Market Reports by GulfBrokers - 2023

Shares of the home furnishings and décor e-tailer Wayfair (NYSE: W) retreats almost 10% after the stock spiked more than 50% from the last Thursday’s closing. The stock dropped another 4% in midday U.S. trading Wednesday While the stock regained some of its vitality before the end of the day after the recent correction.

However, Investors continued to show buying interest in Wayfair shares in the coming days, following the company’s recently announced plans to drive cost efficiencies by cutting 1,750 employees. The company said the reduction of 1,750 employees - including 1,200 in corporate positions - will save about $750 million a year. The new layoffs come just months after the online furniture retailer cut 870 jobs last August.

“The changes announced today strengthen our future without reducing our total addressable market, our strategic objectives, or our ability to deliver them over time” - Wayfair CEO, Niraj Shah said.

The stock also received additional buying pressure after the stock rating was upgraded by big US investment banks. J.P. Morgan analyst Christopher Horvers raised his rating on the stock to Overweight from Underweight. He changed his target for the stock price to $63 from $35. BofA analysts also upgraded Wayfair from Underperform to Buy. And they increased the price target from $30 to $65.

“We are upgrading Wayfair to Overweight from Underweight given a positive shift in market share trends and management’s newfound commitment to controlling expenses/investments” - JP Morgan said.

Wayfair(W) short-term technical outlook​

In the short-term, if the stock continues the short-term bullish momentum, then the immediate resistance above $60 breaks and closes above this resistance level then expects the market to zoom up to $65.50 and $73/75. On the downside, the crucial support remains the previous session low of $50, in case the stock break this area, below which the slide could further get extended towards the $44/43 area.

HASH


Read more - https://gulfbrokers.com/en/wayfair-stock-halt-impressive-multi-day-winning-streak
 
The king dollar reached a 2-decade high in September 2022 but since then, the US dollar has lost over almost 6% of its value on shifting expectations for US monetary policy. The falling value of the US dollar supported other currency pairs and precious metal to regain bullish momentum.

The next two days are expected to be an incredibly busy trading session for USD as the US will release the latest durable goods orders and GDP data on Thursday followed by US Personal Consumption Expenditures (PCE) Price Index data on Friday. The gross domestic product growth for the final quarter of 2022 is expected to come while the Durable goods orders are forecast to rise by 2.5% in December.

EQUITIES

US stock futures traded higher during the early European session on Thursday after the EV maker Tesla reported better-than-expected profits in the latest quarter. "Pretty difficult recession this year," but demand for Tesla vehicles "will be good despite probably a contraction in the automotive market as a whole", - Tesla CEO Elon Musk said.

OIL

Crude oil futures recovered and ended slightly higher on Wednesday after data showed a lower-than-expected draw in U.S. crude stockpiles. U.S. Energy Information Administration (EIA) data showed a 533,000-barrel increase last week despite forecasts for a 1-million-barrel gain.

CURRENCIES

In the currency market, Euro remains one of the strongest currency pairs of this month as investors continue to price in another two consecutive 50 bps interest rate hikes by the European Central Bank (ECB). Meanwhile, the GBPUSD remains reasonably supported near 1.2300- helped largely by the dollar's soft performance across the board.

GOLD

The precious metal extends gains on a weaker dollar. The strong upside momentum is driven by the hope that the Federal Reserve (Fed) will announce a smaller increase in interest rates at its meeting in February. For today, the main drivers for the precious metal remain the movement of the US dollar and US GDP data.

Economic Outlook

On the data front, the Bank of Canada (BoC) raised interest rates by another 25 basis points (bps) on Wednesday and signal that it would likely stop raising interest rates. The effects of higher interest rates are expected to bring CPI inflation down to around 3% in the middle of this year – the central bank said.

Moving ahead today, the important events to watch:

Canada – Durable goods orders: GMT – 13.30

US – GDP: GMT – 13.30

Coronavirus update:

Worldwide, more than 672 million people have been confirmed infected and more than 6.74 million have died. The United States has confirmed over 103 million cases and has had more than 1.129 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
For today, the immediate support for the Euro stands near the level of 1.0850. On the flip side, the first resistance at 1.0930 any break above this level will open 1.0960/70 minimum.



