Daily Market Report by GulfBrokers 2020-2021

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The U.S. has been administering vaccine shots at a faster daily rate than any country in the world. The mass vaccination helps the new coronavirus case counts are steadily dropping across the United States. On Friday, the WHO said that the number of people in the world who have been vaccinated against the coronavirus so far has surpassed the number of people being infected by the virus.

EQUITIES

Global stocks started the week on a positive note supported by prospects of President Joe Biden’s US$1.9 trillion COVID-19 relief package after Speaker Nancy Pelosi predicted the final relief legislation could pass Congress before March 15.

OIL

Crude oil price trading higher on Monday on hopes for a recovery in the fuel demand after mass coronavirus vaccination rollout in the US and Europe.

CURRENCIES

In the currency market, the British pound trading lower on Monday against the US dollar and Euro after strong gains late last week. On the other hand, US dollar trading steady after the Index closed slightly lower on Friday following the mixed US job data.

GOLD

The safe-haven metal remains under pressure after the US dollar made its strongest weekly gain since October supported by the strong US macro-economic data.

Economic Outlook

On the data front, on Friday, the US Bureau of Labor publishes released the NFP report. The data showed the non-farm payrolls increased by 49,000 jobs last month and the unemployment rate dropped to 6.3% from 6.7%. Meanwhile, the labor participation dipped to 61.4%.

This week the main highlights of the economic calendar will be the inflation data from the US, Eurozone and China, UK GDP, and manufacturing production.

Coronavirus update:


Worldwide, more than 105.9 million people have been confirmed infected and more than 2.3 million have died. The United States has confirmed over 26.8 million cases and has had more than 461,000 deaths from COVID-19.

Technical Outlook

EUR/USD:
The currency pair retreated from the daily highs following the weaker-than-expected German economic data.

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The important levels to watch for today: Support- 1.2000 and 1.1970 Resistance- 1.2050 and 1.2090.

GOLD: The precious metal trading unchanged on Monday. The important levels to watch today $1800 and $1820.

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The important levels to watch for today: Support- 1806 and 1800 Resistance- 1818 and 1824.

Quote of the day: Building wealth is a marathon, not a spirit. Discipline is the Key Ingredient.

Read more- https://gulfbrokers.com/en/daily-market-report-255
 
Important economic events this week: US, China and Eurozone inflation data, UK GDP and Oil inventories.

US earnings to watch: Twitter, Uber, Lyft, PEPSI and Walt Disney

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“I think bitcoin is really on the verge of getting broad acceptance by sort of the conventional finance people.” Tesla CEO, Elon Musk.

Bitcoin (BTC) jumped more than 20% in last 24 hours and hits a new record high above $47600 on Tuesday after the Electric car maker Tesla revealed that it has purchased $1.5 billion worth of the cryptocurrency and would soon accept it as a form of payment for cars. At the time writing, BTC trades around $47300 and the next important level to watch $50000.

"We expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt," Tesla said.

In January, the Bitcoin closed slightly lower following the bearish comments from the European Central Bank President Christine Lagarde and US Treasury Secretary Janet Yellen.

EQUITIES

Wall Street ended record high on Monday on hopes that US lawmakers will pass a $1.9 trillion COVID-19 relief aid this month

On the earnings front, Twitter (NYSE: TWTR), Cisco (NASDAQ: CSCO), and Lyft (NASDAQ: LYFT) is scheduled to report results after the market close.

OIL

Crude oil price trading steady and surge to the fresh session high during the Asian session on optimism over fuel demand recovery.

CURRENCIES

In the currency market, the US dollar retreated from the previous week highs while the British pound Hits 33-month High.

GOLD

The gold price up for the third consecutive day lifted by the weaker dollar. Overall, the momentum remains bullish throughout the European session.

Economic Outlook

On the data front, Germany’s trade surplus widened from €16.0bn to €16.1bn in December. While exports gained 0.1% on the month, slower than the 2.3% increase in November.

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 106.3 million and more than 2.3 million have died. The United States has confirmed over 27 million cases and has had more than 463,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair trading steady above 1.2060. During the European session, the pair reached a fresh session high of 1.2100.

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The important levels to watch for today: Support- 1.2070 and 1.2040 Resistance- 1.2100 and 1.2130.

GOLD: The yellow metal trading above $1845 area during the European session, if the bullish momentum continues the next upside levels to watch the $1850 and $1856 zone. On the flip side, the immediate support at $1832/30.

