Daily Market Report - Thursday, Jan 05, 2023


The major cryptocurrency exchange Coinbase (NASDAQ: COIN) saw its stock jump more than 12% on Wednesday after the company reached an agreement with the New York State Department of Financial Services (NYDFS). The U.S. cryptocurrency exchange will pay a $ 50 million fine in response to violations of New York’s financial services and banking laws, as well as invest $50 million to correct its compliance program over the next two years.

“Coinbase has acknowledged its failures in this respect to the Department,” the New York State Department of Financial Services said.

Coinbase is a global prime broker platform for digital assets. The company was founded in 2012 and has been licensed by the NYDFS since 2017. Coinbase shares have fallen more than 80% in 2022.


US stock futures struggling to find the upside momentum after the FED minutes for December revealed that officials expect higher interest rates to remain in place. While European and UK shares traded flat on Thursday as the investors are waiting for the US employment data and Eurozone inflation report, both the economic data set to be released on Friday.


Crude oil prices are still struggling to find strong upside momentum despite a weaker US dollar as investors remain concerned about the global demand outlook. However, considering the last two session’s strong bearish momentum the oil prices can surely rebound in the short term if market sentiment stabilises. On the other hand, API released the crude inventory report. The report showed that US crude inventories expanded by 3.3 million barrels last week.


In the currency market, the dollar index, which compares the value of the dollar to those of six other currencies slightly recovered from the previous session's lows following the release of FED meeting minutes. Meanwhile, the GBPUSD reversed from the early gains and retreated back to near the 1.2000 psychological support area. The sustainability of any gain in the currency pair in the coming days will largely depend on how the US dollar behaves.


The safe-haven metal reversed from the previous session's gains after the metal failed to close above the key resistance area of $1865. As of this writing, the precious metal trades are below the $1850 zone. Moving ahead, gold traders should closely monitor the release of the US ADP employment report and jobless claims data.

Economic Outlook

On the data front, the US Federal Reserve published the minutes of the December monetary policy meeting. The minutes revealed that officials continue to anticipate that ongoing rate increases would be appropriate to achieve the Fed's dual objectives of maximum employment and price stability.

Moving ahead today, the important events to watch:

US – ADP employment report: GMT – 13.15

US – Jobless claims: GMT – 13.30

Coronavirus update:

Worldwide, more than 665 million people have been confirmed infected and more than 6.69 million have died. The United States has confirmed over 102 million cases and has had more than 1.11 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

Technically the overall sentiment remains mixed. However, a fresh demand for EURUSD can be anticipated once the pair rises above the 1.0650 resistance. Nevertheless, if it continues to consolidate near the 1.0570/50 support, the slump will quickly extend toward the 1.0500 and 1.0480 marks.

The important levels to watch for today: Support- 1.0570 and 1.0540 Resistance- 1.0630 and 1.0650.

GOLD: For today, the first support for the pair appears to be around 1840, in the short-term any break below 1840 the next downside level is to watch 1832. On the other upper side, the immediate resistance is around 1855 any break and close above this level will open at 1860/65.

The important levels to watch for today: Support- 1840 and 1834 Resistance- 1855 and 1860.

Quote of the day - “Do not anticipate and move without market confirmation - being a little late in your trade is your insurance that you are right or wrong.” - Jesse Livermore.

Check out the detailed daily market report here - https://gulfbrokers.com/en/daily-market-report-596