The important levels to watch for today: Support- 1.0870 and 1.0850 Resistance- 1.0930 and 1.0960.

GOLD: Technically, the medium-term trend remains supportive while If the US dollar regains upside strength this week we could see a pullback in the precious metals. For this week, the first nearest support level is located at 1930. If it breaks below this level, it will head towards the next support level, located near 1925 then 1918. On the flip side, the first immediate resistance level for the metal is 1942, then the stronger resistance is 1950/55.



The important levels to watch for today: Support- 1930 and 1918 Resistance- 1940 and 1955.

Quote of the day - “Speculation is an effort, probably unsuccessful, to turn a little money into a lot. Investment is an effort, which should be successful, to prevent a lot of money from becoming a little.” – Fred Schwed.
Read more - https://gulfbrokers.com/en/daily-market-report-606
 
Wall Street's main indexes ended in positive territory on Thursday supported by better-than-expected fourth-quarter US GDP numbers and jobless claims data. The GDP data showed US gross domestic product grew at a better-than-expected 2.9% annual rate in the final quarter of 2022, stronger than the consensus forecast for 2.5% growth.

Moving ahead, the focus shifted to key US personal consumption expenditures (PCE) data which is set to be released later today. PCE index, which measures inflation, the PCE inflation data would provide clues on how aggressive the Federal Reserve's monetary tightening could be in next week's FOMC meeting. Investors and traders hoping for PCE data signalling that the Fed might avoid more rate hikes that might go too far in slowing the economy and bringing on a recession.

EQUITIES

European stocks traded mixed on Tuesday as investors looked towards the release of the U.S Core PCE Price Index - the Fed's preferred inflation gauge data and comments from ECB president Christine Lagarde. On the other hand, Asian shares edge higher after Wall Street benchmarks ended on Thursday on a high note.

OIL

Crude oil futures trade near the weekly highs, the upside momentum boosted by the weaker dollar and amid hopes of continued demand recovery in top crude importer China. The latest reports say that the number of Covid-related deaths and severe cases in China is now 70% lower than peak levels in early January.

CURRENCIES

In the currency market, the US dollar, which is also often seen as the ultimate safe-haven currency slightly rebounded from the 8-month lows. Meanwhile, the euro regained momentum against the greenback and British pound during the early European session ahead of European Central Bank (ECB) President Christine Lagarde's speech.

GOLD

The precious metal struggling to regain upside momentum following the release of stronger-than-expected US economic data. However, the overall sentiment remains bullish as investors and market participants expect that the robust US GDP data supports the argument that the Fed could still deliver a soft landing.

Economic Outlook

On the data front, Initial jobless claims in the United States fell last week, according to a report from the Labor Department. The number of claims dropped from 6,000 to a seasonally adjusted 186,000. Durable goods orders for December also impressed with a 5.6% gain, more than double expectations.

Moving ahead today, the important events to watch:

Canada – PCE inflation data: GMT – 13.30

US – Michigan consumer sentiment: GMT – 13.30

Coronavirus update:

Worldwide, more than 672 million people have been confirmed infected and more than 6.74 million have died. The United States has confirmed over 103 million cases and has had more than 1.129 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
For today, the first nearest support level is located at 1.0850. In case it breaks below this level, it will head towards the next support level which is located near 1.0800. On the upper side, 1.0910 will act as an immediate and strong hurdle while 1.0940 will be a critical resistance zone.



The important levels to watch for today: Support- 1.0850 and 1.0800 Resistance- 1.0910 and 1.0940.

GOLD: Today as long as the metal trades above the 1920 level, the medium-term uptrend will remain in place. On the upper side, the first resistance is located around 1930/34, a break above this level will confirm a possible move to 1942 then 1948. On the downside, 1918 is the immediate support level, followed by 1910. Further selling pressure will intensify only if the metal break below 1910/08 levels.



The important levels to watch for today: Support- 1918 and 1910 Resistance- 1935 and 1948.

