DAILY MARKET REPORT - Thursday, Jan 07, 2021


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On Wednesday, the FED released the December meeting minutes, the minutes showed all FOMC members felt the current pace of purchases was appropriate. While some members ready to expand the bank's bond-buying scheme and others willing to consider tapering it down. The FED committed to using its full range of tools to support the US economy.


The Dow Jones is hit a new record high, amid hopes for a bigger fiscal stimulus after both Democratic candidates Raphael Warnock and Jon Ossof won their Senate runoff races in Georgia.


Crude oil price surged to fresh session highs on Thursday boosted by better-than-expected EIA inventory data. The data showed the inventories dropped 8.01 million barrels to 485.46 million barrels in the week ended January 1st.


In the currency market, the Dollar Index slightly recovered from the previous session losses after falling to its lowest level in two and a half years.


The safe-haven metal slipped more than 1.5% on Wednesday after the global stocks surged fresh record highs on hopes of a faster-than-expected economic recovery.

Economic Outlook

On the data front, the US ADP employment data came weaker-than-expected. The data showed the private sector lost 123,00 jobs in December, much worse than the consensus estimate of 75,000 jobs created.

Moving ahead today, the important events to watch:

Eurozone – Consumer Price Index: GMT – 10.00

US – Jobless claims: GMT – 13.30

US –Services PMI: GMT – 19.00

Coronavirus update:

Worldwide, more than 85 million people have been confirmed infected and more than 1.85 million have died. Cases of the novel coronavirus in the United States have surpassed 21.5 million with more than 365,000 deaths. The UK reported more than 60K new infections and 1K deaths on Wednesday.
Technical Outlook

EUR/USD: The currency pairs retreated back to below 1.23 psychological level after the pair failed to break above 1.2350 resistance level.

The important levels to watch for today: Support- 1.2265 and 1.2240 Resistance- 1.2325 and 1.2350.

GOLD: The precious metal slightly rebounded from the previous session lows. At the time of writing, the gold price trading at $1920.
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The important levels to watch for today: Support- 1914 and 1900 Resistance- 1927 and 1933.

Quote of the day: Buy things that are going up, sell things that are going down. And when they stop, get out. – Rob Smith.

Read more- https://gulfbrokers.com/en/daily-market-report-233