Daily Market Report - Wednesday, July 19, 2023


Shares of streaming giant Netflix (NASDAQ: NFLX) hit a fresh 52-week high of $478 on Tuesday. The stock gained more than 55% this year. The company is set to report its second-quarter financial results today after the market closes. The company is expected to post quarterly earnings of $2.85 per share and revenues are expected to be $8.28 billion. The key focus remains the last quarter subscriber figure to know how the password sharing ban impacted user numbers and the firm is also facing increasing competition from streaming rivals like Hulu, Disney+, and HBO Max. During the first quarter, the company had an increase of 1.75 million subscribers totalling approximately 232.5 million subscribers worldwide.


Wall Street registered solid gains on Tuesday despite the latest US economic data showed sales at U.S. retailers grew by less last month than economists expected. The bullish rally was supported by better-than-expected earnings results from the banking giants. Morgan Stanley shares jumped 6.45 percent, their biggest one-day percentage climb since November 9, 2020, after topping expectations. Bank of America stock jumped about 4.2% after posting a 20% surge in second-quarter profit.


Crude oil prices recovered from Monday's low and closed higher on Tuesday after Chinese authorities pledged that they would roll out policies to “restore and expand” consumption. Meanwhile, the weekly API inventory report showed the US crude inventories decreased this week by 797,000 barrels after increasing by 3.026 million barrels in the week prior. Moving ahead to the North American session, the focus shifts to EIA crude inventory data, which is set to be released at 14:30 GMT.


In the currency market, the British pound plunged as cooling UK inflation bolstered expectations the Bank of England is very close to wrapping up its tightening campaign. The UK annual inflation rate softened from 8.7% to 7.9% in June. Consumer prices increased by 0.1% from May to June versus 0.7% in May.


The precious metal bounced more than 1% on Tuesday and reached a fresh monthly high of $1983. The strong upside momentum was lifted by weak US economic data. On the other hand, the traders started to expect the FED to stall after this month’s rate hike and market pricing also suggests that the Fed could start cutting rates next year.

Economic Outlook

On the data front, US retail sales rose by less than forecast. The value of retail purchases rose 0.2 percent in June after an upwardly revised 0.5 percent increase in May. Industrial production in the United States declined by 0.5 percent for the second straight month in June.

Moving ahead today, the important events to watch:

US – Housing starts: GMT – 12:30

US – Building permits: GMT – 12:30

Technical Outlook and Review

For today, if the pair breaks below 1.1200 in the coming hours, the euro is likely to extend its decline toward the next support which stands at the 1.1150/30 level. On the upper side, 1.1250 will act as an immediate and strong hurdle while 1.1280 will be a critical resistance zone.

The important levels to watch for today: Support- 1.1200 and 1.1150 Resistance- 1.1250 and 1.1280.

GOLD: In the short-term perceptive, the current price action signals suggest that the bullish trend remains intact. If the bullish momentum continues the next upside level to watch is $1985/88 then $1995/2000. On the downside, any meaningful pullback now seems to find some support near the $1965 zones, below which the slide could extend further towards the $1958/44 regions.

The important levels to watch for today: Support- 1952 and 1945 Resistance- 1970 and 1974.

Quote of the day “Patterns don't work 100% of the time. But they are still critical because they help you define your risk. If you ignore patterns and focus on hunches, feelings, and hot tips, just forget about achieving consistency.” -Ifan Wei.
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