Quote of the day - “The majority of short-term trading results are just random. In the long term, the money ends up with those that can trade and manage risk.”
Read more - https://gulfbrokers.com/en/daily-market-report-607
 
Global markets ended last week on a positive note as prospects of slowing economic growth fanned hopes that global central banks may go slow on interest rate hikes. On Friday, the latest PCE inflation data showed the Federal Reserve’s preferred inflation gauge eased further in December, marking its smallest annual rise since October 2021.

Moving ahead, markets are expected to be volatile this week, with investors closely watching economic data and global events. The inventors are anxiously awaiting Wednesday’s decision by the Federal Reserve on interest rates along with ECB and BOE decisions on Thursday. On the other hand, investors should also closely monitor the release of the US jobs report on Friday. The upcoming data on the jobs market could help investors determine how the Federal Reserve will move ahead with its interest rate policy

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Apple, Microsoft, Alphabet, Ford, Snap, Starbucks and Meta.

GOLD

The precious metal surged to a fresh 9-month high last week boosted by the weak dollar. However, the gold price had a strong retreat on Thursday after lagging to almost 1950. This week's FOMC meeting outcome is expected to be a pivotal moment for precious metals, as the Fed could signal a shift toward more accommodative policies.



For this week, considering heavy volatility there are chances the metal can rally back to above the key resistance of 1950. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 1910 and 1895 if the metal breaks below 1915.

DOLLAR INDEX

Finally, positive US GDP data and strong weekly jobless claims numbers gave the DXY bulls a push. While the overall momentum remains bearish due to prospects of a less aggressive tightening from the Federal Reserve. Fundamentally the greenback is expected to be extra volatile this week due to a busy economic calendar and all eyes remain on Wednesday’s FOMC meeting outcome.



The technical scenario is absolutely bearish after the last couple of weeks sell-off. While considering the recent bearish momentum the USD may find a strong support near the 101 and 100.80 areas. On the upper side, in the short-term the first immediate resistance at 102.40 followed by 102.90/103.

EURUSD

EURUSD traded with a bid tone for the entire last week, with some weakness seen only on Thursday and Friday after the King dollar regained some upside momentum. This week, Euro traders and investors are focused on possible measures and changes that the European Central Bank may undertake in the February meeting.



The currency pair remained in a range above 1.0800 last week, and the initial bias remains bullish for the upcoming week. The key resistance is located for the pair around 1.0930, a break above this level will confirm a possible move to 1.1000 and 1.1030. On the downside, any meaningful pullback now seems to find some support near the 1.0800 zones, below which the slide could further get extended towards the 1.0760/30 regions.

DOW JONES

Dow Jones and other US stock indexes closed broadly higher Friday as investors welcomed encouraging economic data. The US GDP growth surpassed expectations in the fourth quarter and weekly unemployment claims fell to a nine-month low. That apart, solid earnings reports from Tesla (NASDAQ: TSLA) and American Express (NYSE: AXP) also boosted stock prices. For Dow this week, Q4 earnings remain in focus as investors parse the latest results to understand how inflation is affecting businesses and consumers.



This week, the key resistance is located for the index around 34,400, a break above this level will confirm a possible move to 34,900/35,000. On the downside, any meaningful pullback now seems to find some support near the 33,500 zones, below which the slide could further get extended towards the 33,250 and 33,000 regions.

Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-65
 
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.

EQUITIES

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.

OIL

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.

CURRENCIES

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.

GOLD


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

EURUSD:
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.
Read more - https://gulfbrokers.com/en/daily-market-report-608
 
The Euro to Pound exchange rate continues to move sideways ahead of monetary policy decisions by the Bank of England (BoE) and the European Central Bank (ECB) on Thursday. The central banks are expected to hike rates by 50 bps this week. However, the recent Eurozone and UK Inflation numbers have certainly been encouraging. The currency pair's future direction depends upon the central bank’s view on the future path of interest rate changes.

