Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

The US dollar pairs remain the centre stage of attention. The dollar index, which tracks the U.S. currency against six major peers reversed the early gains. As of this writing, the index slightly retreats back to below 109.50. During the previous session, the greenback rebounded strongly and rise back to above 110 following the release of stronger-than-expected US inflation data. Moving ahead, the key resistance remains for the index above 110, a break above this level will confirm a possible move to 110.30/60. On the downside, any meaningful pullback now seems to find some support near the 109 zones, below which the slide could further get extended towards the 108.40/00 region.

EQUITIES

US futures and European shares slightly recovered from the previous session's sell-off while overall momentum remains bearish as inflation data continued to weigh on sentiment and expectations of an even-more aggressive Federal Reserve. Moving ahead to the North American session, the investors should closely monitor the release of the US PPI report.

OIL

Oil futures remain under pressure after the release of the US API inventory report. The API inventory data showed the US inventories unexpectedly rose by 6 million barrels last week. Moving ahead to the North American session, the oil traders should closely monitor the release of the EIA inventory report.

CURRENCIES

In the currency market, the British pound recovered from the early session lows, currently trading above 1.1540. On the other hand, the EURUSD fell again back to below 1.0000. The strong bearish sentiment is driven by the dollar strength and concerns about the economic fallout from the Ukraine crisis.

GOLD

The safe-haven metal remains under pressure after the strong US inflation numbers reinforced bets for aggressive Federal Reserve rate hikes. The expected trading range for gold today is between 1680 support and 1720 resistance. At the time of writing, the precious metal trades above $1700.

Economic Outlook

On the data front, the Bureau of Labor Statistics released the latest Consumer Price Index figures. The data showed the annual Consumer Price Index printing at 8.3 percent, higher than the 8.1 percent predicted.

Moving ahead today, the important events to watch:

US – PPI: GMT – 12.30

US – EIA crude inventories: GMT – 14.00

Coronavirus update:

Worldwide, more than 608 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 95 million cases and has had more than 1.05 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 0.9930. On the flip side, the first resistance is at 1.0040, any break above this level will open at 1.0080/90 minimum.



The important levels to watch for today: Support- 0.9970 and 0.9930 Resistance- 1.0040 and 1.0080.

GOLD: Technically the overall momentum remains bearish, the key support for the metal stands near the level of $1690. On the upside, 1710 will act as an immediate and strong hurdle while 1720 will be a critical resistance zone because above this, bulls are likely to dominate.



The important levels to watch for today: Support- 1690 and 1680 Resistance- 1710 and 1720.

Quote of the day - The best traders have no ego. You have to swallow your pride and get out of the losses.

Read more - https://gulfbrokers.com/en/daily-market-report-555

 

[syamfx2020]

Today the US retail sales will be the highlight, the U.S. Census Bureau releases its retail sales report for the month of August which will give an indication into the strength of the US economy. The data will be announced at 12:30 GMT. Retail sales in the US indicate the consumer demand for finished goods. The Retails Sales for August, expected to remain unchanged at 0.0%.

EQUITIES

US futures notched up small gains on Thursday morning ahead of US retail sales report. However, the overall market sentiment is expected to remain under pressure in the near term as investors price in the adoption of a more hawkish stance from the Fed.

OIL

Oil futures holding the weekly gains even though official data showed an increase in U.S crude inventories last week. The latest EIA inventory data showed the oil inventories rose by 2.442 million barrels in the week ended September 9th.

CURRENCIES

In the currency market, the US dollar index remains in demand as the rising inflation continue to encourage safe-haven demand. EURUSD slightly recovered from the early lows while GBPUSD struggled to find upside momentum.

GOLD

The safe-haven metal extended the losses on Thursday weighed down by a rebound in the US dollar and expectations of further interest rate hikes from the Federal Reserve to tame high inflation. As of this writing, the metal trades below $1690.

Economic Outlook

On the data front, Australia reported the latest employment data. The data showed the unemployment rate ticked up from 3.4% to 3.5%, above the expectation of 3.4%. On the other hand, New Zealand's gross domestic product (GDP) rose by 1.7 per cent in the June quarter, following a 0.2 per cent fall in the March 2022 quarter.

