Daily Market Report by GulfBrokers 2020-2021

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The US dollar trades back to near yesterday’s low. During the previous session, the Index slightly rebounded following the upbeat US retail sales and jobless claims data.

Moving ahead to the North American session, the main important events watch for USD traders today, US Building permits numbers and Michigan consumer sentiment figures for April.

On Wednesday, the US Commerce Department published the March retail sales data. The data showed the retail sales increased by 9.8% last month to US$619 billion compare to the market forecasts of a 5.9% gain. The strong numbers boosted by the massive stimulus package approved in early March.

On the other hand, the US initial jobless claims dropped from the prior week’s 769,000 to 576,000. Analysts had predicted a reading of 700,000.

Dollar Index Technical analysis

For the USD technical analysis please visit here- https://gulfbrokers.com/en/us-dollar-struggling-near-9150-despite-strong-retail-sales-data
 
I have to say I think the dollar has lots of room to move down to take liquidity around 88.00. I think it might be going down for a time yet
 
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The EURUSD jump to above 1.2000 psychological level on Monday. The main attraction for EURO this week, the ECB Monetary policy statement and press conference on Thursday.

EQUITIES

Chinese shares ended higher on Monday boosted by strong economic data while the US futures trading slightly lower on concerns about rising COVID-19 cases in India, the Philippines, and other countries.

On the earnings front, Coca- Cola (NYSE: KO) reporting earnings today before the bell while IBM (NYSE: IBM) and United Airlines (NASDAQ: UAL) is scheduled to report results after the market close.

OIL

Crude oil prices trading unchanged on Monday. During the last week, the oil prices climb to fresh monthly highs supported by larger than expected crude inventories and the weaker dollar.

CURRENCIES

In the currency market, the US dollar index plunged to a fresh monthly low of 91.20 on Monday. On the other hand, the commodity currencies Australian dollar and New Zealand dollar hit new weekly high boosted by the gold price and stock market rally.

GOLD

The Safe-haven metal extends higher on Monday after the yield on the benchmark 10-year Treasury note edged down to 1.56%.

Economic Outlook

On the data front, Japanese exports grew by 16.1% YoY during March, the sharpest rise since November 2017. Meanwhile, the imports rose by 5.7% YoY to a 14-month high over the same period.

This week the main highlights of the economic calendar will be the European Central Bank and Bank of Canada meeting, UK employment and retail sales figures, manufacturing PMI data from the US, UK, and Eurozone.

Coronavirus update:

Worldwide, more than 140 million people have been confirmed infected and more than 3 million have died. The United States has confirmed over 31.62 million cases and has had more than 566,00 deaths from COVID-19, the highest totals in the world.

Technical Outlook

DOLLAR INDEX:
The Index trading near the short-term support area 91.00. Any break below this level the next strong support area near 90.60/50. On the flip side, the immediate resistance at 91.30.

DXY


The important levels to watch for today: Support- 91.00 and 90.60 Resistance- 91.30 and 91.60.

GOLD: The yellow metal trading above $1780 area during the European session, if the bullish momentum continues the next upside levels to watch the $1795 and $1802 zone. On the flip side, the immediate support at $1780/74.

gold neww


The important levels to watch for today: Support- 1783 and 1774 Resistance- 1795 and 1802.

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-288
 
This week the key events to watch ECB and BoC central bank meetings.

Key US earnings to watch: Netflix, snap, Intel and Johnson and Johnson.

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Last week wall street celebrated blowout earnings results from the six American, investment banks including Goldman Sachs, JP Morgan, Bank of America, Wells Fargo, Citigroup, and Morgan Stanley. Most surprisingly all the big banks reported better-than-expected Q1 financial results.

