Daily Market Report - Tuesday, Jan 31, 2023


Russian President Putin holds a telephonic conversation with the Saudi prince ahead of the OPEC+ committee meeting. On Monday, Russian President Vladimir Putin held a phone call with Saudi Crown Prince Mohammed Bin Salman. Both sides discussed measures to stabilize the global oil market, the Kremlin said in a statement.

"The two countries are working on stronger ties and more cooperation on OPEC+" – Kremlin.

Ministers from the Organization of the Petroleum Exporting Countries (OPEC) and others including Russia – are due to hold a virtual meeting on Wednesday, Feb 01 at 1100 GMT.


European stocks opened lower on Tuesday after the official figures released by Destatis, Germany's Retail Sales slumped by 5.3% in December in December, compared to market forecasts of a 0.2% increase. It is the biggest decrease since July 2021. On the other hand, figures released by Germany’s National Statistics Office on Monday showed that the country’s GDP fell by 0.2% in the last quarter of last year.


Crude oil prices started the new week on a bearish note as oil investors and traders across the globe waited for the OPEC+ meeting decision to get a clear picture of the oil price's long-term direction. Meanwhile, China, the world's biggest crude importer pledged over the weekend to promote a consumption recovery that would support demand.


In the currency market, Euro struggling to regain upside momentum against the US dollar. The greenback has strengthened against the euro as economic data shows a brighter economic outlook for the United States than for the eurozone. AUDUSD reversed the previous week's gains after the release of weak retail trade data for December. As of this writing, the currency pair trades near the key support area of 0.7000.


The precious metal fell to a fresh weekly low of 1906 Tuesday morning as investors remain cautious ahead of a busy week of central bank decisions. The metal is expected to be extra volatile today due to the month-end volatility. Moving ahead to the North American session, gold traders should closely monitor the release of US consumer confidence data.

Economic Outlook

On the data front, China’s manufacturing PMI unexpectedly increased to 50.1 in January of 2023 from 47.0 in the previous month, beating the market consensus of 49.8.

Moving ahead today, the important events to watch:

Canada – GDP: GMT – 13.30

US – Consumer Confidence: GMT – 15.00

Coronavirus update:

Worldwide, more than 675 million people have been confirmed infected and more than 6.76 million have died. The United States has confirmed over 104 million cases and has had more than 1.13 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

Technically the short-term trend looks bearish after heavy selling pressure and the medium-term support is still around 1.0800. If the pair breaks and closes below this level the next important support is at 1.0760.

The important levels to watch for today: Support- 1.0800 and 1.0760 Resistance- 1.0840 and 1.0870.

GOLD: For today, 1900 is the immediate support level, followed by 1895. If the metal breaks below 1895, the slump will quickly extend toward the 1882/80 marks. On the flip side, the immediate resistance near 1915/18.

The important levels to watch for today: Support- 1900 and 1895 Resistance- 1910 and 1915.

Quote of the day - Think for yourself and don’t let the market direct you. Security prices sometimes fluctuate, not based on any apparent change in reality, but on changes in investor perception- Seth Klarman.
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