Moving ahead today, the important events to watch:

US – Retail sales: GMT – 12.30

US – Philly Fed Manufacturing Index: GMT – 12.30

US – Jobless claims: GMT – 12.30

Coronavirus update:

Worldwide, more than 608 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 95 million cases and has had more than 1.05 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: Technically the overall momentum remained bearish for the pair after the bulls failed to extend the rally. In the short term, if the price breaks below 0.9950 it would open doors toward 0.9930/00. On the bullish side, the short-term resistance stays above 1.0030, and a break above this exposes the pair towards the 1.0080/90 level.



The important levels to watch for today: Support- 0.9930 and 0.9900 Resistance- 1.0030 and 1.0090.

GOLD: Technically the overall momentum remains bearish. For today, the key support area is around 1680. On the upper side, the short-term resistance at 1695 any break above this level will open 1700 then 1706.



The important levels to watch for today: Support- 1680 and 1672 Resistance- 1695 and 1706.

Quote of the day - “When it comes to investing, we want our money to grow with the highest rates of return, and the lowest risk possible. While there are no shortcuts to getting rich, there are smart ways to go about it.” – Phil Town.

Read more - https://gulfbrokers.com/en/daily-market-report-556

 

[syamfx2020]

Global markets ended last week lower as investors worried about signs of slowing global growth, rising inflation, the prospects for a more aggressive move by major central banks and signs of a global recession are growing by the day.

This week Central Banks completely dominate markets with the FED, BOE and BOJ all conducting meetings. The key focus, however, will remain on the most anticipated Federal Reserve’s interest rate decision and statement. The Federal Reserve will begin a two-day meeting on Tuesday with expectations mounting that they will lift rates by at least 0.75%.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Costco, KB Home and H.B. Fuller.

GOLD

The precious metal plunged to a fresh 2-year low of $1654 last week after the latest stronger US consumer inflation figures lifted bets that the Federal Reserve will get more aggressive to cool price pressures. The metal has already been in a downtrend for the past few months. Aggressive Fed rate hike bets and relentless USD buying continued weighing heavily on the commodity.



For this week, technically the current price action signals suggest that the bearish trend remains intact. On the downside, the decline is more extensive, and it will be hard to rule out a run towards $1650 and $1640 if the bearish momentum continues. On the upper side, $1683/90 is the key resistance zones to watch, if the pair breaks and close above this area then the next resistance level to watch is around $1700/05.

DOLLAR INDEX

The dollar index rallied and remained in demand last week as investors positioned ahead of the FED meeting. The upside momentum was also largely fueled by the hotter-than-expected US CPI data. The FED decision is the key release this week for Dollar. However, traders will also be watching the latest US PMI data which is set to be released on Friday.



Technically, the overall movement has remained bullish so far during the last week. This week, if the bullish momentum continues the next upside levels to watch 110/110.30 then 110.80. On the downside, any meaningful pullback now seems to find some support near the 109.20 zones, below which the slide could extend further towards the 108.80/30 regions.

EURUSD

EURUSD ended mixed last week as investors largely stayed cautious and refrained from making significant moves ahead of the FED meeting. Technically, the short-term trend remains supportive and the pair has room to climb as it flirts near the partity level while If the US dollar regains further upside strength this week, we could see an extension to the weakness in the euro. This week the main drivers for the currency pair remain the movement of the US dollar.



This week, the first resistance is located around 1.0090 then 1.0200, a break above 1.0200 will confirm a possible move to 1.0280 and 1.0340. On the downside, the first nearest support level is located at 0.9930. In case it breaks below this level, it will head towards the next support level which is located at near 0.9900 then 0.9860/40. In the long term, watch for weekly closing above 1.0280 or below 0.9900 area, that will give a larger confirmation of direction in the long term.

DOW JONES

Dow Jones collapses below the psychological level of 31,000 last week amid reports that the US Federal Reserve could raise interest rates by as much as 0.75% this week following the release of strong US inflation data. On the other hand, the bearish sentiment was also driven by FedEx CEO’s warning of a worldwide recession. FedEx’s stock plunged more than 21% after the company reported a major slump in global shipping volumes and withdrew its full-year guidance.



For this week, the first nearest support level is located at 30,400. In case it breaks below this level, it will head towards the next support level which is located at near 30,150/00. On the upper side, If the index regains upside momentum and press back above 31,300 then the key resistance area to watch is 31,600 and 32,000.