Read the detailed report here with the technical chart -
 
GOLD
Support: $1754 & $1745 Resistance $1784 & $1795/1808
gold neww.PNG

EURUSD
Support: 1.2010/1.1990 & 1.1940/10 Resistance: 1.21 & 1.2170
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Dollar Index
Support: 90.65 & 90.30/00 Resistance: 91.40 & 91.80
DXY.PNG
 
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The UK unemployment rate dropped to 4.9% in February, according to new data from the Office for National Statistics, from 5.0% in January. While the number of employees on payrolls fell by 56,000 in March compared to the previous month.

EQUITIES

US stock futures and European shares trading lower on Tuesday, amid concerns about rising COVID-19 cases in Europe and Asian countries. This week the worldwide coronavirus death toll has hit 3 million. "It took nine months to reach one million deaths; four months to reach two million, and three months to reach three million," the WHO chief said.

On the earnings front, Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT) reporting earnings today before the bell while Netflix (NASDAQ: NFLX) is scheduled to report results after the market close.

OIL

Crude oil prices slightly retreat from the fresh session high. Moving ahead to the North American session, the Investors now await the weekly API report on US crude oil stockpiles due later in the day.

CURRENCIES

In the currency market, the EURUSD hit the fresh month high of 1.2078 supported by the weaker dollar while the long-term direction of the currency pair depends upon Thursday’s ECB monetary policy meeting.

GOLD

The Safe-haven metal rebounded back to above $1770 after it dropped to near the short-term support area of $1763. Overall, the momentum remains bullish supported by rising coronavirus cases in some countries.

Economic Outlook

On the data front, China central bank kept its benchmark lending rates unchanged. The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate was maintained at 4.65 percent.

During the Asian session, the Reserve Bank of Australia released the last meeting minutes. “Members agreed to have a broader discussion of the implications of climate change for financial stability in coming months,” the RBA minutes said.

Coronavirus update:

Worldwide, more than 141 million people have been confirmed infected and more than 3 million have died. The United States has confirmed over 31.62 million cases and has had more than 567,00 deaths from COVID-19, the highest totals in the world.

Technical Outlook

DOLLAR INDEX:
The Index slightly rebounded from the fresh monthly lows. At the time of writing, the USD trading above 91.00.

DXY


The important levels to watch for today: Support- 90.80 and 90.60 Resistance- 91.30 and 91.60.

GOLD: The yellow metal trading above $1770 area during the European session, if the bullish momentum continues the next upside levels to watch the $1783 and $1790 zone. On the flip side, the immediate support at $1760/58.

gold neww


The important levels to watch for today: Support- 1763 and 1758 Resistance- 1783 and 1792.

Quote of the day: “To be a successful business owner and investor, you have to be emotionally neutral to winning and losing. Winning and losing are just part of the game.” Robert Kiyosaki.

Read more- https://gulfbrokers.com/en/daily-market-report-289
 
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The Canadian dollar tumbles ahead of the Bank of Canada interest rate decision and policy statement which is set to be announced at 14.00 GMT. The central bank is generally expected to be holding interest rates unchanged at 0.25%.

EQUITIES

Asian stock markets followed Wall Street lower on Wednesday as surging coronavirus infections in the Asian countries and several European countries tempered investor optimism about the global economic recovery.

On the earnings front, Netflix (NASDAQ: NFLX) shares dropped more than 10% in after-market trading after the company posted lower-than-expected first-quarter subscriber growth.

OIL

Crude oil prices reversed from the fresh weekly highs on renewed concerns about global fuel demand amid worsening outbreaks in India and other Asian countries. On the other hand, the US API data showed the oil inventories increased by 0.436 million barrels in the week ended April 16th, 2021.

CURRENCIES

In the currency market, the US Dollar Index trading steady above 91.00 on Wednesday boosted by the weakness in the US equity market. Meanwhile, the British pound trading unchanged following the mixed UK inflation data.

GOLD

The Safe-haven metal slightly retreats from the daily highs. Overall, the momentum remains bullish supported by the latest reports showing spikes in coronavirus cases in several parts across the world.

Economic Outlook

On the data front, the UK inflation increased by 0.7 per cent in March of 2021 from 0.4 per cent in February and below market expectations of 0.8 per cent. While the UK producer price index increased 1.9 per cent year-on-year in March 2021.

