Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

On Monday, during the Asian session, the People's Bank of China (PBoC) left its benchmark interest rates unchanged, as widely expected. The one-year loan prime rate (LPR) was left unchanged at 3.85%, while the five-year remained at 4.65%.

EQUITIES

Global stocks and US futures trading lower on Monday as investors remain concerned about the new wave of COVID-19 infections in Europe, fresh US-China tensions, and strong US Treasury yields.

OIL

Crude Oil prices trading lower on Monday. Meanwhile, on Friday the oil prices slightly rebounded from last week lows after a few European countries announced they will resume distributing the AstraZeneca-Oxford vaccine.

CURRENCIES

In the currency market, the US dollar index trading steady on Monday ahead of Fed Chair Jerome Powell’s speech due later in the day. While the EURO hovers near the previous week low after the German Chancellor Angela Merkel is considering a four-week extension of the nationwide lockdown.

GOLD

The safe-haven metal slightly retreated from the daily highs and If the US dollar continues the upside move, that could push gold back to near $1700 area.

Economic Outlook

This week the main highlights of the economic calendar will be the PMI data from the US, UK, Eurozone, Japan and Australia, US GDP and Durable good orders, UK CPI, employment report and retail sales.

Moving ahead to the North American session, today the Investors will likely keep a look at the US Fed Chair Jerome Powell’s speech and US existing home sales data.

Coronavirus update:

Worldwide, more than 122.4 million people have been confirmed infected and more than 2.7 million have died. The United States has confirmed over 29.7 million cases and has had more than 541,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD: The currency pair trading below the 1.1900 zones. If the bearish momentum continues the next downside levels to watch 1.1840 and 1.1810.

The important levels to watch for today: Support- 1.1860 and 1.1830 Resistance- 1.1910 and 1.1940.

GOLD: The yellow metal dropped to near the short-term support area of $1726. Overall, the momentum remains bearish throughout today.

The important levels to watch for today: Support- 1720 and 1710 Resistance- 1740 and 1746.

Quote of the day: One of the many funny things about the stock market is that every time one person buys, another sells, and both think they are astute-William Feather.

Read more- https://gulfbrokers.com/en/daily-market-report-269

 

[syamfx2020]

Another busy week ahead as investors keep an eye on the Fed Chair Jerome Powell’s testimony and EU summit.

Apart from this, there are several other important events and earnings(Gamestop) to watch

 

[syamfx2020]

View attachment jason-briscoe-Gw_sFen8VhU-unsplash.jpg
Global markets started this new week on a bearish note. US futures and Global stocks trading lower on Monday. For this week, the main drivers for the Financial markets remain the US dollar and bond yields movement, Fed Chair Jerome Powell’s testimony and the EU summit.

GOLD

On Monday, during the European session, the precious metal trading below $1730 area. Overall, the momentum remains bearish throughout the session.

The key technical levels to watch this week:

Support: $1718 and $1700

Resistance: $1744 and $1756

DOW JONES

Dow Jones futures extend lower on Monday ahead of Fed Chair Jerome Powell’s speech due later in the day.

The key technical levels to watch this week:

Support: 32200 and 32000

Resistance: 33000 and 33300

EURUSD

The currency pair continuously trading weaker against the dollar on Monday.

The key technical levels to watch this week:

Support: 1.1840 and 1.1820/1.1800

Resistance: 1.1940 and 1.2000

US DOLLAR INDEX

The greenback trading steady on Monday. For this week, the traders and investors will also pay attention to the important data for USD this week, U.S. Fed Chair Jerome Powell’s testimony and U.S. GDP is due on Thursday.

The key technical levels to watch this week:

Support: 91.30 and 91.00

Resistance: 92.30 and 92.70

Read more- https://gulfbrokers.com/en/weekly-technical-analysis-gold-dow-jones-eurusd-and-dollar-index

 

[syamfx2020]

On Monday, the National Association of Realtors (NAR) data showed the US Existing Home sales fell 6.6% in February to a seasonally adjusted annual rate of 6.22 million. Moving ahead to the North American session, the US new home sales data are set to be released later in the day. Analysts expect a reading of 875,000 compared to January’s 923,000.

EQUITIES

Wall Street ended higher on Monday as bond yields retreated. European stocks and US stock futures trading lower on Tuesday as Europe is affected by the third wave of infections. On Monday, Germany announced yesterday that it extends its lockdown to the middle of April and France also announced a partial lockdown over the weekend.

