Daily Market Report - Tuesday, July 25, 2023


The Tech pioneers Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL) are set to release the last quarter earnings results today after the market closes. Both tech stocks ended slightly lower last week following the recent AI-driven share rally. The bullish rally is supported by AI Investments and Cloud Computing support. The two tech giants are still continuing to rebuild search engines with artificial intelligence and the imminent launch of new commercial AI tools.

Enterprise software and cloud giant Microsoft stock has risen almost 45% this year and the stock created a new 52-week high of $366 last week. The company is expected to post quarterly earnings of $2.55 per share, up 14.3% higher year over year and revenues are expected to be $55.5 billion.

Alphabet, Google's parent company expected to report earnings per share of $1.34, marking a more than 10% increase, with revenue expected to rise by 4.4% to $72.75 billion. Alphabet is expanding its AI-powered chatbot, Bard, to Europe and Brazil, marking its largest expansion since the March 2023 launch in the US and UK.


Global stock markets expect another day in green after Wall Street ended Monday on a positive note. Wall Street's main indexes rose marginally on hopes that the Federal Reserve may soon hit a pause on its interest rate-hiking cycle. Moving ahead to the North American session, the investors should closely monitor the release of the Conference Board's Consumer Confidence Index.


Crude oil futures slightly reversed from the previous session highs. Oil prices hit a fresh 3-month highs on Monday after China, the world's largest importer of crude oil pledged to ramp up policy support for its flagging economy, with a focus on boosting domestic demand and helping the ailing property market. The latest pledges came a week after data showed the country’s economic momentum slowed in the second quarter.


In the currency market, the Euro remains under pressure against the US dollar and the British pound. EURUSD dropped to a fresh weekly low of 1.1055 following the release of weaker-than-expected German IFO business climate data. The recent bearish sentiment was also fueled by the release of disappointing PMI data from the Eurozone and Germany. On the other hand, the US dollar index continues to trade with a mildly bullish tone, although the long-term direction of the USD will depend on the FOMC decision which will be released on Wednesday.


The precious metal rebounded back to above 1960 after the metal found support near the 1954 support area. As of this writing, gold price trades above $1961. Technically, the immediate outlook seems slightly neutral as the latest decline back to $1953 was met with fresh buying but supportive but If the US dollar regains upside strength again today, we could see an extension to the weakness in the metal.

Economic Outlook

On the data front, the latest PMI survey showed that private sector growth in the US slowed to a five-month low in July amid weakening services activity. The S&P Global US Services PMI dropped to 52.4 in July 2023, down from 54.4 the previous month and below market expectations of 54.0. The S&P Global US Manufacturing PMI increased to 49 in July of 2023 from a six-month low of 46.3 in June, beating forecasts of 46.2.

Moving ahead today, the important events to watch:

Canada – Manufacturing sales: GMT – 12:30

US – Consumer Confidence: GMT – 14:00

Technical Outlook and Review

Technically the overall momentum remains mixed. On the downside, 1.1050 is the crucial support area to watch. If the pair breaks below 1.1050, the slump will quickly extend toward the 1.1020/10 marks. However, considering the recent sell-off near-term pullback’s corrective in nature, So, the pair may rebound towards the 1.1130 zone, a break above this level will confirm a possible move to 1.1180/1.12.

The important levels to watch for today: Support- 1.1050 and 1.1020 Resistance- 1.1130 and 1.1180.

GOLD: For today the resistance stays above 1973, and a break above this exposes the metal to the 1982/88 levels. On the flip side, the decline is more extensive, and it will be hard to rule out a retreat towards 1954 again. If the metal breaks below 1954/53, the slump will quickly extend toward the 1948/47 mark.

The important levels to watch for today: Support- 1953 and 1948 Resistance- 1970 and 1974.

Quote of the day If I have positions going against me, I get right out; if they are going for me, I keep them Risk control is the most important thing in trading. If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you can always get back in. - Paul Tudor Jones.
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