Daily Market Report by GulfBrokers 2020-2021

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Gold price headed for a third straight monthly gain and in this quarter gold is up more than 12% in global markets. During the previous week, the yellow metal gained almost 1.4%, driving investors toward the safe-haven metal. The gold price surged to 8 – year high this month as demand for the safe-haven asset was boosted by worries over a surge in Covid-19 infections and the price also supported by intensified tensions between the US and China, over the China-India border clash.

EQUITIES

Asian stocks climbed higher on Tuesday after better-than-expected manufacturing PMI data from China. China’s official manufacturing PMI unexpectedly rose to 50.9 in June from 50.6 in May, beating estimates pointing to a reading of 50.4. On Monday, Wall Street ended higher supported by the strong US pending home sales report.

OIL

Crude oil prices slipped on Tuesday, amid concerns over a second wave of coronavirus following easing lockdown restrictions in more countries.

CURRENCIES

The Australian dollar retreat from the earlier gains, the currency pair rose to a fresh day of 0.6885 during the Asian session after strong China PMI data. GBP/USD relatively unchanged during the European session after the British economy witnessed the largest drop in GDP since the third quarter of 1979.

GOLD

The yellow metal trading steady above $1770 on Tuesday, moving ahead to the North American session the gold traders will closely monitor the speech by Fed Chairman Jerome Powell in the US Congress.

Economic Outlook

On the data front, The UK economy recorded its largest contraction in more than four decades, official figures revealed on Tuesday. The Office for National Statistics said gross domestic product dropped by a quarterly 2.2 per cent in the first three months of 2020. Meantime, Switzerland's retail sales surged 6.6 per cent from a year earlier in May 2020, the sharpest increase since September 2008.

Moving ahead today, the important events to watch:

CANADA Gross Domestic Product – 12.30 GMT

US Consumer confidence– 14.00 GMT

US FED chair Powell testimony - 16.30 GMT

Coronavirus Update:

The number of people infected with COVID-19 across the world crossed 10.3 million, of which around 505 thousand have died, according to Johns Hopkins. The United States is the worst-affected country, with more than 2.59 million diagnosed cases and at least 125,768 deaths. Africa's confirmed cases of COVID-19 continued to climb to a new high of more than 371,000, including 9,484 deaths.

Technical Outlook

DOLLAR INDEX:
The greenback recovered from the previous session losses, at the time writing $DXY hovers around last week high the 97.75.

euraud


The important levels to watch for today: Support- 97.40 and 97.00 Resistance- 97.80 and 98.35.

EUR/USD: The currency pair edged lower on Tuesday and trading above 1.1200 during the European session.

cruse


The important levels to watch for today: Support- 1.1180 and 1.1140 Resistance- 1.1290 and 1.1320.

Quote of the day: Remember, your goal is to trade well, not to trade often- Alexander Elder.

Read more- https://gulfbrokers.com/en/daily-market-report-116
 
GBP/USD surged to fresh week-high of 1.2410 and testing the trend line. The GBP currently unchanged after the PMI report. The UK manufacturing PMI rebounded in June. 50.1, 40.7 (Previous).

Important Levels to watch today:
Support: 1.2360 and 1.2330
Resistance: 1.2440 and 1.2480
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European stocks and EUR/USD trading lower on Wednesday despite the release of the upbeat economic data. Germany Manufacturing PMI climbed higher to 45.2 in June of 2020 from a preliminary of 44.6 and 36.6 in the previous month and the German jobless rate ticked lower to 6.4% in June. While German retail Sales expanded at a monthly 3.8% during May, the biggest increase since February.

EQUITIES

Asian markets opened slightly higher on Wednesday. On Tuesday, Wall Street ended higher, the S&P 500 finished at 3,100.29, around 20 per cent for the quarter, the biggest gain since 1998. The stock markets in Hong Kong are closed for a holiday.

OIL

Crude oil prices rose on Wednesday after the API data showed crude inventories in the United States fell much more than expected. The American Petroleum Institute reported a larger-than-expected crude oil stock draw from previous 1.749M to -8.156M on June 26.

CURRENCIES

The commodity currencies like the Australian dollar and New Zealand dollar gained on Wednesday after Oil price jumped more than 1% and stronger than expected China's Caixin Manufacturing PMI.

GOLD

Spot gold climbed near an eight-year peak on Wednesday, as a spike in coronavirus cases in all over the world has cast a shadow on hopes for a quicker global economic recovery, driving inflows into safe-haven assets. The yellow metal gained more than 12% in the second quarter of 2020, its best quarter since end-March of 2016.

