DAILY MARKET REPORT - Wednesday, May 05, 2021

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Crude oil prices climb above the previous month high on Wednesday supported the successful COVID-19 vaccine rollout in the US and UK and more stimulus measures could aid economic recovery which will boost oil demand in the near future. On the negative side, investors continued to monitor a deepening COVID-19 crisis in India, Japan, and Canada.

Technically the overall momentum remained bullish for the US crude oil prices throughout this week. In the short term if the bullish momentum continues the next upside levels to watch $67 and $67.70. On the flip side, the first immediate support can be found at $65.30 and then $64.60.

EQUITIES

US stock futures rebounded from the previous session losses. The major Asian markets including China, Japan and South Korea remain closed on Wednesday. European shares trading flat following the mixed services PMI data from Germany and Eurozone.

On the earnings front, General Motors (NYSE: GM) reporting earnings today before the bell while Uber (NYSE: UBER), PayPal (NASDAQ: PYPL) and ETSY (NASDAQ: ETSY) is scheduled to report results after the market close.

OIL

Crude oil prices trading steady during the European session as Investors now await the weekly EIA inventory report on US crude oil stockpiles due later in the day. During the Asian session, the API data showed the oil inventories went down 7.7 million barrels last week.

CURRENCIES

In the currency market, the U.S. Dollar Index measures the dollar’s value against the basket of six major currencies trading higher on Wednesday. The British pound trading strong against the Euro and US Dollar ahead of the BOE meeting on Thursday.

GOLD

The Safe-haven metal trading slightly lower on Wednesday after U.S. Treasury Secretary Janet Yellen suggested a potential rise in U.S. interest rates. Moving ahead to the North American session, the gold traders and investors should closely watch the release of the ADP and ISM PMI data.

Economic Outlook

On the data front, the Germany Services PMI came weaker-than-expected to 49.9 in April from a preliminary of 50.1 and down from 51.5 in March. While Eurozone Services PMI was revised slightly higher to 50.5 in April 2021, from a preliminary estimate of 50.3.

Moving ahead today, the important events to watch:

US– ADP employment report: GMT – 12.15

US – ISM services PMI: GMT – 14.00

US – EIA crude inventories: GMT – 14.30

Coronavirus update:

Worldwide, more than 154 million people have been confirmed infected and more than 3.2 million have died. The United States has confirmed over 32.5 million cases and has had more than 577,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair extends slide to a fresh weekly low of 1.1985 during the European session. The next downside levels to watch 1.1960 and 1.1950 for today.

eurusd


The important levels to watch for today: Support- 1.1960 and 1.1940 Resistance- 1.2030 and 1.2050.



GOLD: The yellow metal trades below $1780, any break below $1773 the next downside levels to watch $1768 and 1762. On the upper side, the immediate resistance around $1784.

gold neww


The important levels to watch for today: Support- 1768 and 1762 Resistance- 1784 and 1790.

Quote of the day: “If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.” – Mark Douglas.

Read more- https://gulfbrokers.com/en/daily-market-report-300
 
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