Check out the detailed analysis with charts here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-48

 

[syamfx2020]

Gold price trades flat on Tuesday as Investors await the outcome of the US Federal Reserve meeting for pricing cues. The precious metal has been under intense selling pressure since last Tuesday after the release of hotter-than-expected US inflation data. The inflation data fueled speculation that the Federal Reserve could shoot even higher interest rates. 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.

EQUITIES

Wall Street ended higher on Monday. However, the overall momentum remains bearish amid lingering concerns over the aggressive central bank tightening to bring inflation back under control. Moving ahead to the North American session, the traders should closely monitor the release of US building permits data.

OIL

Crude oil prices recovered from the previous session's sell-off. On Monday, the oil prices extended the losses as aggressive monetary tightening and recession fears continue to weigh on the demand outlook. Moving ahead, oil investors should closely monitor the release of weekly US inventory data from the American Petroleum Institute on Tuesday and the US Energy Information Administration on Wednesday.

CURRENCIES

In the currency market, the Japanese Yen and the New Zealand dollar were the main losers among major currencies in early European trade on Monday, extending losses as the dollar extended the gains in the hope that the Federal Reserve might consider a 75-bps rate hike this week.

GOLD

The safe-haven metal struggling to find the upside momentum. During the previous session, the metal surged to near $1680 but later retreated back to below $1670 after it failed to hold the upside momentum. As of this writing, the metal trades are above $1670.

Economic Outlook

On the data front, the minutes of the Reserve bank Board’s September meeting provide a balanced view of the outlook for policy. “Given the importance of returning inflation to target, the potential damage to the economy from persistent high inflation and the still relatively low level of the cash rate, the Board decided to increase the cash rate by a further 50basis points.” – the minutes said.

Moving ahead today, the important events to watch:

Canada – CPI: GMT – 12.30

US – Building permits: GMT – 12.30

Coronavirus update:

Worldwide, more than 612 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 95.6 million cases and has had more than 1.05 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: The currency pair rebounded back to above 1.0030 during the European session. For today, the first resistance is located for the pair at around 1.0050, a break above this level will confirm a possible move to 1.0080/90.



The important levels to watch for today: Support- 1.0000 and 0.9970 Resistance- 1.0050 and 1.0090.

GOLD: Today the gold price is supported at below $1660, any break below $1660 will open the doors to $1650/48. On the other upper side, the immediate resistance at $1680 and $1684.



The important levels to watch for today: Support- 1658 and 1650 Resistance- 1680 and 1684.

Quote of the day - Everyone has the brainpower to make money in stocks. Not everyone has the stomach. If you are susceptible to selling everything in a panic, you ought to avoid stocks and mutual funds altogether – Peter Lynch.

Read more - https://gulfbrokers.com/en/daily-market-report-557

 

[syamfx2020]

Today, the Investors and traders will closely monitor the release of the Federal Reserve’s monetary policy decision, where markets are expecting at least a 0.75% hike after surprisingly higher August inflation data, but some market participants and traders do not rule out more aggressive stance and 1% hike. Since March, the central bank has raised the benchmark funds rate by 225 basis points to control the rising inflation. The FED Monetary Policy Statement is set to be released at 18:00 GMT. Along with this release will see Fed Chair Jerome Powell’s speech 30-minutes after at 18:30.

EQUITIES

Global stocks were mostly lower on Wednesday and US stock futures hovered near the monthly lows as investors refrained from making big bets before the Federal Reserve decided to raise interest rates to control rising inflation.

OIL

Crude oil futures recovered from the previous session's losses after Russia's Putin announces partial military mobilisation. The upside momentum was also supported by the release of API crude inventory data. The data showed the US crude inventories increased by 1,035 million barrels in the week ended September 16th, 2022, below market expectations of a 2.321-million-barrel increase.

CURRENCIES

In the currency market, the EURUSD retreats back to below 0.9900 after Russian President Vladimir Putin announced a partial military mobilization in Russia during an address to the nation on Wednesday morning. Meanwhile, the US dollar continues to trade near the multi-year high against the British pound and the Euro.