OIL

Crude Oil prices struggling to find the upside momentum after suffering from their largest weekly loss since October. During the previous session, the oil price slightly rebounded following a large US trial that showed that the vaccine from AstraZeneca was 79% effective at preventing the coronavirus’s symptoms.

CURRENCIES

In the currency market, the New Zealand dollar hits a fresh year low on Tuesday after the NZ government has moved to impose curbs on the housing market to ease prices, announcing its plans to abolish the tax-deductibility of interest payments.

GOLD

The safe-haven metal trading unchanged on Tuesday. The important events to watch today for Gold traders, the Fed Chair Jerome Powell will testify on Tuesday before Congress, together with Treasury Secretary Yellen.

Economic Outlook

On the data front, the UK released the monthly job report. The data showed that the unemployment rate unexpectedly dropped to 5% in January.

On Monday, Richmond Federal Reserve President Thomas Barkin said that he was hopeful that the US economy was on the brink of completing recovery.

Coronavirus update:

Worldwide, more than 123 million people have been confirmed infected and more than 2.7 million have died. The United States has confirmed over 29.8 million cases and has had more than 542,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD: The currency pair retreated back to below 1.1900 after It climbed to a fresh session high of 1.1930. Overall, momentum remains bearish throughout this week.

The important levels to watch for today: Support- 1.1860 and 1.1830 Resistance- 1.1940 and 1.1990.

GOLD: The yellow metal slightly reversed from the previous session lows and trading above $1735 during the European session.

The important levels to watch for today: Support- 1720 and 1710 Resistance- 1746 and 1754.

Quote of the day: Good day traders do not have big swings or big losing days. A good day trader is very conservative and picks his spots closely- Edward Franco.

Read more- https://gulfbrokers.com/en/daily-market-report-270

 

[syamfx2020]

Texas-based company GameStop is scheduled to report its first quarterly earnings on Tuesday after market close. The company expected to post adjusted earnings of $1.42 per share, on more than $2.2 billion in revenue.

Even though fundamentals didn’t work much with this stock from the last couple of months the traders are eagerly waiting for the earnings results. in late January, the surprising surge in GameStop stock, triggered by the individual investors on the Reddit forum r/wallstreetbets pushed shares from US$20 to US$480.

Will today's results help the $GME to gain further upside momentum?

By starting of 2021 the stock was trading below twenty dollars. Over the last 3 months, the video game retailer stock exploded by more than 2500% and the price has risen as high as $483. Meanwhile, the stock retreated to $40 area later. But by March, $GME share price had risen again.

Technically the overall momentum remains mixed throughout the last couple of days after the first two weeks rally in this month. On Monday, the stock closed below the $200 level. In the short term if the bearish momentum continues the next downside target at $175 and $160. On the flip side, if the price holds above $210, the next immediate resistance to watch $230 and then $245.

Read more here- https://gulfbrokers.com/en/its-gamestop-earnings-day-gme-slips-below-200-ahead-of-results

 

[syamfx2020]

US dollar hits fresh year high on Wednesday against a basket of most major currencies. The safe-haven currency climbed to above 92 on Tuesday after Treasury Secretary Yellen said the Biden administration was considering boosting the corporate taxes from the current 21% to 28% as the economy recovers from COVID-19.

EQUITIES

Global stocks extend losses on Wednesday on concerns about the latest round of lockdowns across Europe. On the other hand, WHO said the weekly global death toll from the virus is rising again following six weeks of declines. On Wall Street overnight, the Dow Jones Industrial Average fell 0.94%, the S&P 500 lost 0.76% and the Nasdaq Composite dropped 1.12%.

OIL

Crude Oil prices slightly rebounded from the previous session losses. On Tuesday, the oil price fell to a new weekly low over escalating concerns about weakening demand due to a new wave of coronavirus infections across Europe. Meanwhile, the API data showed stocks of crude oil in the US increased by 2.927 million barrels in the week ended March 19th, compared with market expectations of a 0.9 million decline.

CURRENCIES

In the currency market, the British pound plunged to a new session low following weaker-than-expected Inflation data. The data showed UK inflation rate dropped to 0.4% in February of 2021 from 0.7% in January.

