Daily Market Report by GulfBrokers 2020-2021

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America’s biggest retailer Walmart (NYSE: WMT) is scheduled to announce first-quarter financial results on Tuesday before the bell. Consensus forecast EPS of $1.21 on revenue of $131.8 Billion. $WMT stock closed slightly lower on Monday and the stock’s 52-week low $117.01 and high $153.66.

EQUITIES

Asian and European shares traded higher on Tuesday while the US stock futures struggling to find the upside momentum ahead of FOMC minutes.

OIL

Crude Oil prices trading steady ahead of the API data today. During the last week, the API data showed a 2.5-million-barrel decline in US weekly inventories, versus a draw of 2.8 million barrels expected by analysts.

CURRENCIES

In the currency market, the British pound climbs to above 1.4200 on Tuesday supported by better-than-expected UK employment data and the weaker US dollar. The UK unemployment rate came at 4.8% in the three months to March of 2021, lower than market forecasts of 4.9%.

GOLD

The Safe haven metal slightly retreated from the early session highs, during the Asian session the metal bounced to a fresh monthly high of $1873 boosted by the dollar weakness and amid declining US Treasury yields.

Economic Outlook

On the data front, Japan reported weaker-than-expected GDP data. The GDP dropped to 1.3% in the first quarter, compared with estimates of a 1.2% fall.

During the Asian session, the Reserve bank of Australia released the last meeting minutes. The minutes showed the central bank's board viewed the conditions for a rate rise as unlikely to be met "until 2024 at the earliest."

Moving ahead today, the important events to watch:

US – Building permits: GMT – 12.30

US – Housing starts: GMT – 12.30

Coronavirus update:

Worldwide, more than 163 million people have been confirmed infected and more than 3.3 million have died. The United States has confirmed over 32.9 million cases and has had more than 586,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

Dollar Index:
The US dollar remained under selling pressure against its pairs. The next crucial support level to watch $89.70 and 89.40.

DXY


The important levels to watch for today: Support-89.70 and 89.40 Resistance- 90.10 and 90.40.

GOLD: The yellow metal hovers near the $1870 area. The near-term resistance is around $1875, any break over targets $1880/$1890. Overall, the momentum remained bullish throughout the Asian session.

gold neww


The important levels to watch for today: Support- 1863 and 1855 Resistance- 1875 and 1882.

Quote of the day: Markets can remain irrational longer than you can remain solvent. -John Maynard Keynes.

Read more- https://gulfbrokers.com/en/daily-market-report-308
 
Gold nice move after it breaks above 1860. At the time of writing, the metal slightly retreats from near the 1875 resistance area.

The key levels to watch today 1863 and 1875.
gold neww.PNG
 
The currency pair slightly retreat after it failed to hold above 0.7800.

key technical levels to watch

Support: 0.7760 and 0.7730/0.77

Resistance: 0.7815 and 0.7850

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The UK and Eurozone released the latest CPI figures on Wednesday. The UK inflation rate increased by 1.5% in April, the highest since March 2020 and above market expectations of 1.4%. While Eurozone inflation grew by 1.6% year-on-year increase, up from 1.3% year-on-year in March. On the other hand, last week, data showed U.S. consumer prices jumped to an annual rate of 4.2% in April, the strongest inflation rate since 2008.

Moving ahead to the North American session, CANADA will release the April month consumer inflation figures at 12.30 GMT.

EQUITIES

Wall Street ended lower on Tuesday as investors remain concerned about the higher inflation. Today the traders and investors waiting for the minutes from the US Federal Reserve’s April policy meeting to know the FED policymakers view about the inflation pressures.

OIL

Crude Oil prices extend lower following the release of API inventory data. The data showed that the oil inventories in the US increased by 0.62 million barrels in the week ended May 14th of 2021, following a 2.53 million drop in the previous week.

CURRENCIES

In the currency market, the US dollar Index struggling to move above the psychological level 90 ahead of FED minutes. Meanwhile, the British pound fell to a fresh session low of 1.4164 following the release of UK inflation data.

GOLD

The Safe haven metal trading slightly lower on Wednesday after the US dollar gained bullish momentum.