GOLD

The safe-haven metal slightly rebounded back to above $1670 on Wednesday Morning while the overall momentum remains bearish due to the strong dollar and rising US yields. Moving ahead, the Fed policy decision will be key to deciding the further price movement for metals.

Economic Outlook

On the data front, Canada’s inflation rate continued to ease in August, according to new figures from Statistics Canada. Canada’s annual inflation rate slowed to 7% in August of 2022, from 7.6% in July and below market estimates of 7.3%.

Moving ahead today, the important events to watch:

US – Existing home sales: GMT – 14.00

US – EIA crude inventories: GMT – 14.30

US – FOMC interest rate decision and statement: GMT – 18.00

Coronavirus update:

Worldwide, more than 612 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 95.6 million cases and has had more than 1.05 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: The currency pair retreated back to below 0.9900 on Wednesday morning. On the downside, 0.9860 will act as an initial cushion, any break below this level will open doors to 0.9820/00. On the upper side, 0.9950 will act as an immediate and strong hurdle while 1.0000 will be a critical resistance zone because above this, bulls are likely to dominate.



The important levels to watch for today: Support- 0.9880 and 0.9860 Resistance- 0.9950 and 1.0050.

GOLD: The precious metal needs a clear break of $1680/82 to move further upside to $1695/1700. On the flip side, a breakdown through $1660 would negate that bias and suggest a test of the $1650/45 support region.



The important levels to watch for today: Support- 1660 and 1645 Resistance- 1682 and 1695.

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-558

 

[syamfx2020]

Shares of the largest coffee chain Starbucks Corporation (NASDAQ: SBUX) remain steady despite bearish sentiment prevailing in the market. The stock has fallen more than 25% in the first half of 2022 due to aggressive interest rate hikes and record-high inflation. While the stock has managed to recover significant ground following its bearish sentiment earlier this year. The stock price reached a new six-month high of $93 this month.

Starbucks 2022 Investor Day: Everything you need to know​

Last week the company unveiled an ambitious growth plan at its investor day in Seattle. The company plans to spend roughly $450 million to put new equipment in its North America locations to speed up service and assist baristas to make the increasingly complex and customized orders they receive. The plan also includes aggressive growth targets, with the stated intent to open thousands of new stores across the U.S. and China over the next eight years. The company expects to have 55,000 Starbucks locations across 100 different markets by the year 2030.



"Guided directly by our partners, we have already begun to take action on an inspired roadmap to build the future of Starbucks, all while staying true to our mission of uplifting communities through a shared love for coffee and further extending our coffee leadership and innovation," interim CEO Howard Schultz said.

Starbucks Q3 earnings review​

The coffee giant released its third-quarter earnings results on Tuesday, August 02. Starbucks Q3 earnings and revenues beat estimates. The company's revenue rose 9% to $8.2 billion in Q3. Starbucks also opened 318 net new stores in the three-month period, growing its store count to just shy of 35,000 locations. During the third quarter, global comparable store sales rose 3% while comparable-store sales in China tumbled 44% year over year in Q3.

$SBUX technical outlook​

Technically the overall momentum remains bullish for the last 3 months. As of this writing, the $SBUX trades at $91. In the short-term, if the stock continues the bullish momentum, then the immediate resistance above $94 breaks and closes above this resistance level then expects the market to zoom up to $101. A move above the $101 mark is likely to spark a fresh wave of rallies for the stock, which can push its price beyond the $110 mark. On the downside, any meaningful pullback now seems to find some support near the $86 zones, in case the stock breaks this area, below which the slide could further get extended towards $80.

Read more here - https://gulfbrokers.com/en/starbucks-stock-holds-steady-despite-market-sell-off

 

[syamfx2020]

The Japanese Yen regained strong momentum against the other currency pair after Japan’s top currency diplomat Masato Kanda said they had intervened in the foreign exchange market to limit the weakening of the JPY. The intervention happened after USDJPY hit the fresh 24-year high of 145.88. The currency pair dropped almost 500 pips from the daily highs following the intervention. Early today, the Bank of Japan kept interest rates unchanged at its latest policy meeting, keeping the key interest rate at 0.1% and leaving the 10-year JGB yield target at 0.00%. The BoJ governor said the central bank won't be raising interest rates for some time.

