Daily Market Report - Friday, Jan 20, 2023


EURUSD again rebounded back to above 1.0850 on Friday supported by hawkish cues from ECB December meeting accounts. The European Central Bank published the minutes from its December meeting on Thursday. The minutes showed a large number of members of the European Central Bank's Governing Council were initially in favor of raising interest rates by 75 basis points (bps) at the December meeting.

Moving ahead, the traders and investors waited to hear from the ECB President Christine Lagarde, to try and understand how the ECB responds to the recent slowdown in eurozone headline inflation.


US stock futures slightly regained momentum on Friday Morning after the streaming giant Netflix reported stronger-than-expected subscriber growth in the fourth quarter, adding 7.66 million net new subscribers, well ahead of the 4.5 million the company had projected. Netflix stock jumped more than 7% in after-hours trading Thursday, after shedding nearly 3% of its value during regular trading.


Crude oil prices rebounded back to near the weekly highs despite the release of weak oil inventory data from API and EIA. On Thursday, the EIA inventory data showed the US crude inventories rose by 8.408 million barrels in the week ended January 13th, compared with market expectations of a 0.593 million draw.


In the currency market, the British pound reversed from the early gains against the US dollar and euro following the release of weaker-than-expected UK retail sales data. Commodity-linked currencies such as the Australian and Canadian dollars inched toward fresh session highs as the gold price hovers near the 9-month highs.


The precious metal rose to a fresh weekly high as Investors have been buying into the safe-haven metal as global market sentiment remains cautious. However, today the gold traders should continue to monitor the comments from FED policymakers Philadelphia Fed President and dove Patrick Harker and Governor Christopher Waller.

Economic Outlook

On the data front, the UK reported disappointing retail sales figures. Retail sales volumes fell by 1% in December from November, the Office for National Statistics said. Excluding auto fuel, retail sales decreased by 1.1 percent, which was bigger than November's 0.3 percent fall.

Moving ahead today, the important events to watch:

Canada – Retail Sales: GMT – 13.30

US – Existing home sales: GMT – 15.00

Coronavirus update:

Worldwide, more than 667 million people have been confirmed infected and more than 6.7 million have died. The United States has confirmed over 103 million cases and has had more than 1.12 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

The pair holding the early gains against the dollar. if the bullish momentum continues the next upside level to watch is in the 1.0860/80 zone. On the flip side, the immediate support at 1.0800 followed by 1.0760.

The important levels to watch for today: Support- 1.0800 and 1.0760 Resistance- 1.0850 and 1.0880.

GOLD: Gold price trades steady above $1930. If the bullish momentum continues the next upside levels to watch are $1940 and $1945. On the downside, any meaningful pullback now seems to find some support near the $1925 zones, below which the slide could further get extended towards the $1920/18 region.

The important levels to watch for today: Support- 1925 and 1918 Resistance- 1940 and 1945.

Quote of the day - I have found that when the market’s going down and you buy funds wisely, at some point in the future, you will be happy. You won’t get there by reading. Now is the time to buy. – Peter Lynch.
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