Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

US Dollar hits a fresh 16-month high ahead of one of the most awaited economic events of the week, Minutes from the Federal Reserve's November meeting and US GDP figures.

EQUITIES

Wall Street ended higher on Tuesday boosted by the rebound in crude oil and better-than-expected economic data. The upside momentum is also supported by the better-than-expected US manufacturing PMI data. The US Manufacturing PMI increased by 59.1 in November from a 10-month low of 58.4 in October.

OIL

Crude oil prices holding the previous session gains. Oil prices bounced on Tuesday after the US announced a 50 million barrels release of oil from the Strategic Petroleum Reserves of which 32 million barrels will be exchanged over the next several months

CURRENCIES

In the currency market, the Euro remained under pressure against the major currency pairs following the release of weaker-than-expected German IFO business climate data. The British pound slightly recovered from the previous session losses while the currency pair struggled to break above 1.3400 as the investors widely expect that the BOE will hike interest rates during the next monthly meeting.

GOLD

Gold price stays below the $1800 psychological level ahead of US FOMC minutes. Overall, momentum remains bearish as the US dollar hovers near its highest in 16 months.

Economic Outlook

On the data front, the Reserve Bank of Australia increased the official cash rate by 0.25 per cent to 0.75 per cent. RBNZ anticipate raising 75 basis points in the next three meetings to leave the cash rate (OCR) at 1.5 per cent by June 2022.

"Further removal of monetary policy stimulus is expected over time given the medium-term outlook for inflation and employment" – RBNZ policy committee said.

Moving ahead today, the important events to watch:

US – GDP: GMT – 13.30

US – Durable good orders: GMT – 13.30

US – FOMC meeting minutes: GMT – 19.00

Coronavirus update:

Worldwide, more than 257 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 46.9 million cases and has had more than 765,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: Considering the recently strong bearish momentum, the currency pair is trading near the critical demand zone on the weekly time frame. So, there may be the chance the pair can find strong buyers below this year's low 1.1220.

The important levels to watch for today: Support- 1.1230 and 1.1200 Resistance- 1.1270 and 1.1300.

GOLD: On the daily time frame, the gold is currently supported at $1780, and the resistance is around $1810. On the upper side, the long-term buyers should wait for a daily close above the $1815.

The important levels to watch for today: Support- 1780 and 1772 Resistance- 1797 and 1805.

Quote of the day - In the long run, it's not just how much money you make that will determine your future prosperity. It's how much of that money you put to work by saving it and investing it - Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-408

 

[syamfx2020]

Global shares fell on Friday morning and the Dow Jones futures plunged almost 500 points over fears about the economic impact of the new variant of the COVID-19 outbreak. US Crude oil futures also fell more than 2% as investors become more worried about a resurgence in global infections of COVID-19 and tighter restrictions on demand for fuel.

The variant, which is being known as the B1.1.529 variant and it has been detected in South Africa. The variant has also been found in Botswana and Hong Kong in travellers from South Africa. The World Health Organization’s technical working group is to meet Friday to assess the new variant.

"This is the most significant variant we have encountered to date and urgent research is underway to learn more about its transmissibility, severity and vaccine-susceptibility," said Jenny Harries, chief executive of the UK Health Security Agency.

Read more here - https://gulfbrokers.com/en/global-shares-and-oil-prices-sink-on-fears-of-new-covid-variant

 

[syamfx2020]

Global markets sharp sell-off in the last Friday triggered by over a new wave of Coronavirus outbreak. This week would be critical in determining how the countries going to battle against the new variant. The WHO has also given the variant, B.1.1.529, the name of Omicron.

On the other hand, one of the important events for this week will be the OPEC+ meeting. This event will take place on Thursday and we could expect to hear comments from the OPEC leaders throughout the event.

On the earnings front, the companies due to release their results will be the cloud-based data storage and analytics service provider Snowflake (NYSE: SNOW) and the Cybersecurity technology company Crowdstrike (NASDAQ: CRWD) will be among those reporting earnings this week.

GOLD

The safe-haven metal is expected to trade higher if the metal holds above $1755 as the ongoing threat posed by the new COVID-19 variant may keep the precious metal afloat as the outbreak continues to drag on the global supply chain.

This week, the key resistance for gold is located above $1815, a break above this level will confirm a possible move to $1832/40. On the downside, if the metal loses the $1755 handle, then we expect a move toward $1735/15.

DOLLAR INDEX

In this week, USD traders are expected to be highly concerned about the US economic health going forward. On the other hand, the traders and investors will also pay attention to the important event for the USD this week, the US employment report on Friday.

Technically the overall momentum remained bearish for the Index after the bulls failed to extend the rally. In the short term, if the price breaks below 95.70 which would open doors towards 95.50 and 95.00. On the upper side, the first immediate resistance can be found at 96.50 and then 96.90.