EQUITIES

US stock futures slightly recovered from the previous session's losses on Thursday Morning while the UK shares remain under pressure ahead of the Bank of England’s policy decision. On Wednesday, US shares and global stocks extended the losses after the Federal Reserve shocked the markets with hawkish interest-rate projections.

OIL

Crude oil futures struggling to find the upside momentum after the US central bank signaled further tightening ahead to bring down inflation. On the other hand, the latest EIA crude inventory data showed the US crude oil inventories rose 1.142 million barrels last week, below market expectations of a 2.161 million increase.

CURRENCIES

In the currency market, the US Dollar Index, which measures the greenback’s value against the basket of six major currencies price action remains volatile after the US Federal Reserve delivered a 75-bps rate hike for a third straight time. Meanwhile, the British pound attempting to regain upside momentum against the US dollar ahead of the Bank of England rate decision.

GOLD

The safe-haven metal weakened to around $1,660 an ounce on Thursday, sliding back towards the lowest levels in over two years, weighed down by a rallying dollar as the Fed delivered its third straight 75 basis point rate hike. While as of this writing, the metal rebounded back to above $1770.

Economic Outlook

On the data front, the US Federal Reserve announced another 75-basis point rate hike and raised its rate hike projections. The new forecast for Fed funds at the end of 2022 is 4.4%, up from the 4.2% rate inferred by futures contracts before this update. The Fed is "firmly committed to bringing inflation back to 2% and will remain so until the job is done", said Jerome Powell, after the meeting.

Moving ahead today, the important events to watch:

UK – BOE interest rate decision and statement: GMT – 11.00

US – Weekly jobless claims: GMT – 12.30

Coronavirus update:

Worldwide, more than 612 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 95.6 million cases and has had more than 1.05 million deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: Technically the overall momentum is still bearish, the key support for the Euro stands near the level of 0.9800. On the flip side, the first resistance at 0.9910 any break above this level will open 0.9950/80 minimum.



The important levels to watch for today: Support- 0.9800 and 0.9770 Resistance- 0.9910 and 0.9950.

GOLD: For today the key support remains below the previous session low of $1653. On the flip side, the immediate resistance is located above $1683, a break above this level will confirm a possible move to $1690/95.



The important levels to watch for today: Support- 1660 and 1653 Resistance- 1683 and 1695.

Quote of the day - “The hardest part of investing is holding on through difficult periods and taking short-term pain so you can have long-term gains” — Jim Cramer.

Read more - https://gulfbrokers.com/en/daily-market-report-559

 

[Bulletproof Traders]

CAD/JPY - Negative momentum is off the charts​

 

[syamfx2020]

Last week major central banks, including the Federal Reserve, the Bank of England, and the Swiss national bank continued their aggressive policies and stated that the economic outlook remained highly uncertain.

As we progressed through the last week of this month, global markets seem to be set for another week of panic. This week, the Central bankers will continue to be in focus with the US Federal Reserve and ECB's top officials set to deliver remarks. Thursday’s GDP report is expected to be the week’s most closely watched economic release along with the release of the PCE price index on Friday.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Nike, BBBY and Micron.

GOLD

Gold price ended the week sharply lower after the U.S. Federal Reserve increased interest rates by another 75 basis points and flagged more hikes. Precious metals could continue to struggle as the strengthening US dollar continued to sap demand for greenback-priced bullion. For this week, gold investors and traders should closely monitor the comments from the FED policymakers for clues as to their outlook for interest rates.



For this week, $1620 remains the key support area to watch, any break below this level will open $1610/00 minimum. On the upper side, If the metal regains upside momentum and presses back above $1655 then the key resistance area to watch is $1665 then $1672/80.

DOLLAR INDEX

The dollar index extended its recent run and surged above the 113 level for the first time since May 2002. The bullish rally was driven by worries about a slowing global economy and higher inflation. The strong upside move was also lifted after the Fed delivers another aggressive rate hike. The Federal Reserve leading the charge on interest rate hikes and the central bank is focused on bringing inflation down even if the US economy struggles.



Technically the overall momentum remains bullish throughout the last couple of weeks. This week, the key resistance is located above 114.80, a break above this level will confirm a possible move to 115.40/116. On the downside, any meaningful pullback now seems to find some support near the 112.80 zones, below which the slide could further get extended towards the 112 and 111.80/30 regions.