GOLD

The gold price trading sideways and the overall momentum remains bearish this week after Greenback surged to new highs.

Economic Outlook

On the data front, German and French manufacturing data came better-than-expected. France Manufacturing PMI rose to 58.8 in March of 2021 from 56.1 in the previous month while the German manufacturing PMI came in at 66.6 this month vs. 60.8 expected

Moving ahead today, the important events to watch:

US – Durable goods orders: GMT – 12.30

US – Manufacturing PMI: GMT – 13.45

US – EIA Crude oil inventories: GMT – 14.30

Coronavirus update:

Worldwide, more than 123.4 million people have been confirmed infected and more than 2.72 million have died. The United States has confirmed over 29.8 million cases and has had more than 542,900 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD: The currency pair continuously trading weaker against the dollar. At the time of writing, the pair slightly rebounded from the early session lows boosted by the upbeat German and French economic data.

The important levels to watch for today: Support- 1.1810 and 1.1770 Resistance- 1.1850 and 1.1880.

GOLD: The precious metal currently trading at $1732. On the upper side, the immediate resistance to watch $1740/46.

The important levels to watch for today: Support- 1726 and 1718 Resistance- 1740 and 1746.

Quote of the day: And finally, no matter how good the science gets, there are problems that inevitably depend on judgement, on art, on a feel for financial markets – Martin Feldstein.

Read more- https://gulfbrokers.com/en/daily-market-report-271

 

[syamfx2020]

US Dollar extends higher ahead of the final Q4 GDP data which is set to be released at 12:30 GMT. At the time of writing, the Dollar index trades at 92.66.

EQUITIES

Global stocks trading lower on concerns about the coronavirus pandemic in Europe and escalating tensions between the Western countries and China. Meanwhile, the Biden administration is considering up to US$3 trillion in additional spending on infrastructure, green energy, and education.

OIL

Oil prices pushed higher in the overnight session after a shipping mishap blocked the Suez Canal but failed to keep the upside momentum. The oil price retreated back to lower during the Asian session on Thursday.

CURRENCIES

In the currency market, the British pound and Euro extend lower on Thursday after the US dollar Index found strong buyers above 92. The US dollar received additional buying pressure on Wednesday after upbeat US economic data.

GOLD

The safe-haven metal price continuously trading steady above $1730 supported by the rising tensions between Western countries and China.

Economic Outlook

On the data front, the Swiss National Bank (SNB) announced its latest monetary policy decision and left its sight deposit interest rate unchanged at -0.75%.

On Wednesday, the US released the latest manufacturing PMI data. The data showed the PMI rose slightly to 59.0, up from 58.5 and within expectations.

Moving ahead today, the important events to watch:

US – Jobless claims: GMT – 12.30

US – GDP: GMT – 12.30

Coronavirus update:

Worldwide, more than 124 million people have been confirmed infected and more than 2.72 million have died. The United States has confirmed over 29.9 million cases and has had more than 543,800 deaths from COVID-19, the highest totals in the world. While, AstraZeneca said its COVID-19 vaccine was 76% effective in a new analysis of its US trial, lower than 79% initially announced.

Technical Outlook

USD/JPY: The currency pair jumped back to above 109 today. The pair may continue to push higher if it holds above 109. The next upside levels to watch 109.35 and 109.60.

The important levels to watch for today: Support- 108.90 and 108.60 Resistance- 109.35 and 109.60.


GOLD: The yellow metal trading weaker below $1740 supported by $1720. Today, gold is again expected to face resistance around $1746 along with support around $1720 and $1710.

The important levels to watch for today: Support- 1726 and 1718 Resistance- 1740 and 1746.

Quote of the day: When a long-term loses its momentum, short-term volatility tends to rise. It is easy to see why that should be: the trend-following crowd is disoriented – George Soros.

Read more- https://gulfbrokers.com/en/daily-market-report-272

 

[syamfx2020]

EURUSD bearish momentum continues for the fourth consecutive day. The currency pair hits a fresh yearly low of 1.1760 on Thursday. The recent sell-off fuelled by rising COVID-19 cases and the extension of restrictive measures across Europe.

EQUITIES

Wall Street ended higher on Thursday supported by the upbeat macro-economic data and positive comments from U.S. President Joe Biden. President Biden’s first formal news conference confirmed the new goal of having 200 million vaccine shots administered in his first 100 days in office.