Moving ahead today, the important events to watch:

Canada – CPI: GMT – 12.30

Canada – BoC interest rate decision: GMT – 14.00

US – EIA crude inventories: GMT – 14.30

Coronavirus update:

Worldwide, more than 142 million people have been confirmed infected and more than 3 million have died. The United States has confirmed over 31.7 million cases and has had more than 567,700 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair retreats back to near the 1.20 psychological level after the safe-haven US Dollar rebounded from the 7-week lows.

eurusd


The important levels to watch for today: Support- 1.1985 and 1.1960 Resistance- 1.2045 and 1.2190.

GOLD: The yellow metal trading above the $1780 area during the European session after the metal failed to break above the weekly high of $1789.

gold neww


The important levels to watch for today: Support- 1783 and 1774 Resistance- 1790 and 1795.

Quote of the day: “Investing puts money to work. The only reason to save money is to invest it.” — Grant Cardone.

Read more- https://gulfbrokers.com/en/daily-market-report-290
 
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Today’s session in Europe will see most of its attention turns toward the important ECB Monetary Policy Statement which is set to be released at 11:45 GMT. Along with this release will see the ECB president Christine Lagarde Conference 45-minutes after at 12:30. The central bank is likely to leave rates unchanged at 0.00% while the investors are eagerly waiting for the comments from the ECB president.

EQUITIES

European shares opened higher ahead of ECB monetary policy decision. On the other hand, Wall Street ended higher on Wednesday following the sell-off in the previous session.

On the earnings front, American Airlines (NASDAQ: AAL) and AT&T (NYSE: T) reporting earnings today before the bell while Snap (NYSE: SNAP) and Intel (NASDAQ: INTC) is scheduled to report results after the market close.

OIL

The crude oil prices trading lower for the third consecutive day as the number of coronavirus infections is continuing to climb higher across Asia, raising fears that governments could reimpose restrictions again which could further impede recovery in oil demand. Meanwhile, EIA data showed on Wednesday the US crude inventories rose by 0.594 million barrels last week.

CURRENCIES

In the currency market, the EURO rebounded back to above 1.2040 after the European Union resumed its usage of the Johnson & Johnson vaccine. While the Canadian trading strong against the US dollar on Thursday following the Hawkish comments from the Bank of Canada.

GOLD

The Safe-haven metal climb to a fresh monthly high on Wednesday supported by the weaker dollar and virus concerns across Asia.

Economic Outlook

On the data front, the bank of Canada left interest rates unchanged at the April policy meeting but tapered asset purchases by 1 billion. The central bank is expecting Canada’s real GDP growth to touch 6.5% in 2021, and then moderate to around 3.75% in 2022 and 3.25% in 2023.

"Vaccines are rolling out, and there are brighter, brighter days ahead and reflecting that we have revised up our outlook," BoC, Governor Tiff Macklem said.

Moving ahead today, the important events to watch:

Eurozone – ECB interest rate decision and statement: GMT – 11.45

US – Jobless claims: GMT – 12.30

US – Existing home sales: GMT – 14.00

Coronavirus update:

Worldwide, more than 142 million people have been confirmed infected and more than 3 million have died. The United States has confirmed over 31.7 million cases and has had more than 567,700 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair bounced from the psychological support area 1.2000. On the upper side, the important levels to watch 1.2080 and 1.2100.

eurusd


The important levels to watch for today: Support- 1.2020 and 1.1960 Resistance- 1.2080 and 1.2110.



GOLD: The yellow metal trading extremely near to the $1900 crucial resistance area. Overall, the momentum remained bullish throughout this week.

gold neww


The important levels to watch for today: Support- 1783 and 1774 Resistance- 1800 and 1806.

Quote of the day: “You need to know very well when to move away, or give up the loss, and not allow the anxiety to trick you into trying again.” – Warren Buffett.

Read more- https://gulfbrokers.com/en/daily-market-report-291
 
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