Daily Market Report - Thursday, Oct 27, 2022


Euro continues to trade steady as markets wait to hear from the European Central Bank on its latest interest rate decision. The central bank expected to raise interest rates by 75bps for a second consecutive decision. The ECB Monetary Policy Statement is set to be released at 12:15 GMT. Along with this release will see the ECB president Christine Lagarde Conference 30-minutes after at 12:45, ECB Lagarde may sound hawkish on interest rate guidance amid soaring price pressures.


US futures slightly retreat from the highs after the Facebook parent Meta Platforms (NASDAQ: META) released disappointing third-quarter earnings results. Meta revenue fell 4% to $27.71 billion from $29.01 billion, slightly higher than the $27.4 billion market expectation. “While we face near-term challenges on revenue, the fundamentals are there for a return to strong revenue growth” - Meta CEO Mark Zuckerberg said.

On the earnings front, Apple, Amazon, Shopify, and Pinterest are amongst those reporting the last quarter's financial results today.


Crude oil futures trade near the session highs, the upside momentum supported by the latest US crude exports data. Total US petroleum exports reached 11.4 million barrels a day last week, according to the Energy Information Administration. On the other hand, the EIA data showed the US crude inventories rose by 2.558 million barrels in the week ended October 21st, compared with market expectations of a 1.029-million-barrel increase.


In the currency market, the GBPUSD hovers near weekly highs. However, considering the recent strong rebound in the British pound, the US dollar movement will continue to play a vital role in this currency pair's future direction. The Australian dollar remains one of the strongest currency pairs this week boosted by the gold price and stock market rally.


The precious metal trades flat ahead of the release of the US GDP report, markets forecast the US economy to expand at an annualized rate of 2.4% following the 0.6% contraction recorded in the second quarter. As of the writing, the gold price trades near $1660.

Economic Outlook

On the data front, the Bank of Canada (BoC) has decided to slow its pace of rate hikes amid fears of a major global recession. The central bank has increased its benchmark interest rate by 50 basis points to 3.75 percent, consensus market expectations for a 75-basis point hike.

Moving ahead today, the important events to watch:

Eurozone – ECB interest rate decision and statement: GMT – 12.15

US – GDP: GMT – 12.30

US – Durable goods orders: GMT – 12.30

Coronavirus update:

Worldwide, more than 627 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 97 million cases and has had more than 1.06 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

For today, the first nearest support level is located at 1.0000. In case it breaks below this level, it will head towards the next support level which is located at near 0.9960 then 0.9930/10. On the upside, 1.0110 will act as an immediate resistance, and a break above this level could open up a buying trend until 1.0180 and 1.0200.

The important levels to watch for today: Support- 1.0000 and 0.9930 Resistance- 1.0100 and 1.0180.

GOLD: For today as long as the metal trades above $1650 levels, the short-term uptrend will remain in place. On the downside, $1652 is the immediate support level, followed by $1645. Further selling pressure will intensify only if the Index break below the $1640 level.

The important levels to watch for today: Support- 1652 and 1648 Resistance- 1670 and 1675.

Quote of the day - “Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” ~ Peter Lynch.

Read more - https://gulfbrokers.com/en/daily-market-report-570