Economic Outlook

On Wednesday during the Asian session, a quarterly Bank of Japan survey showed Japanese manufacturers’ sentiment plunged to its lowest level in more than a decade, the manufacturers’ sentiment worsened to -34 in June — its lowest level since June 2009, as compared with -8 in March.

On the data front, on Tuesday, The US Consumer Confidence Index increased in June, after virtually no change in May. The index rose by 12.2 points to 98.1. Meantime, Jerome Powell, Chairman of the Federal Reserve, also testified on Capitol Hill, warning that without controlling the disease, the output will not return to pre-pandemic levels.

Moving ahead today, the important events to watch:

US ADP employment report - 12.15 GMT

US Manufacturing PMI - 13.45 GMT

US ISM Manufacturing PMI - 14.00 GMT

US Crude oil inventories - 14.30 GMT

US FOMC minutes - 18.00 GMT

Coronavirus Update:

The number of people infected with COVID-19 across the world crossed 10.45 million, of which around 505 thousand have died. The number of confirmed cases grew by 163,865 in the past 24 hours and the number of fatalities increased by 3,946. The biggest number of coronavirus cases was reported from the United States (2,537,636), Brazil (1,344,143), Russia (647,849), and India (566,840).

Technical Outlook

XAU/USD:
The yellow metal trading steady above $1780 on Wednesday and overall the momentum remained bullish throughout the day.

audusd


The important levels to watch for today: Support- 1780 and 1766 Resistance- 1792 and 1800.

GBP/USD: The currency pair surged to fresh week-high of 1.2410 and tested the trend line and at the time of writing the pair trading below 1.2400.

euraud


The important levels to watch for today: Support- 1.2360 and 1.2330 Resistance- 1.2440 and 1.2480.


Quote of the day: In the short run, a market is a voting machine but in the long run it is weighing machine- Benjamin Graham.

Read more- https://gulfbrokers.com/en/daily-market-report-117
 
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The U.S. package delivery giant FedEx (NYSE: FDX) reported better-than-expected fourth-quarter earnings results on Tuesday after the market close. While the company reported a loss of $334 million in its fiscal fourth quarter but its revenue surpassed the expectations as the Covid-19 pandemic continues to boost the online shopping.
  • Earnings per share (EPS) $2.53 vs. $1.52 expected
  • Revenue $17.4 billion vs. $16.4 billion expected

FedEx made $17.4 billion in revenue for the 2020 fiscal year’s fourth quarter, down from the $17.8 billion made the previous year’s quarter. FedEx Ground, which handles more e-commerce home deliveries, reported a 20% revenue increase for the quarter and a 17% drop in operating income.

“Though our fiscal fourth-quarter performance was severely affected by the COVID-19 pandemic, I am extremely proud of the herculean efforts of our team members,” said Fred Smith, chairman and CEO of FedEx, in a statement.

“While commercial volumes were down significantly due to business closures across the globe, there were surges in residential deliveries at FedEx Ground and in transpacific and charter flights at FedEx Express, which required incremental costs to serve,” FedEx said in its earnings release.

cruse


$FDX stock climbed more than 9% on Tuesday after the normal market hours as the company reported higher-than-expected earnings results. The FedEx shares have lost about 11% since the beginning of the year.

Read more- https://gulfbrokers.com/en/fedex-surprised-wall-street-with-stronger-than-expected-earnings
 
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The U.S. non-farm payrolls report is one of the most important data scheduled for release later today. The consensus is for an increase of 3 million non-farm payroll jobs, and for the unemployment rate to decrease to 12.3%. NFP measures employment levels in the United States that does not include farm workers, private household employees, or non-profits. In last month US NFP rise by 2.54 million rather than losing 8 million, the Unemployment rate fell to 13.3% from 14.7%, much better than -19.8% predictions. Unemployment in May dropped to 13.3%, down from April’s 14.7% print.

EQUITIES

Asian markets climbed higher on Thursday boosted by news about positive results of the COVID-19 vaccine from Pfizer and BioNTech. The Japanese Nikkei 225 benchmark rose 0.65%, Australia’s S&P ASX 200 index has climbed 1.49% and Hong Kong’s Hang Seng Index has advanced 1.59%.

OIL

Crude oil prices rose trading steady on Thursday after EIA data reported the largest weekly decline in US crude inventories in six months.

CURRENCIES

The US dollar is trading bearish against the major currencies and slipped to fresh week low after hitting a two-week high on Tuesday and the US dollar further direction will depend on NFP figures which will release later today.

GOLD

Gold price slips lower on Wednesday, easing from a near eight-year peak hit in the last session, as solid U.S. economic data and positive results from a coronavirus vaccine trial.