Economic Outlook

On the data front, the US Census Bureau and the US Department of Housing and urban development released the April Building permits and Housing starts data. The data showed the US building permits increased by 0.3% to 1760k in April, slightly below the expectation of 1770k. While housing starts dropped -9.5% to 1569k, well below the expectation of 1710k.

Moving ahead today, the important events to watch:

CANADA – CPI: GMT – 12.30

US – EIA crude inventories: GMT – 14.30

US – FOMC meeting minutes: GMT – 18.00

Coronavirus update:

Worldwide, more than 163 million people have been confirmed infected and more than 3.39 million have died. The United States has confirmed over 32.9 million cases and has had more than 587,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair retreat back to near 1.2200 area. Any break below 1.2200 will open the doors to 1.2180 and 1.2120. On the upper side, the immediate resistance at 1.2250.

eurusd


The important levels to watch for today: Support-1.2180 and 1.2120 Resistance- 1.2250 and 1.2280.

GOLD: The precious metal retreated back to below $1860 after the metal failed to break above $1875. Overall, the momentum remains bearish throughout the European session.

gold neww


The important levels to watch for today: Support- 1843 and 1830 Resistance- 1875 and 1882.

Quote of the day: “Games are won by players who focus on the playing field – not by those whose eyes are glued to the scoreboard.” - Warren Buffett.

Read more- https://gulfbrokers.com/en/daily-market-report-309
 
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Squarespace (NYSE: SQSP) shares closed 10% lower in its market debut on Wednesday driven by a broader market sell-off. The website builder and web hosting company raised $6.5 billion in its initial public offering. $SQSP opened at $48 on Wednesday, below the reference price of $50.

Squarespace helps customers create their own websites efficiently and provide e-commerce and marketing functions. The company revenue in 2020 is $621 million, up from $485 million a year ago and the company expects revenue between $ 186 million and $ 189 million in the second quarter of 2021.

EQUITIES

US stock futures and Asian shares struggling to find the upside momentum following the latest comments from US Federal Reserve officials.

On the earnings front, Target (NYSE: TGT) shares climb to a new all-time high of $219.80 on Wednesday after the company Q1 Earnings and revenue beat Wall Street estimates.

OIL

Crude Oil prices slightly rebounded while the bearish momentum continues after the release of EIA and API inventory data. 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 1.321 million barrels in the May 14th week.

CURRENCIES

In the currency market, the US dollar index rebounded from the 3-month low on Wednesday following the release of FOMC minutes. The Australian dollar recovered from the previous session lows supported by better-than-expected employment data.

GOLD

The Safe haven metal retreat after the release of FED minutes while the overall, momentum remains bullish throughout this week.

Economic Outlook

On the data front, during the Asian session, the People's Bank of China (PBoC) left its benchmark interest rates unchanged, as widely expected. The one-year loan prime rate (LPR) was left unchanged at 3.85%, while the five-year remained at 4.65%.

On Wednesday, the US federal reserve released the April month meeting minutes. The minutes showed some FED Policymakers said it might be appropriate at some point in upcoming meetings to begin discussing a tapering plan if the inflationary pressures persist.

Moving ahead today, the important events to watch:

US – Jobless claims: GMT – 12.30

US – Philly Fed manufacturing index: GMT – 12.30

Coronavirus update:

Worldwide, more than 164 million people have been confirmed infected and more than 3.4 million have died. The United States has confirmed over 32.9 million cases and has had more than 587,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair trading below the 1.2200 zones. If the bearish momentum continues the next downside levels to watch 1.2140 and 1.2110.

eurusd


The important levels to watch for today: Support-1.2160 and 1.2120 Resistance- 1.2200 and 1.2220.

GOLD: The safe-haven metal slightly retreated from the 15-week highs and If the US dollar continues the upside move, that could push gold back to near $1840 area.

gold neww


The important levels to watch for today: Support- 1863 and 1852 Resistance- 1882 and 1890.

Quote of the day: “The whole secret to winning and losing in the stock market is to lose the least amount possible when you’re not right.” – William J. O’Neil.

Read more- https://gulfbrokers.com/en/daily-market-report-310
 
The currency pair retreat back to below 1.2180 after it failed to break above the Feb high of 1.2243. If the bearish momentum continues the next downside levels to watch 1.2140 and 1.2110.

eurusd.PNG
 
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