Daily Market Report - Wednesday, Aug 23, 2023


Today all eyes are focused on the several purchasing managers surveys, countries such as Germany, the UK, the US, and the Eurozone. PMIs are significant as they tend to be reliable leading indicators of growth. A reading above 50 indicates expansion while a sub-50 print indicates contraction in the sector surveyed.

UK, Eurozone, and Germany already published weaker-than-expected services PMI data a few hours back. UK Services PMI contracted to 48.7 in August 2023, down from 51.5 in the previous month and Manufacturing activity fell from 45.3 to 42.5. The PMI for the German services sector fell to 47.3 points in August from 52.3 points in July. Moving ahead to the North American session, the focus shifts to now the release of United States (US) PMI data.


European shares and US stock futures trades steady despite the release of weak flash PMI data as the investors are eagerly waiting for earnings from Nvidia (NVDA) due after the closing bell. Nvidia stock ended slightly lower on Tuesday after hitting the 52-week high. While considering the strong rally if anything less than estimate could trigger a sharp downside correction in the chip maker stock price.


Oil prices slipped again on Wednesday as the bulls still struggling to find upside momentum. Crude oil futures extended the slide after industry data showed an unexpected build in crude inventory in the United States. The API data showed the US crude inventories dropped by about 2.4 million barrels last week, smaller than the 2.9-million-barrel draw expected by analysts.

In the currency market, the Euro and British pound tumbled against the US dollar following the release of disappointing service PMI data from the UK and Eurozone. As of this writing, the GBPUSD trades below 1.2650. However, the bears need to see a confirmed break below the crucial support area of 1.2610 for further downside. Meantime, the US dollar index breaks above the upper trend line resistance and hits a fresh multi-month high of 103.90.


The precious metal was little changed on Wednesday as market activity remained largely subdued ahead of the key Jackson Hole Symposium and the speech by Chairman Powell. However, gold investors and trades should also closely monitor the release of next two days of U.S. economic data ahead of FED Powell's speech which could influence the next Federal Reserve monetary policy meeting outcome. As of this writing, the metal trades are above $1900.

Economic Outlook

On the data front, US existing home sales drop, but prices up from a year earlier. US Existing Home Sales dropped to six month- low at 4.07M in July, compared to 4.16 M in the previous month vs 4.15M was estimated.

Moving ahead today, the important events to watch:

US – Manufacturing and Services PMI: GMT – 13:45

US – New home sales: GMT – 14:00

Technical Outlook and Review

Technically, the overall momentum remained bearish throughout the European session. In the short term, 1.0800 is the immediate support level, followed by 1.0780/60. On the flip side, 1.0840 now seems to act as an immediate resistance. In the long term, watch for weekly closing above 1.0900 or below the 1.0750 area, which will give a larger confirmation of direction in the long term.


The important levels to watch for today: Support- 1.0800 and 1.0770 Resistance- 1.0840 and 1.0870.

GOLD: The metal trading above the $1900 area during the European session, if the bullish momentum continues the next upside levels to watch the $1906/08 zone. On the flip side, the immediate support is at $1893/90.

gold neww

The important levels to watch for today: Support- 1895 and 1888 Resistance- 1906 and 1910.

Quote of the day “People tend to like to buy companies that are doing well, they hate companies that are doing badly. So, you look at the ones that are depressed and then you say well, maybe these things can come back.” - Walter J. Schloss.
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