Daily Market Report - Tuesday, Nov 29, 2022


Crude Oil prices traditionally have been more volatile than many other commodity or asset prices. In recent months, oil traders and investors remain concerned over rising Covid-19 cases in China, which could dent demand for oil as travel is restricted.

On Monday the oil prices started the new week on a bearish note driven by concerns about strict Covid-19 curbs in China. Meanwhile, Oil futures recovered from the previous session's lows after Eurasia Group reported that OPEC+ will "seriously consider" a production cut next week. “OPEC+ will seriously consider a new production cut at its upcoming meeting, particularly if crude prices fall much below their current level in the next week.” - Eurasia Group said.


European shares trade flat on Tuesday morning ahead of the German Inflation data. On the other hand, US stock futures extend the losses after St. Louis Fed President James Bullard said the central bank still “got a way to go to get restrictive,”.

On the earnings front, CrowdStrike and Workday are amongst those reporting the last quarter's financial results today.


Crude oil futures held the early gains on Tuesday Morning. Moving ahead to the mid of the week investors continue to follow the new updates about COVID outbreaks in China and weekly oil inventory reports.


In the currency market, the Euro's uptrend against the USD is losing momentum after the strong rally. On Monday, EURUSD hit a fresh 5-month high of 1.0495 supported by broad-based weakness in the dollar and hawkish comments from European Central Bank policymakers. European Central Bank Governing Council member Klaas Knot said on Monday, “recession not a foregone conclusion.”


The safe-haven metal rebounded back to above $1750 supported by dovish comments from the FED policymakers. Richmond Federal Reserve Bank President Thomas Barkin recently mentioned that he supports smaller interest-rate hikes ahead as the central bank moves to bring down too-high inflation. While FOMC member Bullard emphasized financial markets may be too optimistic by pricing slower rate hikes by the US central bank.

Economic Outlook

On the data front, Japan reported lower-than-expected retail sales data. The latest data showed the retail sales were 4.3% higher in October than a year earlier, below the 5.0% expected by economists.

Moving ahead today, the important events to watch:

Germany – CPI: GMT – 13.00

US – Consumer Confidence: GMT – 15.00

Coronavirus update:

Worldwide, more than 641 million people have been confirmed infected and more than 6.6 million have died. The United States has confirmed over 98 million cases and has had more than 1.07 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

The currency pair slightly retreats from the weekly highs. On the downside, the decline is more extensive, and it will be hard to rule out a retreat towards 1.0310 the 1.0280. On the upper side, 1.0500 is the key resistance zones to watch.

The important levels to watch for today: Support- 1.0300 and 1.0270 Resistance- 1.0400 and 1.0430.

GOLD: In the short-term perceptive, the immediate bias will remain bullish as long as prices are held above $1740. On the flip side, any break below $1740 then the next support near $1732 followed by the $1725 level.

The important levels to watch for today: Support- 1745 and 1738 Resistance- 1758 and 1765.

Quote of the day - I think investment psychology is by far the more important element, followed by risk control, with the least important consideration being the question of where you buy and sell - Tom Basso.

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