Economic Outlook

On the data front, on Wednesday, The ISM manufacturing report showed that economic activity in the manufacturing sector grew in June, June’s PMI registered 52.6, rising 9.5 percentage points from May’s reading of 43.1 and firmly overthrowing consensus at 49.5. While private-sector employment increased by 2,369,000 jobs in June, according to the ADP National Employment Report.

Moving ahead today, the important events to watch:

US employment report - 12.30 GMT

US weekly jobless claims - 12.30 GMT

Coronavirus Update:

The number of people infected with the coronavirus across the world rose towards 10.7 million, of which around 516 thousand have died. With more than 52,000 new COVID-19 cases in the United States alone in the past 24 hours, according to a Johns Hopkins University tally. Brazil has overtaken the United States as the country with the highest Covid-19 death tool, recording nearly 800,000 deaths.

Technical Outlook

XAU/USD:
The yellow metal trading steady above $1770 on Thursday after it dropped to $1760 during the previous session.

audusd


The important levels to watch for today: Support- 1760 and 1753 Resistance- 1778 and 1792.

GBP/USD: The British Pound was among the best-performer currency pair during this week and the pair trading above steady above 1.2500 during the European session.

cruse


The important levels to watch for today: Support- 1.2490 and 1.2430 Resistance- 1.2540 and 1.2600.

Quote of the day: Sometimes by losing a battle you find a new way to win the war- Donald Trump.


Read more- https://gulfbrokers.com/en/daily-market-report-118
 
Important technical levels to watch today ahead of NFP.

GBP/USD 1.2540 and 1.2480

XAUUSD $1790 and $1760

EUR/USD 1.1350 and 1.1240

DowJones 26050 and 25600
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Hi! I sometimes come in and read your reports. It's actually very cool, you make your reports very informative and substantial. During this time, I found a lot of useful information in them that really helped me. So thank you, man, you're doing a really cool job here. Keep up the good work!
 
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U.S. stock markets are closed Friday in observance of Independence Day. Both the New York Stock Exchange (NYSE) and NASDAQ will be closed on Friday. Overall trading becomes a bit subdued as the US is on holiday and expects low and unusual volatility in the global markets today.

EQUITIES

Asian stock markets extend gains on Friday fueled by a strong US and China economic data and on hopes about a potential vaccine. On Thursday, US stocks ended higher after data showed the economy added 4.8 million jobs in June.

OIL

Crude oil prices traded steady this whole week supported by the data showed the US crude stocks plunged 7.2 million barrels from a record high last week.

CURRENCIES

The US dollar rebounded from one week low supported by the publication of a large number of positive macroeconomic statistics from the United States. Meantime, the Australian dollar and New Zealand dollar climbed higher boosted by strong China economic data and Australia retail sales report.

GOLD

Gold price recovered from the previous session losses, the yellow metal slipped to $1760 on Thursday after a stronger-than-expected US employment report.

Economic Outlook

On the data front, the China Caixin/Markit services PMI rose to 58.4 in June from 55.0 in May and the Japan June Services PMI came in at 45.0, compared with a preliminary figure of 37.9 and after a final 27.8 a month earlier. While Australia retail sales witnessed a record surge in May as economy reopens. Retail sales jumped a seasonally adjusted 16.9% in May, from April 17.7%.

On Thursday, the US jobs report for June showed 4.8 million jobs added beating the 3 million expectations. Unemployment in June fell to 11.1% from 13.3% in May.

Coronavirus Update:

The number of people infected with COVID-19 across the world crossed 10.8 million, of which around 520,000 have died, according to Johns Hopkins. The United States has reached a daily global record for the coronavirus pandemic — reporting more than 55,000 new COVID-19 cases and overall on July 1, 196,000 new cases were reported worldwide — the highest single-day figure ever recorded since the start of the pandemic. Germany, Italy, and Spain reported 1,027 new cases on Thursday, which was down from 1,062 new cases on Wednesday.

Technical Outlook

XAU/USD:
The yellow metal trading unchanged on Friday due to US markets holiday.

audusd


The important levels to watch for today: Support- 1765 and 1758 Resistance- 1778 and 1792.


GBP/USD: The British Pound retreat from the top and trading near the short term support of 1.2430.

cruse


The important levels to watch for today: Support- 1.2430 and 1.2400 Resistance- 1.2480 and 1.2530.


Quote of the day: The intelligent investor is a realist who sells to optimists and buys from pessimists- Benjamin Graham.

Read more- https://gulfbrokers.com/en/daily-market-report-119
 
Australian dollar is touching the 0.693 zone amid the upbeat data from china services PMI and Australian retail sales. Albeit the covid-19 cases are on the rise in Victoria. The gains are restricted i think. Does anyone has any idea or sense of the AUDUSD forecast? Please share.
 
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