Daily Market Report by GulfBrokers 2020-2021

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USDJPY slightly retreated after rose to a fresh session high of 109.35 on Monday.

If the bullish momentum continues the next upside levels to watch 109.60 and 109.80/110. On the flip side, the immediate support at 108.80/60.

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Food ordering technology company Olo will launch its initial public offering (IPO) on March 16 and the company plans to raise $306 million at a $3.1 billion market capitalization. The company financials showed strong topline revenue growth, the revenue grew 94% year-over-year, from $45.1 million in 2019 to $92.8 million last year.

The New York-based firm initially planned on selling 18 million shares at a price point of $16 to $18 while on Monday the company increased the IPO price range of between $20 to $22. The IPO will be listed on the New York Stock Exchange under the ticker ‘OLO’. Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the lead underwriters for the IPO.

Olo was founded in 2005, is integrated with 64,000 restaurants across 400 brands and processes 1.8 million orders per day. The company offers a white-label ordering service for restaurants to use and delivery programs that connect restaurant brands to the on-demand world.

Read more- https://gulfbrokers.com/en/restaurant-software-company-olo-ipo-to-open-on-tuesday
 
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During the European session, the ZEW economic research institute released the latest economic sentiment data. The data showed Germany Zew economic sentiment rose to 76.6 points in March from 71.2 the previous month.

EQUITIES

US stock futures trading higher on Tuesday ahead of the U.S. Commerce Department's February retail sales data. On Monday, the Dow Jones, and the S&P 500 close at a fresh record high.

On the US earnings front, Lennar (NYSE: LEN), and Coupa (NASDAQ: COUP) reporting earnings today after the market close.

OIL

Crude oil price trading lower for the second consecutive day after Germany, France and Italy suspended the use of the AstraZeneca COVID-19 vaccine over blood clot concerns.

CURRENCIES

In the currency market, the British pound fell to a fresh weekly low of 1.3808 on Tuesday following the bearish comments from the Bank of England governor Andrew Bailey. Meanwhile, the Euro trading strong boosted by better-than-expected economic data.

GOLD

The safe-haven metal trading unchanged on Tuesday as the investors and traders await the outcome of the Federal Reserve policy meeting starting today. Overall, the momentum remains bullish throughout this week.

Economic Outlook

On the data front, the Reserve Bank of Australia released the last meeting minutes. In the minutes, Governor Philip Lowe reiterated it was unlikely cash rates would rise over the next three years.

Moving ahead today, the important events to watch:

US – Retail sales: GMT – 12.30

US – Industrial production: GMT – 13.15

Coronavirus update:

Worldwide, more than 119.9 million people have been confirmed infected and more than 2.6 million have died. The United States has confirmed over 29.4 million cases and has had more than 534,900 deaths from COVID-19, the highest totals in the world. Meanwhile, U.S. President Joe Biden says America will reach the milestone of 100 million coronavirus vaccinations within the next 10 days.

Technical Outlook

EUR/USD:
The currency pair slightly rebounded from the early session lows. At the time of writing, the pair trades above 1.1940.

eurusd


The important levels to watch for today: Support- 1.1910 and 1.1870 Resistance- 1.1960 and 1.20.

GOLD: The precious metal trading steady above $1730. Any break above $1740 will open the doors to $1748 and $1760. On the downside, the immediate support at $1722.

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The important levels to watch for today: Support- 1728 and 1720 Resistance- 1740 and 1748.

Quote of the day: Traders focus almost entirely on where to enter a trade. In reality, the entry size is often more important than the entry price – Jack D. Schwager.

Read more- https://gulfbrokers.com/en/daily-market-report-265
 
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Markets are trading quite ahead of the central bank meetings. The investors waiting for feedbacks from the worlds largest central banks Federal Reserve, Bank of Japan and Bank of England after the latest changes in the economic outlook.

Recently global stocks climbed to fresh heights. Most importantly all the US indices hit an all-time high this week as the investors believe the US economy is expected to post a faster rebound on the back of the Coronavirus vaccine distribution program and the rollout of the latest $1.9 trillion COVID-19 relief package.

U.S FOMC MEETING – MARCH 16-17, 2021

The US Federal Reserve meeting started on Tuesday, the two-day policy meeting that will conclude later today. The traders and investors patiently waiting for the Federal Reserve’s monetary policy statement for guidance on policy makers’ views on the economic outlook. While the investors also strongly waiting for the comments on inflation and interest rates from chairman Jerome Powell.

BANK OF ENGLAND MEETING – MARCH – 18, 2021

The BoE, which meets on Thursday, the central bank widely expected to keep interest rates steady and make no changes to their current pace of stimulus. While few market participants are expected to signal an increase to the central bank's bond-buying from May.

“People are right to caution about the risks of central banks acting too conservatively by tightening policy prematurely,” Bank of England Chief Economist Andy Haldane said recently.