Darden Restaurants (NYSE: DRI) shares closed 8% higher on Thursday after the company announced a new share buyback plan and forecast upbeat fourth-quarter revenue and profit.

OIL

Oil prices rebounded higher after President Biden boosted the US COVID vaccination goal. During the previous session, the US crude oil prices dropped but refuse to break this week lows.

CURRENCIES

In the currency market, the US dollar index climbed to a fresh session high of 92.90 on Thursday boosted by better-than-expected US GDP and employment claims data. Meanwhile, the British pound recovered from previous session losses following positive comments from BOE Chief Economist Andy Haldane.

GOLD

The precious metal trading lower on Friday. Overall, the momentum remains mixed this week as the dollar index gained strong upside momentum.

Economic Outlook

On the data front, the UK retail sales rebounded 2.1% month-over-month in February of 2021, following an 8.2% plunge in January.

On Thursday, the US released the latest GDP and jobless claims figures. The US gross domestic product in the fourth quarter of 2020 was revised upward to 4.3% from the previous estimate of 4.1%. Meanwhile, US weekly jobless claims fell to 684,000 last week from 781,000 a week earlier.

Coronavirus update:

Worldwide, more than 124.9 million people have been confirmed infected and more than 2.72 million have died. The United States has confirmed over 30 million cases and has had more than 545,200 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: The currency pair struggling to find the upside momentum. On the downside, the key support area to watch today 1.1740.

The important levels to watch for today: Support- 1.1760 and 1.1740 Resistance- 1.1800 and 1.1820.

GOLD: The yellow metal trading weaker below $1730 supported by $1720. Today, gold is again expected to face resistance around $1736 along with support around $1718 and $1708.

The important levels to watch for today: Support- 1723 and 1718 Resistance- 1736 and 1744.

Quote of the day: You can’t reach success in investment if you do not think independently- Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-273

 

[davtrent55]

Wish oil would drop, got a lot riding on it....

 

[syamfx2020]

Crude oil prices slightly rebounded from the early session lows. During the Asian session, the oil prices fell after the re-floating of the Ever-Green vessel that was stuck along the Suez Canal. The container ship Ever Given has been partially floated and straightened in the Canal.

EQUITIES

European shares and US stock futures opened this week on a positive note while Asian shares ended mixed on concerns about the amid worsening U.S.-China relations. On Friday, Wall Street ended higher boosted by strong macro-economic data and faster coronavirus vaccine rollout in the US.

OIL

This week, the oil traders and investors will closely monitor the US oil inventory data and the OPEC+ meeting scheduled for Thursday. At their last meeting, OPEC+ had decided to continue with higher supply restrictions into April.

CURRENCIES

In the currency market, the British pound trading strong against the Euro and the US dollar. During the European session, the EURGBP hits a fresh session low of 0.8510, the lowest level since 28 February 2020.

GOLD

The precious metal trading lower on Monday as the US Dollar climbed to a 4-month high. Overall, the momentum remains bearish throughout today.

Economic Outlook

This week the main highlights of the economic calendar will be the release of the US NFP report, UK GDP and Germany retail sales and employment report.

China-US relations were back on the radar after Biden’s trade negotiator said the United States was not yet ready to lift Donald Trump’s tariffs on Chinese imports but could be open to talks with Beijing. Meanwhile, the US secretary of State Antony Blinken said that there were increasingly adversarial aspects to the relationship of the United States with China.

Coronavirus update:

Worldwide, more than 127 million people have been confirmed infected and more than 2.7 million have died. The United States has confirmed over 30 million cases and has had more than 548,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: The currency pair trading near the previous week low. On the downside, 1.1740 and 1.1710 will be the crucial levels to watch this week.

The important levels to watch for today: Support- 1.1760 and 1.1740 Resistance- 1.1800 and 1.1830.

GOLD: The yellow metal trading weaker below $1730 supported by $1720. Today, gold is again expected to face resistance around $1734 along with support around $1718 and $1708.

The important levels to watch for today: Support- 1720 and 1706 Resistance- 1738 and 1744.

Quote of the day: The stock market is the story of cycles and of the human behaviour that is responsible for overreactions in both directions – Seth Klarman.

Read more- https://gulfbrokers.com/en/daily-market-report-274