Daily Market Report by GulfBrokers 2020-2021

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“If you can’t fly then run if you can’t run then walk if you can’t walk then crawl, but whatever you do you have to keep moving forward” – Martin Luther King Jr.

US stock and bond markets will remain closed on Monday in observation of the Martin Luther King Jr holiday.

EQUITIES

Wall Street ended lower on Friday after mixed fourth-quarter earnings data from Big banks. Moving ahead, this week the investors and traders will keep their eyes on Q4 earnings. Goldman Sachs, IBM, Netflix, and United Airlines all scheduled to report quarterly earnings this week.

OIL

Crude oil prices trading lower on Monday due to global demand concerns and amid fears about the continued rise in fresh coronavirus infections.

CURRENCIES

In the currency market, The EURO and kiwi being the notable losers. The Japanese yen remain in favor as global equities slightly weaken while the dollar hit its strongest in two weeks against the EURO.

GOLD

The yellow metal started this week on a bearish note ahead of US President-elect Joe Biden is due to be inaugurated on Wednesday and the metal also faced pressure from a strong dollar.

Economic Outlook

On the data front, China’s fourth-quarter GDP grew 6.5% year-on-year, accelerating from 4.9% growth in the previous quarter. The Industrial production jumped an annual 7.3% in December, beating forecasts for 6.9% while retail sales fell below the previous reading of 5.0% and the 5.5% market consensus.

This week the main highlights of the economic calendar will be the ECB, BOJ, BOC central bank meetings, UK retail sales and CPI data, Manufacturing PMI data from Eurozone, Germany, UK, and the US.

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 95 million. The United States has reported 23.8 million confirmed cases and has had more than 396,000 deaths from COVID-19, the highest totals in the world. On the positive side, the UK reported 38,598 new coronavirus cases on Sunday, which is the lowest number since December 27.

Technical Outlook

EUR/USD:
The currency pair trading at new session lows. Overall, the trends still look bearish and the next immediate support at 1.2050 and 1.20.

eurusd


The important levels to watch for today: Support- 1.2050 and 1.20 Resistance- 1.2120 and 1.2180.

GOLD: The yellow metal plunged on Monday morning to the key support area $1800 but the sellers lost the momentum. The metal rebounded back to above $1830.

gold neww


The important levels to watch for today: Support- 1826 and 1816 Resistance- 1842 and 1854.

Quote of the day: As a trader, you often walk on the blade. Be careful and don’t step off- Marc Rich

Read more- https://gulfbrokers.com/en/daily-market-report-240
 
EURUSD
Support: 1.2050 and 1.20/1.1980 Resistance: 1.2130 and 1.2180/1.2230
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GOLD
Support: $1816 and $1800/$1790 Resistance: $1856 and $1870
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GBPUSD
Support: 1.3510 and 1.3470/1.3430 Resistance: 1.3580 and 1.3630
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A busy week ahead as investors keep an eye on the ECB, BOJ, and BOC bank meetings.

Earnings to watch Netflix, IBM, Intel, MorganStanley, United Airlines.
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Gold price slightly rebounded from the previous session lows. At the time of writing, the metal trades above $1840. During the previous session, the gold price dropped to a fresh monthly low of $1801. This week the main drivers for the precious metal remain the movement of the US dollar, central bank meetings and the resurgence of coronavirus cases. Today the gold investors and traders should closely monitor the U.S. Treasury Secretary Janet Yellen's testimony which is scheduled later in the day. As per the recent updates, she expected to give comments about the future of the U.S. dollar policy.

EQUITIES

US stock futures trading higher ahead of US President-elect Joe Biden's inauguration on Wednesday. On the earnings front, Bank of America (BAC) and Goldman Sachs (GS) reporting earnings today before the bell while Netflix (NFLX) is scheduled to report results after the market close.

OIL

Crude oil prices trading steady on Tuesday supported by the ongoing vaccination in almost all countries and more stimulus measures could aid economic recovery which will boost oil demand in the near future.

CURRENCIES

In the currency market, New Zealand and Australian dollar recovered from the previous session losses following better-than-expected economic data from both the regions.

GOLD

The gold price hovers near the short-term resistance $1842, any break above this level the next upside levels to watch $1850/1856.

Economic Outlook

On the data front, The New Zealand electronic card sales increased by 3.4% in December from the previous month’s increase of 1.4%. On the other hand, Australia's new home sales jumped 26.2% month-over-month in December 2020, after a 15.2% gain a month earlier.

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 95.5 million. The United States has reported 23.9 million confirmed cases and has had more than 397,000 deaths from COVID-19, the highest totals in the world. India and Brazil have the second and third highest case tallies, recording some 10.5 and 8 million cases, respectively.

Technical Outlook

EUR/USD:
The currency pair rebounded back to above 1.2100 during the European session ahead of German Zew economic sentiment data.

eurusd


The important levels to watch for today: Support- 1.2080 and 1.2050 Resistance- 1.2150 and 1.2180.


USD/CAD: The pair trading above 1.2700 in the European session today. The Loonie traders are waiting for the Bank of Canada interest rate meeting on Wednesday. The important levels to watch for this week 1.2680 and 1.2800.

NZDUSD


The important levels to watch for today: Support- 1.2700 and 1.2660 Resistance- 1.2760 and 1.2800.

Quote of the day: Your greatest and most powerful business survival strategy is going to be the speed at which you handle the speed of change. That speed of change is the trend – Ajaero Tony Martins.

Read more- https://gulfbrokers.com/en/daily-market-report-241
 
In the short term if the price breaks above 1.2140 which would open doors towards 1.2160/70 and above that 1.2200 is next. On the downside side, the first immediate support can be found in 1.2100 and then 1.2080/50.
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In my opinion, it was all quite expected.
Although some surprises happen all the time, but I got used to them a long time ago.
 
Any work with the dollar under the current circumstances seems a bit risky to me right now. I could be wrong, of course, but it's still worth thinking a few times and checking the latest news carefully. Too much speculation lately.
 
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