Daily Market Report - Tuesday, Oct 11, 2022


EURUSD opens the week broadly lower. As of this writing, EURUSD hovers near 0.9700. The currency pair got an early lift during the last week but reversed from the early gains after the US dollar regained bullish momentum. Moving ahead, again the trend of the euro would largely depend on the trend of the dollar index and updates on the Russia -Ukraine war.

Technically the current price action signals suggest that a medium-term bearish trend remains intact. However, the currency pair can rise if it rebounds back to above the 0.9800 level again, any break and closes above this level the next levels to watch are 0.9910 and 1.0000. Nevertheless, if it continues to fall, the slump will quickly extend toward the 0.9630/00 mark.


US stock futures and global stocks remain under pressure due to heightened geopolitical tensions and rising risks of a recession worldwide. Meanwhile, JPMorgan CEO Jamie Dimon warned that the US and global economy are likely to enter recession by the middle of next year, while the IMF and World Bank saw rising risks of a global slowdown.


Crude oil futures extend the decline on Tuesday morning, pressured by expectations of weaker global demand and by U.S. dollar strength ahead of Wednesday’s Federal Open Market Committee (FOMC) Meeting Minutes and Thursday’s US inflation data for September.


In the currency market, the US Dollar Index, which measures the greenback’s value against the basket of six major currencies almost flat on Tuesday, but the Index remained in favour as a safe haven currency as investors anticipate the US central bank will raise interest rates faster and further than other developed countries.


The safe-haven metal trading marginally lower on Tuesday and the upside pressure clearly weakening amid a solid ceiling in place, the near-term bias points to precious metal weakness in the rest of the week ahead, when volatility is likely to be higher than usual due to soaring inflation would prompt central banks to tighten monetary policy abruptly.

Economic Outlook

On the data front, the UK reported the latest employment report. The unemployment rate for June to August 2022 decreased by 0.3 percentage points in the quarter to 3.5%, the lowest rate from December to February 1974.

Coronavirus update:

Worldwide, more than 621 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 96 million cases and has had more than 1.06 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

Technically the overall momentum remains bearish. For today, the first nearest support level is located at 0.9670. In case it breaks below this level, it will head towards the next support level which is located near 0.9650/40. However, a fresh demand for the pair can be anticipated once the Euro rises above the 0.9750 resistance.

The important levels to watch for today: Support- 0.9670 and 0.9650 Resistance- 0.9720 and 0.9750.

GOLD: For today, $1660 remains the key support level. If the metal breaks below $1660, the slump will quickly extend toward the $1650/45 mark. On the flip side, the first resistance at $1774 any break above this level will open at $1780/85 minimum.

The important levels to watch for today: Support- 1660 and 1655 Resistance- 1674 and 1680.

Quote of the day - "Stocks are simple. All you do is buy shares in a great business for less than the business is intrinsically worth, with management of the highest integrity and ability. Then you own those shares forever." - WARREN BUFFETT.

Read more - https://gulfbrokers.com/en/daily-market-report-562