Daily Market Report - Wednesday, Nov 02, 2022

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Global markets volatility remains elevated ahead of the Fed decision. The FED is expected to hike its benchmark interest rate by 75 basis points for the fourth consecutive time. The FED Monetary Policy Statement is set to be released at 18.00 GMT. Along with this release will see the FED chair Jerome Powell Conference 30-minutes after at 18:30. The meeting outcome and especially FED chair Powell’s comments could bring extra volatility to the global markets after recent suggestions from Fed officials of a potential slowdown in the tightening pace.

EQUITIES

US stock futures remain under pressure as investors awaited a closely watched interest rate decision by the Federal Reserve. On the other hand, investors should also closely monitor the ongoing third-quarter earnings season, some of the largest US companies will report their latest quarterly numbers today including Qualcomm, CVS Health, Roku, and Etsy.

OIL

Crude oil futures held the previous session gains despite the strong US dollar supported by the surprise crude inventory draw. The latest API inventory data showed that US crude stocks declined by about 6.5 million barrels last week, compared with estimates for a rise of 267,000 barrels.

CURRENCIES

In the currency market, the New Zealand dollar remains the strongest currency pair of the week. The recent bullish sentiment was boosted by hawkish comments from the Reserve Bank of New Zealand Governor Adrian Orr and a robust employment report. “New Zealand is relatively well positioned but inflation is still too high in an absolute sense and the country's financial system remains well placed to support the economy” - Adrian Orr said.

GOLD

The safe-haven metal recovered back to above $1650 on Wednesday morning. Considering the recent rebound gold investors should closely monitor the comments from the FED chair Powell later in the day. On Tuesday, the metal failed to extend the gains following the release of the most awaited US ISM manufacturing PMI report.

Economic Outlook

On the data front, the US manufacturing purchasing managers' index (PMI), prepared by the Institute for Supply Management (ISM), dropped from 50.9 in September to 50.2 in October. However, the data came higher than expected.

Moving ahead today, the important events to watch:

US – ADP employment report: GMT – 12.15

US – EIA crude inventories: GMT – 14.30

US – FOMC interest rate decision: GMT – 18.00

Coronavirus update:


Worldwide, more than 630 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 97 million cases and has had more than 1.07 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
For today, the first nearest support level is located at 0.9850. In case it breaks below this level, it will head towards the next support level which is located near 0.9800. On the upper side, 0.9910 will act as an immediate and strong hurdle while 0.9950 will be a critical resistance zone because above this, bulls are likely to dominate.



The important levels to watch for today: Support- 0.9850 and 0.9800 Resistance- 0.9910 and 0.9950.

GOLD: For today, the key resistance is located around $1662, a break above this level will confirm a possible move to $1675/80. On the downside, any meaningful pullback now seems to find some support near the $1630 zones, below which the slide could further get extended towards the $1620/18 region.



The important levels to watch for today: Support- 1642 and 1630 Resistance- 1662 and 1675.

Quote of the day - “People don’t like the idea of thinking long term. Many are desperately seeking short term answers because they have money problems to be solved today.” Robert Kiyosaki.

Read more - https://gulfbrokers.com/en/daily-market-report-573
 
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