Daily Market Report - Thursday, Feb 16, 2023


Wall Street and key US indices ends on a positive note on Wednesday as Investor sentiment got a boost from Commerce Department data showing that retail sales jumped 3.0% in January, the biggest increase since March of 2021 and compared to the market forecasts a monthly rise of just 1.8% in January. The report also showed vehicle sales climbed 5.9% in January spending at restaurants soared 7.2%. Meanwhile, sales at gasoline stations were flat. Excluding autos, sales increased by 2.3% and excluding gas and autos by 2.6%.


European shares opened on a positive note Thursday after U.S. stocks ended the previous session higher. The US stock futures extend the gains on Thursday, the recent momentum supported by robust economic and encouraging Q4 earnings results from Roblox, Roku and Cisco Systems.

On the earnings front, DoorDash, DraftKings and Applied materials are amongst those reporting the last quarter's financial results today.


Crude oil prices ended slightly higher on Wednesday despite a strong dollar and a large US crude inventory build. The latest EIA inventory data showed US crude inventories jumped by 16.3 million barrels last week, far exceeding expectations of a 1.2 million barrel build. While as of this writing, the oil futures reversed from early highs and traded near the daily lows.


In the currency market, the EURUSD reversed from the previous session's losses and rebounded back to above 1.0710 Thursday Morning. However, the overall momentum is expected to remain under pressure for this whole month. While ECB President Christine Lagarde said on Wednesday, the ECB plans to raise interest rates by a half percentage point, even as price inflation also shows signs of easing in the eurozone.


Gold price struggling to regain upside momentum due to pressure from the strong dollar and expectations for more interest rate hikes by major central banks. Interest rate futures markets are now expecting the Fed's target rate to peak above 5.2% in July. Moving ahead to the North American session, gold traders and investors should closely monitor the release of US PPI, jobless claims and housing numbers.

Economic Outlook

On the data front, the Australian Bureau of Statistics released the latest Australia employment report on Thursday early morning. The data showed the net employment fell 11,500 in January from December, compared to the market forecasts of a 20,000 rise in January. The jobless rate climbed to 3.7 percent in January, and above market estimates of 3.5%.

Moving ahead today, the important events to watch:

US – PPI: GMT – 13.30

US – Building permits: GMT – 13:30

US – Philly Fed manufacturing index: GMT – 13:30

Coronavirus update:

Worldwide, more than 677 million people have been confirmed infected and more than 6.78 million have died. The United States has confirmed over 104 million cases and has had more than 1.14 million deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

For today, the first nearest support level is located at 1.0650. In case it breaks below this level, it will head towards the next support level which is located near 1.0610/00. On the upper side, 1.0760 will act as an immediate and strong hurdle while 1.0800 will be a critical resistance zone because above this, bulls are likely to dominate.

The important levels to watch for today: Support- 1.0650 and 1.0610 Resistance- 1.0760 and 1.0800.

GOLD: The precious metal can regain upside momentum again if it rebounds back to above the $1850 level, any break and closes above this level the next levels to watch are $1865 and $1872. Nevertheless, if it continues to fall, the slump will quickly extend toward the $1826 and $1818 marks.

The important levels to watch for today: Support- 1826 and 1818 Resistance- 1845 and 1850.

Quote of the day - “People don’t like the idea of thinking long term. Many are desperately seeking short term answers because they have money problems to be solved today.” Robert Kiyosaki.
Read more - https://gulfbrokers.com/en/daily-market-report-618