EURGBP traded higher and held gains on Tuesday morning even as data from the German retail sales and GDP fell short of forecasts. Meanwhile, the Euro and GBP were lower in late afternoon trading Tuesday against a resurgent U.S. dollar after tumbling in the previous session, which benefited from safe-haven demand on renewed worries about higher rates and a recession in Europe. US Federal Reserve policymakers will meet to make their decisions on interest rates and monetary policy on Wednesday before the BOE and ECB decision.

EURGBP weekly technical outlook​

EURGBP has been in a tight range in the past few days. As of this writing, the currency pair recovered back to above 0.8800. On the upper side, the key resistance is located for the pair around 0.8850, a break above this level will confirm a possible move to 0.8890 and 0.8920. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 0.8760, below which the slide could further get extended towards the 0.8730/20 regions.

euraud


Check the original article here - https://gulfbrokers.com/en/eurgbp-continues-to-trade-sideways-ahead-of-super-thursday
 
The US dollar slides while US stock futures trade mixed on Wednesday morning as markets wait to hear from the US Federal Reserve on its latest interest rate decision. The US central bank is expected to raise the fed funds rate by 25bps today. The FOMC Statement is set to be released at 19.00 GMT. Along with this release will see the FED chair Powell Conference 30 minutes after at 19.30.

During the last week, the US economic data showed that the Fed-preferred core PCE inflation measure in the US slowed to an over-one-year low in December. Therefore, the investors and market participants anticipate a less aggressive policy outlook. However, US FED chair Powell's speech should be more closely scrutinized for language and tone as he signals the FED's direction for the coming months.

EQUITIES

Wall Street ended on a positive note last month boosted by better-than-expected US economic data and mixed fourth-quarter earnings results from big US firms. On the earnings front, the Facebook parent Meta Platforms (NASDAQ: META) is scheduled to announce its latest quarterly earnings today after the markets close.

OIL

Crude oil prices recovered from the previous session's sell-off, although the upside was limited after the API data showed the US Crude Oil Inventories unexpectedly rise last week. Moving ahead, oil investors should closely monitor the release of weekly US inventory data from the US Energy Information Administration.

CURRENCIES

In the currency market, New Zealand and the US dollar were the main losers among major currencies in early European trade on Wednesday. The Kiwi became under pressure following the release of a weak New Zealand employment report. The jobs data showed the unemployment rate in New Zealand increased to 3.4% in Q4 of 2022 from 3.3% in Q3, marking the highest reading in five quarters.

GOLD

The precious metal traded flat on Wednesday morning following the previous session's strong rebound as investors await the Fed's interest rate decision to determine the next direction because as we know gold is highly sensitive to rising interest rates since higher rates dent gold's appeal as they increase the opportunity cost of holding non-yielding bullion.

Economic Outlook

On the data front, UK, Eurozone, and Germany reported better-than-expected manufacturing PMI data on Wednesday. The UK manufacturing PMI was revised slightly higher to 47 in January, from a preliminary estimate of 46.7. Eurozone Manufacturing PMI was confirmed at 48.8 in January 2023, up from 47.8 in the previous month.

Moving ahead today, the important events to watch:

US – ADP employment report: GMT – 13.15

US – ISM manufacturing PMI: GMT – 15.00

Us – FOMC interest rate decision and statement: GMT – 19:00

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

EURUSD:
The currency pair rebounded back to above 1.0880 during the European session. For today, the first resistance is located for the pair at around 1.0900, a break above this level will confirm a possible move to 1.0930/50.



The important levels to watch for today: Support- 1.0830 and 1.0800 Resistance- 1.0900 and 1.0950.

GOLD: The precious metal needs a clear break of $1936 to move further upside 1945/48. On the flip side, a breakdown through $1915 would negate that bias and suggest a test of the $1900 support region again.



The important levels to watch for today: Support- 1915 and 1900 Resistance- 1936 and 1948.

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-609
 
Global markets ended on a positive note last month boosted by strong economic data from the US and China. Precious metals and currency pairs like Euro and GBP prices reached a fresh multi-month high while Bitcoin, the world’s largest digital currency by market value finally regained strong bullish momentum and surged almost 40% in January.