EURUSD

EURUSD was sold off heavily last week weighed down by the strong US dollar and fears that Europe will fall into recession. Moving ahead, any bounce back will be weak and succumb to selling pressure. The strong reversal will only come above 1.0000 levels. This week, the comments from the ECB policymakers and Eurozone inflation data on Friday are likely to significantly affect the currency pair.



Technically the current price action signals suggest that a long-term bearish trend remains intact. This week, the immediate support for the Euro stands near 0.9600 followed by 0.9550. On the flip side, the first resistance at 0.9800 any break above this level will open 0.9860/0.9930 minimum.

DOW JONES

Dow Jones and other US indices extended their slide after U.S. Federal Reserve Chairman Jerome Powell hinted at a more aggressive tightening of monetary policy than previously anticipated. For Dow this week, important economic news to watch includes US Consumer Confidence Index and new home sales on Tuesday, durable goods orders on Wednesday, Q2 GDP report and weekly unemployment claims on Thursday, and personal income and spending on Friday.



Technically the overall sentiment remains bearish. However, a fresh demand for Dow can be anticipated once the pair rises above the 30,0000 key level. In this case, the pair could re-test hourly 200-SMA located near the 30,800 level. On the other hand, the next immediate support prevails at 29,200, further breakout of 29,200 can lead the index towards 29,000 and 28,600 levels.

Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-49

 

[syamfx2020]

Global stock markets are under huge pressure and selling is going on. Wall Street and global stock markets hit hard on Monday. Markets are dumping because FED and other major central banks maintain an aggressive rate-hike strategy that could trigger a growth slowdown or a recession.

Moving ahead to the North American session, the investors and traders are waiting for the speeches from FOMC Chairman Jerome Powell and ECB President Christine Lagarde. On the other hand, investors should also closely monitor the release of the US durable goods orders and consumer confidence numbers.

EQUITIES

US futures and European shares slightly recovered on Tuesday morning and there have been decent moves to start the day so far with markets looking lively but all the attention remains on Federal Reserve Chair Jerome Powell's speech at an event in Paris.

OIL

Crude oil futures remain under pressure on Tuesday amid concerns over slower economic growth and lower energy demand. Meanwhile, both the brent and WTI futures slightly rebounded from the previous session lows. However, the overall momentum is expected to be bearish for the next few weeks as oil traders and Investors are worried the US Fed's aggressive rate hikes may lead to a recession and dampen oil demand.

CURRENCIES

In the currency market, the euro notched up small gains against a dollar after the previous sessions' sell-off while overall momentum remains bearish, focus shifted to the European Central Bank meeting President Christine Lagarde's speech. On Monday, the currency pair slumps to a fresh 20-year low of 0.9550.

GOLD

The safe-haven metal rebounded back to near $1640 on Tuesday morning after the US dollar paused for breath following a sharp rally. During the previous session, the metal plunged to the lowest levels since April 2020 as a firmer dollar and amid prospects of aggressive monetary policy tightening dented the safe-haven appeal of the precious metal.

Economic Outlook

On the data front, the latest German IFO survey suggests that the economy is headed for a sharp downturn. IFO research showed on Monday, the business confidence index fell sharply to 84.3 in September from 88.6 in August, the lowest since May 2020.

Moving ahead today, the important events to watch:

US – Durable goods orders: GMT – 12.30

US – CB consumer confidence: GMT – 14.00

US – New home sales: GMT – 14.00

Coronavirus update:

Worldwide, more than 614 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 1.05 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: The currency pair remains under pressure a clear breakdown of the support at 0.9600 could open space for further declines while only recovery to 0.9810 would reverse the strong negative trend.



The important levels to watch for today: Support- 0.9600 and 0.9550 Resistance- 0.9670 and 0.9710.

GOLD: The precious metal slightly recovered. For today the resistance stays above $1742, break above the resistance level then $1748/53 easily looking but if not sustain then again come down up to support level $1630/26



The important levels to watch for today: Support- 1630 and 1626 Resistance- 1642 and 1650.

Quote of the day - This company looks cheap, that company looks cheap, but the overall economy could completely screw it up. The key is to wait. Sometimes the hardest thing to do is to do nothing. - David Tepper.

Read more - https://gulfbrokers.com/en/daily-market-report-560