DAILY MARKET REPORT -Friday, Jan 22, 2021

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UK and Australia reported the latest retail sales data on Friday. UK December sales rose 0.3% on the month, better than 4.1% drop seen in November while the figures came well below market forecasts of 1.2%. On an annualized basis, the UK retail sales rose by 2.9% in December versus 4.0% expected.

During the Asian session, Australian reported a larger-than-expected 4.2% drop in December retail sales, following the 7.1% jump in November.

EQUITIES

US futures and Asian shares slipped lower on Friday amid the resurgence of coronavirus cases in China and US. The U.S. reported 4,200 deaths for Wednesday, the second-highest daily number ever.

On the earnings front, Tech stocks Intel (NASDAQ: INT) and IBM (NYSE: IBM) reported Q4 financial results on Thursday. Intel Q4 earnings and revenue beat the Wall Street estimates while IBM posted mixed results.

OIL

Crude oil prices extend slide ahead of EIA inventory data that will come out at 16:00 GMT. The bearish pressure started after the API oil inventories increased by 2.6 million barrels in the week.

CURRENCIES

In the currency market, the Australian dollar retreated from the previous session highs after disappointing retail sales data for December. During the previous session, the currency pair climbed to fresh weekly highs supported by strong employment data. Meanwhile, the New Zealand dollar trading steady on Friday after better-than-expected inflation figures.

GOLD

The gold price trading slightly lower on Friday after the US dollar rebounded from the fresh weekly lows. The US dollar received moderate support on Thursday following better-than-expected Housing and manufacturing in the Philadelphia region.

Economic Outlook

On the data front, US jobless claims fell marginally from the prior week but remained at 900,000. While the Philadelphia Fed Manufacturing Index in the US jumped to 26.5 in January of 2021 from a revised 9.1 in December.

On Thursday, ECB policymakers left key interest rates on hold and leave its bond-purchase stimulus program unchanged. “We are monitoring very carefully exchange rates.”

Moving ahead today, the important events to watch:

US – Existing home sales: GMT – 15.00

US – Crude oil inventories: GMT – 16.00

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 97.1 million. The United States has reported 24.4 million confirmed cases and has had more than 407,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair surged to new session highs n Friday lifted by the mixed Eurozone and Germany manufacturing data.

eurusd


The important levels to watch for today: Support- 1.2150 and 1.2110 Resistance- 1.2200 and 1.2230.

GOLD: The yellow metal capped the recent upside move after the metal failed to break above the strong resistance area $1875.

gold neww


The important levels to watch for today: Support- 1856 and 1840 Resistance- 1870 and 1876.

Quote of the day: The greatest enemies of equity investor are expenses and emotions.

Read more- https://gulfbrokers.com/en/daily-market-report-244
 
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