One of the other reasons behind the market's rebound on the hope that the Fed and other central banks may slow the pace of monetary tightening as inflation starts to cool off. Moving ahead, February month started on a mixed note as investors remained cautious ahead of big economic releases and earnings results.

Check the below technical analysis for levels of support and resistance of the important assets, specifically Bitcoin and Gold.

King Dollar: DXY​

The technical scenario is bearish due to the markets thinking that the Federal Reserve would be less restrictive in their monetary policy in the coming months. While considering the recent bearish momentum the USD may find strong support below 101. On the upper side, a close above 102.60 is now needed to ease bearish pressure while bulls need to see a close above 102.80 to shift focus back to the 104 regions.



EURUSD​

The sustainability of any further gain in the currency pair in the coming days will largely depend on how the US dollar behaves. The main trend is up according to the weekly chart. A trade through 1.0950 will signal a resumption of the uptrend. A move through 1.0800 will change the main trend to down, a further breakout of 1.0760 can lead the pair towards 1.0700 and 1.0650 levels.



Bitcoin: BTC/USD​

The technical scenario is absolutely bullish. While considering the recent bullish momentum the crypto pair may find strong resistance above 25,200, the high of August 2022. On the downside, rejection, and pullback from the resistance allow for a dip towards 23,400, with 21,500 and 20,300 forming additional downside targets.



Gold and Silver​

From a technical perspective, gold is maintaining a positive bias according to the monthly chart. If the bullish momentum continues then the next key supply area to watch is $1950 then $1970. On the downside, If the metal fails to extend the rally and retreats back below $1900 then the slump will quickly extend toward the $1865/60 mark.




Silver price struggles for a firm direction after reaching a fresh 10-month high. An extension of the ongoing price surge is expected to be slowed down again near the upper trend line, which crosses the 24.50/60 range. On the other hand, if the metal consolidates its gains by declining, support could be provided by the 23.00 mark, before the 22.40 and 21.60 levels are reached.


Read more here with charts - https://gulfbrokers.com/en/monthly-technical-analysis-february-2023
 
Markets taking a deep breath Thursday morning and waiting for the next round of the central bank’s policy meetings. Today, Investors and traders will closely monitor the release of the European Central Bank and Bank of England monetary policy decisions, where markets are expecting the central banks are widely expected to raise interest rates by 50 basis points.

During the previous session, the Federal Reserve raised interest rates by 50 basis points, in line with forecasts. The move takes the benchmark rate to 4.75%, as the Fed continues to battle high inflation. "Over the past year we have taken forceful actions to tighten the stance of monetary policy," Fed Chair Jerome Powell said.

EQUITIES

Asian shares advanced on Thursday after the U.S. Federal Reserve signaled that this tightening cycle may be nearing its end is growing. US stock futures slightly reversed from the weekly highs on Thursday morning, shifting investor focus to earnings from big technology companies, including Apple, Amazon and Alphabet, later in the day.

OIL

Crude oil futures still struggling to find strong upside momentum despite a weaker US dollar after the OPEC+ committee recommended keeping crude production steady. On the other hand, the EIA crude inventory data showed the US crude inventories jumped by 4.14 million barrels last week, much more than market expectations of a 0.376-million-barrel rise.

CURRENCIES

In the currency market, the euro and British pound pause the rally ahead of the central bank’s decision. Meanwhile, commodity-linked currency pairs like the Australian dollar, New Zealand and Canadian dollar extend gains on Thursday after the price of gold has broken out to a fresh monthly high.

GOLD

The precious metal hit a fresh 10-month high on Thursday morning driven by FOMC Chairman Jerome Powell's dovish remarks. On Wednesday, Federal Reserve Chair Powell said during a press conference that the disinflationary process has begun.

Economic Outlook

On the data front, the US released a disappointing ADP employment report and ISM manufacturing data on Wednesday. ADP national employment report showed that the US added 106,000 private-sector jobs in January, down from December’s gain of 253,000 jobs. The ISM Manufacturing PMI fell to 47.4 in January, below market forecasts of 48.

