DAILY MARKET REPORT - Wednesday, May 12, 2021

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The British pound recovered from the early session low after the March UK GDP reported better-than-expected. The data showed the UK economy grew 2.1% in March, compared to the 1.3% forecast. Meanwhile, during the first quarter (Jan to Mar) the economy contracted by 1.5%.

EQUITIES

US stock futures trading mixed as are awaiting the release of the US inflation report later in the day. On Tuesday, wall street extends lower following the mixed comments from the FED speakers and renewed worries about the potential rise in inflation across global markets.

On the earnings front, Vroom (NASDAQ: VRM), and Bumble (NASDAQ: BMBL) is scheduled to report results after the market close.

OIL

Crude oil prices trading volatile on Wednesday ahead of the EIA inventory report. The oil prices climb to a new session high after the better-than-expected API crude inventory data and positive comments from OPEC about the recovery of global oil demand.

CURRENCIES

In the currency market, the Australian dollar and New Zealand dollar slipped to a new weekly low driven by a selloff in equity markets. On the other hand, the USD/CAD struggling to find the upside momentum supported by the strong oil prices.

GOLD

The Safe haven metal trading lower on Wednesday. During the previous session, the metal fell to a fresh weekly low of $1818 following the increase in yields on bonds and the US dollar.

Economic Outlook

On the data front, the March US JOLTs job openings numbers came at 8.123 million, compared to the market expectations of 7.5 million.

Moving ahead today, the important events to watch:

US – CPI: GMT – 12.30

US – EIA crude inventories: GMT – 14.30

Coronavirus update:

Worldwide, more than 159 million people have been confirmed infected and more than 3.3 million have died. The United States has confirmed over 32.7 million cases and has had more than 581,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair retreat after it failed to break the weekly high. At the time of writing, the pair hovers near the 1.2130 area.

eurusd


The important levels to watch for today: Support-1.2110 and 1.2080 Resistance- 1.2150 and 1.2180.


GOLD: The yellow metal trading above $1830 today. The near-term resistance is around $1845, any break over targets $1850/$1855. On the other side, the immediate support is at $1826 and any break will drag the gold to $1816/10 levels.

gold neww


The important levels to watch for today: Support- 1826 and 1816 Resistance- 1845 and 1855.

Quote of the day: “Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you.” – Larry Hite.

Read more- https://gulfbrokers.com/en/daily-market-report-305
 
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