Daily Market Report - Wednesday, Feb 22, 2023


The US Dollar Index, which measures the greenback’s value against the basket of six major currencies remains steady ahead of the FED minutes, which is set to be released at 19.00 GMT. The outcome of the minutes from the Fed's latest policy meeting should be a big piece for the next trend for the king dollar. The overall momentum remained bullish for the last couple of weeks on speculation that the Federal Reserve would continue to raise interest rates. The most awaited FED minutes will also tend to lead to significant moves for other currency currencies, commodities, and Indices.

The Dollar index (DXY) hovers above the 104 area. If the bullish momentum continues the next key upside level to watch is 104.60, any break over targets 105 and 105.30. On the downside, any meaningful pullback now seems to find some support near the 103.50/40 zones.


Wall Street posted its worst performance of the year on Tuesday as markets bet on more interest-rate hikes from the Fed. US stock futures extend the decline Wednesday morning ahead of the release of the Federal Reserve’s latest minutes. On the other hand, Investors should also close pay attention today to corporate earnings with some of the biggest companies reporting their earnings. Nvidia, Etsy, Baidu and Wix.com are amongst those reporting the last quarter's financial results today.


Crude oil bears are firmly in control. On the macro side, US Dollar strength and hawkish signals from US Federal Reserve officials were the main bearish factors impacting crude markets this week. Moving ahead, oil traders should closely monitor the release of the EIA inventory report and the FED minutes.


In the currency market, the British pound reversed from the previous session's gains. The currency pair hit a fresh weekly high of 1.2147 on Tuesday, the upside sentiment lifted after the release of upbeat UK PMI numbers. Meanwhile, Euro slipped to a fresh session low of 1.0639 Wednesday Morning following the release of the weaker-than-expected IFO business climate report.


The precious metal retreats back to below $1835 during the European session as investors grew more cautious about placing aggressive bids ahead of FOMC minutes to be announced today. The strong bearish sentiment was also fueled by the resurgence in the US dollar. The dollar rally comes after renewed concerns about aggressive interest rate hikes.

Economic Outlook

On the data front, New Zealand’s central bank raised its benchmark interest rate by half a point to 4.75%. The Monetary Policy Committee agreed that the OCR still needs to increase, as indicated in the November Statement, to ensure inflation returns to within its target range over the medium term.

Coronavirus update:

Worldwide, more than 675 million people have been confirmed infected and more than 6.8 million have died. The United States has confirmed over 104 million cases and has had more than 1.14 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

The currency pair can regain upside momentum again if it rebounds back to above the 1.0700 level, any break and closes above this level the next levels to watch are 1.0740/70. Nevertheless, if it continues to fall, the slump will quickly extend toward the 1.0610 and 1.0570 marks.

The important levels to watch for today: Support- 1.0600 and 1.0570 Resistance- 1.0700 and 1.0740.

GOLD: For gold, the first nearest support level is located at 1830. In case it breaks below this level, it will head towards the next support level which is located near 1820/18 then 1810. On the upper side, 1855 will act as an immediate and strong hurdle while 1860 will be a critical resistance zone because, above this, bulls are likely to dominate.

The important levels to watch for today: Support- 1830 and 1818 Resistance- 1848 and 1855.

Quote of the day - “The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed.” ― Peter Lynch.
Read more - https://gulfbrokers.com/en/daily-market-report-620