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The important levels to watch for today: Support- 1830 and 1816 Resistance- 1845 and 1850.

Quote of the day: If you can’t control your emotions, you can’t control your money.

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China's consumer price index (CPI) declined 0.3% year on year in January, compared with a 0.2% increase in December last year. While on a monthly basis the inflation edged up 1%. On the other hand, the consumer price index rose 1.0% year-on-year after a 0.3% fall in December. Moving ahead to the North American session, the US will release the latest consumer inflation figures at 13.30 GMT.

EQUITIES

US futures extends higher on Wednesday on hopes that the expected stimulus package proposed by US President Joe Biden will ultimately lead to an increase in the current account deficit. The bill is expected to be approved by March 15 if the Republican Party does not go along with new Democratic President Joe Biden.

On the earnings front, Coca- Cola (NYSE: KO), General Motors (NYSE: GM), and Under Armour (NYSE: UAA) reporting earnings today before the bell while UBER (NYSE: UBER) and MGM Resorts (NYSE: MGM) is scheduled to report results after the market close.

OIL

Crude oil price climbed back to the previous session highs boosted by better-than-expected API inventory data. The data showed the inventory fell by 3.50 million barrels in the week ended February 5th of 2021, following a 4.26 million drop in the previous week.

CURRENCIES

In the currency market, the commodity currency Canadian dollar trading strong on Wednesday after Crude oil prices closed near the 13-month high during the previous session.

GOLD

The gold price trading unchanged on Wednesday as the investors are awaiting approval for a $1.9 trillion bailout package for the US economy.

Economic Outlook

On the data front, the US JOLTS Job Openings were released on Tuesday North American session, showing a rise to 6.65M, against the expected 6.42M.

Moving ahead today, the important events to watch:

US – Consumer price index: GMT – 13.30

US – EIA crude inventory report: GMT – 15.30

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 106.6 million and more than 2.3 million have died. The United States has confirmed over 27.1 million cases and has had more than 465,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

Dollar Index:
The greenback hits fresh monthly low 90.36 on Wednesday ahead of US inflation data. Overall, the momentum remains bearish throughout this week.

DXY


The important levels to watch for today: Support- 90.20 and 89.90 Resistance- 90.60 and 90.95.

GOLD: The yellow metal hovers near the short-term resistance $1845 on Wednesday. During the previous session, the metal closed higher but failed to break above the $1850 zone.

gold neww


The important levels to watch for today: Support- 1838 and 1830 Resistance- 1850 and 1856.

Quote of the day: Its far better to buy a wonderful company at a fair price than a fair company at a wonderful price- Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-257
 
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Dow Jones ended record high on Tuesday on hopes that US lawmakers will pass a $1.9 trillion COVID-19 relief aid this month and strong Q4 earnings results. The recent rally also supported by bullish comments from the Janet Yellen, the US treasury secretary, she said the US economy could return to full employment next year if President Biden’s $1.9 trillion relief package is passed.

According to US President Joe Biden, the size of the stimulus checks of $ 1,400 is non-negotiable, but some parts of the bill could be negotiated. The stimulus bill is expected to be approved by March 15 if the Republican Party does not go along with new Democratic President Joe Biden.

During the last week, the main stock market indexes rose the most since November with the Dow Jones increased by more than 4%, its biggest one-week gain since the week ending Nov. 6.

Apart from this, investors keep an eye on the development of COVID-19 vaccination around the world. Recently the WHO said, the number of people in the world who have been vaccinated against the coronavirus so far has surpassed the number of people being infected by the virus.

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The technical scenario is absolutely bullish after the price break above 31,000 zones and overall the movement remained bullish throughout this week. While considering the recently bullish rally the Dow may find strong resistance in the area of 31,800 where the price has strong resistance. On the downside, in the short-term the first immediate support at 31,270 followed by 31,000/30,950.

Trading is risky and your entire investment may be at risk. Please ensure that you fully understand the risks involved.

Read more- https://gulfbrokers.com/en/dow-jone...there-more-upside-or-will-we-see-a-correction
 
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The US largest food delivery company DoorDash (NYSE: DASH) shares closed 14% higher on Wednesday after the company agreed to acquire the robot salad company Chowbotics.

$DASH climbed more than 18% from Monday and surged 35.4% in January.

Chowbotics has introduced a new feature for Sally which allows users to order their ahead of time using an app.

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