BANK OF JAPAN MEETING – MARCH – 19, 2021

The Bank of Japan (BoJ) will be holding its monetary policy meeting on Friday. The Bank of Japan will unveil a policy review, possibly tweaking stimulus programs and even maybe reiterating its capacity to cut rates further. The BOJ is also likely to clarify how much it will allow bond yields to deviate from their 0% target, and consider steps to address the side effects of negative interest rates.

“Excessive falls in super-long interest rates would affect returns for insurers and pension funds. On the other hand, it’s important to keep the entire yield curve stably low as the pandemic weighs on the economy,” BOJ, Governor, Haruhiko Kuroda said on Tuesday.

Read more- https://gulfbrokers.com/en/fed-kicks-off-the-worlds-biggest-central-banks-meetings-this-week
 
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On Tuesday during the North American session, the U.S. Commerce Department's released February retail sales data. The data showed February US retail sales dropped by 3% following revised data showing a rise of 7.6% in January and lower than the -0.5% decline forecast.

EQUITIES

Wall Street ended slightly lower on Tuesday, the US indices retreated from the fresh session highs following the weaker-than-expected retail sales and industrial production data.

OIL

Crude oil price selling pressure continues on Wednesday despite better-than-expected API inventory data. The data showed the US crude inventories unexpectedly fell 1 million barrels in the week to March 12th.

CURRENCIES

In the currency market, the Dollar Index trading unchanged on Wednesday ahead of the FED latest policy decision and Chair Powell conference. The dollar expected to be extra volatile during the Fed chair Powell speech especially when he will talk about the recent rise in Treasury yields and inflation expectations.

GOLD

The safe-haven metal trading steady on Wednesday. During the previous session, the metal rose to fresh weekly highs but retreated back to lower after it failed to break above the $1740 area.

Economic Outlook

On the data front, Japan's exports fell 4.5% in February from a year earlier, compared with a 0.8% decrease expected. On the other hand, the consumer price inflation rate in the Euro Area rose 0.9% year-on-year, the same rate as in January.

Moving ahead today, the important events to watch:

US – Building permits: GMT – 12.30

CANADA – Consumer price Index: GMT – 12.30

US – EIA Crude oil inventories: GMT – 14.30

US – FOMC Interest rate decision and statement: GMT – 18.00

Coronavirus update:

Worldwide, more than 120 million people have been confirmed infected and more than 2.66 million have died. The United States has confirmed over 29.5 million cases and has had more than 536,826 deaths from COVID-19, the highest totals in the world.

Technical Outlook

Dollar Index:
The greenback retreated from the previous session highs and trading near to the support area of $91.80/70.

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The important levels to watch for today: Support- 91.70 and 91.40 Resistance- 92 and 92.30.

GOLD: The yellow metal retreated from the previous session high of $1740, any break above this level the short-term upside levels to watch $1744 and $1750. On the downside, the immediate support at $1720 and $1708.

gold neww


The important levels to watch for today: Support- 1728 and 1720 Resistance- 1740 and 1748.

Quote of the day: As a trader, you often walk on the blade. Be careful and don’t step off- Marc Rich

Read more- https://gulfbrokers.com/en/daily-market-report-266
 
Dollar Index

Support: 91.70/35 Resistance: 92/92.25
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EURUSD

Support: 1.1870/30 Resistance: 1.1940/90
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GOLD

Support: $1720/06 Resistance: $1742/60
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The German automaker Volkswagen shares up for the fourth consecutive day. The stock is up more than 35% from Monday and the shares have gained 50% year-to-date.

The company said on Wednesday that it expects to deliver more than 450,000 electric vehicles (EVs) in 2021, more than double its 2020. "The Group aims to be the global market leader for electric mobility by 2025 at the latest," Volkswagen said in a release Tuesday.

“We successfully managed the coronavirus pandemic. After a challenging first half of the year, we fought back with strict cost discipline and a strong sales performance. Ralf Brandstätter, CEO of the Volkswagen Passenger Cars brand said.

EQUITIES

Wall Street ended at a record high on Wednesday. Meanwhile, the US stock futures trading lower on Thursday after the US 10-year Treasury note soared to 1.72%, a fresh high since January of 2020.

OIL

Crude oil prices struggling to find the upside momentum. On Wednesday, during the North American session, the EIA released the latest inventory data. The EIA data showed the U.S. crude inventories rose by 2.4 million barrels for the week ended March 12.

CURRENCIES

In the currency market, the Dollar Index slightly rebounded from the early session lows. During the previous session, the index plunged to a 2-week low following the Fed dovish stance on interest rates and mixed views on the US economic recovery.

GOLD

The safe-haven metal climbed to fresh weekly highs on Thursday after Federal Reserve said it doesn’t plan to raise interest rates until the end of 2023. While the metal slightly retreated from the daily tops during the European session.

Economic Outlook

On the data front, Australia's jobless rate fell to 5.8% in February, the lowest in 11 months while New Zealand's GDP slumped 1% in the last quarter.