Moving ahead today, the important events to watch:

UK – BOE interest rate decision and statement: GMT – 12.00

Eurozone – ECB interest rate decision and statement: GMT – 13.15

US – Jobless claims: GMT – 13:30

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

EURUSD:
For today, If the bullish momentum continues then the next upside level is to watch at 1.1060 and 1.1090. On the other hand, the next immediate support prevails at 1.0930, a further breakout of 1.0930 can lead the pair towards 1.0880/70 levels.



The important levels to watch for today: Support- 1.0980 and 1.0930 Resistance- 1.1030 and 1.1065.

GOLD: The precious metal trades steady above 1950. If the bullish momentum continues, then the next upside level is to watch 1965 and 1972. On the downside, any meaningful pullback now seems to find some support near the 1950 zones, below which the slide could further get extended towards the 1942/35 regions.



The important levels to watch for today: Support- 1950 and 1945 Resistance- 1960 and 1968.

Quote of the day - “The vast majority of people compete in a time horizon that’s very near dated. There are many fewer investors who are thinking out a decade and beyond.” Matthew McLennon.
Read more - https://gulfbrokers.com/en/daily-market-report-610
 
US Federal Reserve, European Central Bank and Bank of England signaled that they would continue to raise them at their next meeting. Today, investors and traders will pay close attention to the US January Nonfarm Payrolls report. Nonfarm payrolls measure the number of US workers excluding farm workers and some government workers, as well as private household employees.

The Labor Department's nonfarm payrolls report is expected to show growth, with economists forecasting a headline print of 185,000 new jobs, compared with 223,000 in December. From an unemployment perspective, the jobless Rate is expected to inch higher to 3.6%. A strong employment number might cause Fed officials to consider raising further its key interest rates in a move to curb inflation.

EQUITIES

Wall Street come under pressure following the release of disappointing earnings results from the big tech giants Apple, Amazon and Alphabet. On Friday morning, US futures were in a cautious mood on Friday ahead of the US employment report, It’s going to be a volatile journey today especially the New York session.

OIL

Crude oil prices settled lower on Thursday due to mounting fears of a global economic slowdown and Fed Chair Powell reiterated the need for restrictive monetary policy for some time to bring inflation down. One of the other reasons behind the bearish sentiment after weekly U.S. government inventory data showed the latest crude stock draw this week.

CURRENCIES

In the currency market, the dollar index, which tracks the greenback against a basket of six major rivals regained upside momentum as Investors took that as a sign the U.S. central bank is on track to resume hiking interest rates next month. While the euro and GBP recovered from the early session lows supported by hawkish comments from ECB and BOE policymakers.

GOLD

The precious metal remains under pressure following the previous session's sell-off. As of this writing, the metal hovers near the $1910 support area. Moving ahead, global cues such as the FED's stance, trends in dollar strength and the US employment report are expected to drive investors' sentiments in the remaining weeks of this month.

Economic Outlook

On the data front, the European Central Bank and Bank of England raised key rates by 50 bps in February monetary policy meeting, as expected. ECB President Christine Lagarde refrained from committing to additional rate increases after March and noted that inflation risks are now more balanced. BoE Governor Andrew Bailey noted that they will re-evaluate the policy if the economy evolves in line with their central forecasts.

Moving ahead today, the important events to watch:

US – Employment report: GMT – 13.30

US – ISM services PMI: 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

EURUSD:
For today, the immediate support for the Euro stands near the level of 1.0860 then 1.0830. On the flip side, the first resistance is at 1.0930, any break above this level will open at 1.0960/70 minimum.



The important levels to watch for today: Support- 1.0860 and 1.0830 Resistance- 1.0930 and 1.0970.

GOLD: For today, the key support remains for the metal below 1900, a break below this level will confirm a possible move to 1892 then 1880. On the upper side, the key resistance is located around 1918/20, a break above this level will confirm a possible move to 1932 and 1938 minimum.



The important levels to watch for today: Support- 1900 and 1892 Resistance- 1918 and 1932.

Quote of the day - “Short-term trading is very time-consuming. That is why even “successful” short-term traders can easily have negative real ROI.” - Robert Rolih.
Read more - https://gulfbrokers.com/en/daily-market-report-611
 
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