EURUSD

During the last week, the currency pair rebounded from a fresh 16- month low and ended in positive territory. The currency pair holding the previous week gains. At the time of writing, the pair trades steady above 1.13000.

This week, the first resistance is located for the pair around 1.1320, a break above this level will confirm a possible move to 1.1370/1.1420. On the downside, any meaningful pullback now seems to find some support near the 1.1250 zones, below which the slide could further get extended towards the 1.1220/00 region.

Read more- https://gulfbrokers.com/en/global-markets-weekly-outlook

 

[syamfx2020]

Bitcoin (BTC) dropped more than 15% in the last two weeks. The cryptocurrency hits a fresh all-time high of above 68,000 this month. At the time of writing, $BTCUSD is trading below the $60000 psychological level.

The recent bearish sentiment started after the U.S. Securities and Exchange Commission rejected a Bitcoin spot ETF and the US recently implemented the infrastructure bill to include crypto activities within the regulatory scope of the Internal Revenue Service (IRS).

Technically the overall momentum remains mixed after the pair witnessed sustained downside pressure over the past 2 weeks.

Read more here - https://gulfbrokers.com/en/bitcoin-would-make-a-new-high-if-it-can-hold-above-50k

 

[syamfx2020]

December is here, mostly it’s a month of reflection and relaxing. And when it comes to trading the volatility in the markets is expected to be very low after the second half of the month due to less trading activity. So, these days you need to have the Patience to find the most probable trading setups. We wish you a great month of trading.

EQUITIES

Wall Street ended sharply lower on Tuesday after US FED chair Powell stated that US central bankers would discuss ending bond purchases in December, a few months earlier than expected.

OIL

Crude oil prices struggling to find the upside momentum after the API inventory report, focus shifts to OPEC+ meeting. The API data showed a draw of 747,000 barrels for the week ending Nov. 26.

CURRENCIES

In the currency market, the Euro recovered after a steep fall in the previous trading session. Meanwhile, ECB Vice President Luis de Guindos indicated that any interest rate increase would only come “shortly after” quantitative easing ends. “I’m confident that those net purchases will continue throughout next year. Beyond that, I don’t know,” de Guindos said.

GOLD

The safe-haven metal hits a new session high of $1794. On Tuesday, the metal fell below the $1780 level following the hawkish remarks from Federal Reserve chair Jerome Powell.

Economic Outlook

On the data front, Australia reported the latest GDP numbers. The GDP came -1.9% in the last quarter, better than expectation of -2.7%.

Moving ahead today, the important events to watch:

US –ADP employment report: GMT – 13.15

US – ISM manufacturing PMI: GMT – 15.00

Coronavirus update:

Worldwide, more than 262 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 48 million cases and has had more than 775,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

Dollar Index: The index trades flat on Wednesday. Moving ahead to the North American session, the USD traders should closely monitor the release of U.S. ADP data.

The important levels to watch for today: Support- 95.75 and 95.50 Resistance- 96.20 and 96.45.

GOLD: The precious metal trades above $1785. For today, as long as the metal trades above $1768 levels, the medium-term uptrend will remain in place. On the downside, $1776 is the immediate support level, followed by $1770. Further selling pressure will intensify only if the metal break below $1768 levels again.

The important levels to watch for today: Support- 1776 and 1770 Resistance- 1786 and 1795.

Quote of the day - "Learn to take losses. The most important thing in making money is not letting your losses get out of hand." -Marty Schwartz.

Read more - https://gulfbrokers.com/en/daily-market-report-409

 

[syamfx2020]

Global markets were rocked by concerns that a recent spike in the Omicron variant of COVID-19 cases could threaten the global economic recovery. The variant was first detected in South Africa last week and as per the latest update Omicron is now spread to about 20 other countries.

“We need to use the tools we already have to prevent transmission and save lives from Delta. And if we do that, we will also prevent transmission and save lives from Omicron,” - WHO chief Tedros Adhanom Ghebreyesus said.

EQUITIES

Asian stocks fell Thursday morning while US stock futures slightly rebounded from the early session lows. On the earnings front, the shares of cloud-based data storage Snowflake (NYSE: SNOW) jumped more than 15% in late trading after the company reported better-than-expected Q3 earnings results.

OIL

Crude oil prices unchanged ahead of the OPEC+ decision scheduled for later today. The overall sentiment of oil prices is still bearish mainly due to the concerns over the Omicron variant.

CURRENCIES

In the currency market, the dollar gained for a second straight day against a basket of currencies as investors continued to take shelter in the U.S. currency. Commodity-linked currencies such as the Australian and Canadian dollars trades near the weekly low against the US dollar.

