Daily Market Report - Friday, Mar 03, 2023


Stocks on Wall Street ended slightly higher, gaining early in the day as investors cheered positive comments from Atlanta Fed President Raphael Bostic and the markets received additional buying pressure on better-than-expected quarterly earnings results from Okra, Dell and Macy’s. Bostic supported keeping rate increases at 25 basis point increments and said the central bank could be in a position to pause rate hikes sometime this summer. Meanwhile, Fed Gov. Chris Waller said if the data continues to be too hot, the policy target will have to be raised above 5.4%.

Moving ahead, today's ISM services PMI data will be the highlight of the final trading day of the week along with any speakers from the Fed will also be closely watched.


European shares opened higher on Friday. Meanwhile, the overall upside is very limited. On Thursday, European markets ended higher following the release of the latest ECB minutes. The minutes said the policy rates were coming closer to a level where caution was needed to ensure that borrowing costs were not raised excessively.


Crude oil futures held the previous session gains despite the strong US dollar and another larger-than-expected crude draw. This week's bullish sentiment was supported by stronger-than-expected PMI figures from China. The latest services PMI data from China showed, the services PMI climbed to 55.0 in February 2023, up from 52.9 in the previous month.


In the currency market, EURUSD rebounded back to above 1.0610 as the US Dollar consolidated against its rivals after climbing to above 105 but yesterday’s reversal showed that the euro uptrend against the dollar is losing momentum after the recent rebound. However, investors should closely monitor the release of the latest services PMI data from the Eurozone and Germany today.


The safe-haven metal recovered back to above $1840 Friday morning. Considering the recent rebound gold investors should closely monitor the release of US services activity data. Technically, the short-term trend remains supportive while If the US dollar regains further upside strength, we could see an extension to the weakness in the precious metals.

Economic Outlook

On the data front, Euro Zone inflation eases slightly to 8.5% in February, but core inflation rises to 5.6% in February, from 5.3% in January. ECB President Christine Lagarde said that rates will have to rise higher and stay higher for some time to combat inflation.

Moving ahead today, the important events to watch:

UK – Services PMI: GMT – 09:30

US – ISM services PMI: GMT – 15:00

Technical Outlook and Review

From a technical perspective, the 1.0570 area of confluence has recently been held as a firm support, failure to defend the mentioned support levels has the potential to drag the pair further towards the 1.0550 and 1.0530 support zone.

The important levels to watch for today: Support- 1.0570 and 1.0550 Resistance- 1.0640 and 1.0670.

GOLD: Today as long as the metal trades above 1840 levels, the short-term uptrend will remain in place. On the upper side, the first resistance is located around 1848, a break above this level will confirm a possible move to 1855. On the downside, 1838 is the immediate support level, followed by 1734. Further selling pressure will intensify only if the metal break below 1830 levels.

The important levels to watch for today: Support- 1835 and 1828 Resistance- 1848 and 1855.

Quote of the day - “Your success in investing will depend in part on your character and guts and in part on your ability to realize, at the height of ebullience and the depth of despair alike, that this too, shall pass.” Jack Bogle.
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