On Wednesday, The FOMC has held rates at 0.25% as widely expected and the central bank signalled it will remain accommodative to the U.S. economy for some time to come. The Federal Reserve increased its forecast for inflation to 2.4% this year from the previous expectations of 1.8%.

Moving ahead today, the important events to watch:

UK – BOE interest rate decision and statement: GMT – 12.00

US – Initial jobless claims: GMT – 12.30

US –Fed manufacturing Index: GMT – 12.30

Coronavirus update:

Worldwide, more than 121 million people have been confirmed infected and more than 2.67 million have died. The United States has confirmed over 29.5 million cases and has had more than 536,826 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair retreated back to below 1.1940 after it failed to break above the 1.2000 psychological area.

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The important levels to watch for today: Support- 1.1930 and 1.1890 Resistance- 1.1960 and 1.20.

GOLD: The yellow metal fell almost 20$ from the fresh weekly highs. At the time of writing, the metal trades near the $1730 area.

gold neww


The important levels to watch for today: Support- 1728 and 1720 Resistance- 1742 and 1750.

Quote of the day: Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it – Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-267
 
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Crude oil prices dropped more than 8% this week and on Thursday, the West Texas Intermediate Crude oil price fell 7% that marked its largest daily percentage loss since September. The recent sell-off fuelled by a slowdown in the European vaccine rollout and a “third wave” of COVID-19 is being witnessed by Germany, Italy, and France.

EQUITIES

Global stocks trading lower on Friday on the concern of rising treasury yields and fresh worries about the coronavirus pandemic in Europe. yields on US 10-year notes surged to the highest since early 2020 at 1.754% on Thursday.

OIL

Oil prices sell-off continues, while during the European session the oil prices slightly rebounded from previous session losses while the overall momentum remains bearish throughout this week.

CURRENCIES

In the currency market, the commodity currencies Canadian dollar, Australian dollar and New Zealand weakened against the US dollar after heavy sell-off in crude oil prices and climbing U.S. Treasury yields.

GOLD

The safe-haven metal trading steady on Friday supported by a new wave of coronavirus infections and increasing tensions between the US and China. During the previous session, the gold price dropped more than $30 from the daily tops after US Treasury yields rose to their highest levels in more than a year.

Economic Outlook

On the data front, the Bank of Japan's left its easy monetary policy and goal of 2% inflation unchanged but widened the band in which long-term interest rates will be allowed to rise or fall around its target to 0.25% from 0.2%.

On Thursday, the Bank of England left interest rates at 0.1% and its bond-buying stimulus scheme unchanged.


Coronavirus update:

Worldwide, more than 121 million people have been confirmed infected and more than 2.6 million have died. The United States has confirmed over 29.6 million cases and has had more than 538,100 deaths from COVID-19, the highest totals in the world.

Technical Outlook

USD/CAD:
The currency pair slightly retreated from the early session high. While if the bullish momentum continues the next upside levels to watch 1.2510/50.

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The important levels to watch for today: Support- 1.2460 and 1.2430 Resistance- 1.2500 and 1.2550.

GOLD: The yellow metal trading steady above $1740 during the European session. Overall momentum remained bullish throughout today. The important levels to watch today $1720 and $1750.

gold neww


The important levels to watch for today: Support- 1736 and 1728 Resistance- 1744 and 1752.

Quote of the day: We don’t have to be smarter than the best. We have to be more disciplined than the rest – Warrant Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-268
 
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Delivery and logistics giant FedEx (NYSE: FDX) shares surged more than 6% on Friday in pre-market trading after the company reported better-than-expected third-quarter financial results. The company said strong financial results boosted by volume growth for U.S. home deliveries.

  • Earnings per share (EPS): $3.47 vs. $3.23 expected
  • Revenue: $21.51 billion vs. $19.97 billion expected

FedEx revenue for the quarter rose 22.9% to $21.5 billion from $17.5 billion last year. Express sales rose 21% to $10.8 billion U.S. and Ground revenue jumped 37% to $8 billion U.S. Meanwhile, the company reported a net income of $892 million for the three months ending Feb. 28, compared with $315 million in the same period the year before.

"We expect demand for our unmatched e-commerce and international express solutions to remain very high for the foreseeable future." FedEx, CEO, Fred Smith said. “I’m exceedingly proud of our FedEx team members, who are moving the world forward through the delivery of COVID-19 vaccines — the most important work in the history of FedEx,” Smith said.

For the current fiscal year 2021, FedEx expects earnings of $ 16.80 to $ 17.40 per share and adjusted earnings of $ 17.60 to $ 18.20 per share.

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$FDX closed slightly lower on Thursday at $263. The strong earnings boosted the FEDEX share price climb back to above $280 on Friday.

Read more- https://gulfbrokers.com/en/fedex-stock-spikes-6-on-q3-beats
 
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