Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

US stock futures climb to a fresh weekly high on Friday ahead of the US NFP report, due later during the early North American session. NFP measures employment levels in the United States that does not include farm workers, private household employees, or non-profits. The market participants are anticipating a gain of 700k jobs in August, the unemployment rate is expected to tick down to 5.7% in June lower than the prior month’s 5.8%.

EQUITIES

Wall Street ended higher for the third consecutive day on Thursday boosted by strong US jobless claims numbers and IMF has upgraded its growth outlook for the US. IMF forecasting the 2021 US GDP to touch 7%, compared to the previous projection made in April for 4.6% growth.

OIL

Crude oil prices slightly reversed from the previous session highs after OPEC+ delayed its ministerial meeting until Friday to hold more talks on oil output policy. On Thursday, US crude futures jumped above $75 for the first time since October 2018. The oil prices received additional support after both EIA and API data showed the US, crude stockpiles fell much more than expected last week.

CURRENCIES

In the currency market, the US Dollar index trading above the previous month high on Friday, and the future direction of the USD will depend on NFP figures which will release later today. On the other hand, the British pound fell to a new weekly low of 1.3745 on Friday following the dovish comments from BoE Governor Andrew Bailey.

GOLD

The Safe-haven metal trades steady despite strong US dollar supported by amid concerns over the spread of the Delta variant of COVID-19 across the world.

Economic Outlook

On the data front, the US released the latest jobless claims report and June ISM manufacturing data on Thursday. The US Initial jobless claims fell to 364,000 in the latest week, the lowest weekly figure since the middle of March 2020. The June ISM manufacturing PMI registered 60.6%, a decrease of a 0.6 percentage point from the May reading of 61.2%.

Coronavirus update:

Worldwide, more than 182 million people have been confirmed infected and more than 3.93 million have died. The United States has confirmed over 33.64 million cases and has had more than 604,700 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: The currency pair extends slide to a fresh weekly low of 1.1821 during the European session. The next downside levels to watch 1.1800 and 1.1780 for today.

The important levels to watch for today: Support- 1.1800 and 1.1780 Resistance- 1.1880 and 1.1920.

GOLD: The yellow metal trading above $1780 on Friday. The near-term resistance is around $1790, any break over targets $1795/$1800. On the other side, the immediate support is at $1770 and any break will drag the gold to $1765/60 levels.

The important levels to watch for today: Support- 1770 and 1760 Resistance- 1790 and 1797.

Quote of the day: Your trading needs to boil down to rules, money management, and that is it – Michael Covel.

Read more- https://gulfbrokers.com/en/daily-market-report-341

 

[syamfx2020]

The markets in the U.S. will be closed on Monday in observance of the Independence Day holiday. However, other foreign financial and currency markets are expected to remain open for trading.

EQUITIES

European shares started the new on a positive note while the Chinese shares traded mixed following the release of weak Services PMI data.

OIL

Crude oil prices trading higher on Monday as the oil investors and traders waiting for the final outcome on the OPEC+ alliance's production plan for August.

CURRENCIES

In the currency market, the US dollar slightly recovered some previous session losses on Monday, but the overall momentum remains mixed after Friday’s correction. On the other hand, the Australian dollar trading steady after the Australian Bureau of Statistics released better-than-expected retail sales data.

GOLD

The Safe-haven metal holding the previous session gains supported by the weak US dollar. At the time of writing, the metal hovers near the $1790 area.

Economic Outlook

On the data front, Australia retail sales increased 0.4% from a month earlier in May 2021, following a 1.1% increase in April.

On Friday, the US labor department released the June month Nonfarm payrolls report. The US economy added 850k jobs in June, compared to the estimate of 706k estimate. While the unemployment rate rose to 5.9% from 5.8%.

This week the main highlights of the economic calendar will be the RBA interest rate decision, FOMC and ECB meeting minutes, and Chinese inflation data.

Coronavirus update:

Worldwide, more than 183 million people have been confirmed infected and more than 3.97 million have died. The United States has confirmed over 33.64 million cases and has had more than 604,700 deaths from COVID-19, the highest totals in the world.

Technical Outlook

GBPUSD: The currency pair trades above the 1.3830 level on Monday. If the bullish momentum continues the next upside levels to watch 1.3880/90. On the downside, the immediate support to watch 1.3800 then 1.3780.

The important levels to watch for today: Support- 1.3800 and 1.3780 Resistance- 1.3880 and 1.3910.

GOLD: The yellow metal trading above $1790 on Monday. The near-term resistance is around $1800, any break over targets $1805/$1810. On the other side, the immediate support is at $1784, and any break will drag the gold to $1780/76 levels.