GOLD

The safe-haven metal trades lower on Thursday as traders wait for U.S. jobs data but concerns over the economic fallout from the pandemic limited the losses.

Economic Outlook

On the data front, the US released the latest ADP employment report on Wednesday. The data showed private US employers added 534,000 jobs in November, a better reading than the 525,000 jobs expected. On the other hand, ISM Manufacturing PMI rose to a reading of 61.1% in November from 60.8% in October.

Moving ahead today, the important events to watch:

EUROZONE – Unemployment rate: GMT – 10.00

US – Jobless claims: GMT – 13.30

Coronavirus update:

Worldwide, more than 262 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 48 million cases and has had more than 775,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: Technically the overall momentum remains mixed, the immediate support for the Euro stands near the level of 1.1300. On the flip side, the first resistance at 1.1340 any break above this level will open 1.1370 minimum.

The important levels to watch for today: Support- 1.1300 and 1.1270 Resistance- 1.1340 and 1.1370.

GOLD: The precious metal now trading below the $1,770 level, with immediate support near the $1,762. On the flip side, the key resistance area to watch is $1795.

The important levels to watch for today: Support- 1768 and 1762 Resistance- 1780 and 1795.

Quote of the day - The whole secret to winning and losing in the stock market is to lose the least amount possible when you are not right- William O’Neil.

Read more- https://gulfbrokers.com/en/daily-market-report-410

 

[syamfx2020]

Gold price trades near the key support area. In case the gold price manages to hold above $1760, the metal is expected to rebound back to $1800. On the downside, the immediate support is near $1766 then $1760.

 

[syamfx2020]

The dollar index, which tracks the U.S. currency against six major peers holds steady ahead of US employment report. The Labor Department is scheduled to release data on nonfarm payrolls (NFP) at 13:30GMT.

For today, If the bullish momentum continues then the next upside level is to watch 96.20 and 96.50. On the flip side, a breakdown through 95.70 would negate that bias and suggest a test of the 95.50 and 95.25 support regions.

EQUITIES

US stock futures holding the previous session gains as investors remained cautious ahead of the release of key U.S. employment data later in the day. On Thursday, Wall Street ended higher let by travel stocks. Meanwhile, the overall momentum remained under pressure for the whole week except the Thursday gains.

OIL

Crude oil prices recovered after the market participants expect OPEC+ to hold back on increasing crude production during the month of January if demand suffered from measures to contain the Omicron variant.

CURRENCIES

In the currency market, the British pound tinkering around just below the 1.33 handle. The Euro flat against the US dollar following the release of weaker-than-expected Eurozone and Germany services PMI numbers.

GOLD

The safe-haven metal has been relatively volatile in the past few days. At the time of writing, the metal was trading below $1770.The future direction of the gold price will depend on NFP figures today.

Economic Outlook

On the data front, the Labor Department reported the latest US jobless claims data. The data showed the Jobless claims climbed by 28,000 to 222,000 from the previous week's 52-year low of 194,000.

Moving ahead today, the important events to watch:

US – Nonfarm payrolls: GMT – 13.30

US – ISM services PMI: GMT – 15.00

Coronavirus update:

Worldwide, more than 263 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 48.6 million cases and has had more than 780,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

NZDUSD: The currency pair trades hovers near the previous week lows. If the pair break below the previous week low the next immediate downside area is to watch 0.6750 and 0.6720.

The important levels to watch for today: Support- 0.6750 and 0.6720 Resistance- 0.6800 and 0.6830.

GOLD: The precious metal now trading below the $1,770 level, the key support remains below the previous session low of $1760. On the flip side, the immediate resistance is located above $1782, a break above this level will confirm a possible move to $1794.

The important levels to watch for today: Support- 1762 and 1755 Resistance- 1782 and 1795.

Quote of the day - “You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ” - Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-411

 

[syamfx2020]

US Airline and cruise line stocks slightly rebounded on Thursday after the last few days downside move, helped by positive comments from US president Joe Biden. He said his plan to fight the new Omicron Covid cases during the winter doesn’t include shutdowns or lockdowns. The first known U.S. case of the Omicron variant was detected in California, the Centers for Disease Control and Prevention confirmed Wednesday.

“We are going to fight COVID-19 not with shutdowns or lockdowns – but with more widespread vaccinations, boosters, testing and more” Biden said on Thursday.

During the last few days, the travel stocks plunged after a new set of travel bans are taking effect as governments around the world worry about the spread of the new Omicron variant of the coronavirus. The Airline giants American Airlines, United and Delta and cruise operators Carnival, Royal Caribbean and Norwegian shares dropped more than 10% early this week.

Read more- https://gulfbrokers.com/en/travel-stocks-rebound-after-the-steep-selloff

 

[master che]

I'm searching for a reliable FX broker
Any suggestions??