The important levels to watch for today: Support- 1784 and 1776 Resistance- 1797 and 1805.

Quote of the day: Successful investing professionals are disciplined and consistent and they think a great deal about what they do and how they do it. Benjamin Graham.

Read more- https://gulfbrokers.com/en/daily-market-report-342

 

[syamfx2020]

This week the main highlights of the economic calendar will be the RBA decision, FOMC and ECB meeting minutes, and Chinese CPI.

Earnings to watch: Levis

 

[syamfx2020]

The currency pair up more than 70 pips from yesterday. If the bullish momentum continues the next upside levels to watch 0.9390 and 0.9420. On the downside, 0.9240 remains a crucial support area to watch.

 

[syamfx2020]

Crude oil futures slightly retreat after hitting a new session high on Tuesday following the OPEC+ failed to agree on a deal to increase production. OPEC's Secretary-General Mohammad Barkindo said in a statement on Monday the meeting had been cancelled.

“We cannot extend the agreement or conclude a new agreement under the same conditions. We have the sovereign right to negotiate this,” - UAE Energy Minister Suhail Al Mazrouei said.

"We have made fantastic achievements in 14 months, and it would be shameful for us not to maintain them," Saudi energy minister Prince Abdulaziz bin Salman said.

EQUITIES

European stocks rebounded from the early session lows after the release of better-than-expected Eurozone retail sales numbers. While UK shares holding the previous session gains supported by strong construction PMI data.

OIL

US crude futures reached their highest level since November 2014 and the price of Brent crude oil hit its highest level since October 2018, exceeding $ 77 a barrel.

CURRENCIES

In the currency market, the British pound extends gains against the US dollar and Euro after the positive comments from UK Prime Minister Boris Johnson. He confirms the government aims to end restrictive measures on July 19, with a final decision to be taken next week.

GOLD

The Safe-haven metal climb to a fresh weekly high of $1809 on Tuesday boosted by the weaker US dollar and US Treasury bond yields.

Economic Outlook

On the data front, the Reserve Bank of Australia kept interest rates at a record low of 0.10% and maintained its QE program. “The board remains committed to maintaining highly supportive monetary conditions to support a return to full employment in Australia and inflation consistent with the target”. RBA Governor Lowe said.

Coronavirus update:

Worldwide, more than 184 million people have been confirmed infected and more than 3.98 million have died. The United States has confirmed over 33.7 million cases and has had more than 605,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: The currency pair retreat back to below 1.1850 after the weak German economic data. On the downside, 1.1800 is a crucial support level to watch for this week.

The important levels to watch for today: Support- 1.1830 and 1.1800 Resistance- 1.1890 and 1.1930.

GOLD: The yellow metal trading steady above $1800. If the bullish momentum continues the next upside level to watch $1810 and $1820.

The important levels to watch for today: Support- 1800 and 1795 Resistance- 1810 and 1815.

Quote of the day: “You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.” Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-343

 

[syamfx2020]

US Dollar Index rebounded back to above 92.50 on a strong safe-haven bid.
Crude Oil prices slightly recovered while GOLD stays above $1800 ahead of FED minutes.
EURO remains lower against the US dollar and British pound.

Read more- https://gulfbrokers.com/en/daily-market-report-344

 

[syamfx2020]

Stay-at-home stock Zoom (NASDAQ: ZM) gained more than 20% since the start of June 2021. Will the stock sustain bull run?

Read my detailed blog here-

Zoom is surging: Will the stock sustain bull run?

"Work is no longer a place, it’s a space where Zoom serves to empower your teams to connect and bring their best ideas to life," - Eric S. Yuan, CEO of Zoom Video Communications.

gulfbrokers.com

 

[syamfx2020]

Euro trades near the support 1.1800 area. If it breaks below 1.18 the next downside levels to watch 1.1770 and 1.1740. On the upper side, the first immediate resistance can be found at 1.1850 then 1.1890.

 

[syamfx2020]

US Federal Reserve released the June FOMC meeting minutes, focus shifts to ECB minutes.
Crude oil prices fall for a third consecutive day while Gold price trades steady.
Asian stocks slid and Wall Street set to open lower.

Read more-

DAILY MARKET REPORT

On Wednesday, the Federal Reserve released the June FOMC meeting minutes. The minutes showed that the Fed policymakers are growing more comfortable with the idea of reducing asset purchases.

gulfbrokers.com

 

[syamfx2020]

China posted weaker-than-expected Inflation data.
GOLD price failed to break above $1820.
UK and European stocks slightly rebounded.
Oil prices jumped on lower US stockpiles.

Read more-

DAILY MARKET REPORT

China's annual inflation rate dropped by 1.1% and on a monthly basis, the CPI edged down by 0.4 percentage points in June.

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