Market Reports by GulfBrokers - 2023

[syamfx2020]

The bears are taking a walk on Wall Street. During the last few trading sessions, the US stock futures struggled to extend the upside momentum amid concerns over slower economic growth. Meantime, the Beige Book survey published on Wednesday showed the US economy stalled in recent weeks as hiring and inflation slowed and access to credit narrowed. The bearish sentiment was also fueled after the Electric car maker Tesla released disappointing first-quarter financial results.

Rising bets for a 25-bps rate hike by the Federal Reserve in May also underpinned the markets. However, the market will get more information about the central bank’s path ahead to digest when FOMC members Waller and Williams speak later today. On the earnings front, American Express and AT&T are amongst those reporting the last quarter's financial results today.

EQUITIES

European and UK stocks opened slightly lower on Thursday; the fall followed a pummelling session for US stocks on Wednesday. The overall sentiment is expected to be under pressure in the coming days as investors remain concerned about the enduring pressure from expectations of another US interest rate hike in May.

OIL

Crude oil futures trade sharply lower despite a sharp decline in U.S. crude inventories as the oil traders remain concerned that the central banks could cause a recession if it raises rates too high or too quickly. The EIA data showed the US crude oil inventories fell by 4.581 million barrels in the week ended April 14, 2023, more than market expectations of a 1.088-million-barrel decrease.

CURRENCIES

In the currency market, In the currency market, the euro notched up small gains against the dollar while overall momentum remains mixed, focus shifted to the European Central Bank meeting minutes which are set to release later today. Meanwhile, the Canadian dollar weakened on Thursday against its U.S. counterpart after the prices of crude oil, one of Canada’s major exports extended the decline.

GOLD

The precious metal rebounded to near $2000 but If the US dollar regains further upside strength this week, we could see an extension to the weakness in the precious metals. The short-term trend bias still seems to favour the downside. However, $2014 remains the key resistance to watch because, above this, bulls are likely to dominate.

Economic Outlook

On the data front, New Zealand inflation slowed more than economists expected in the first quarter. The official data showed that the annual inflation rate in New Zealand was down to 6.7% in Q1 of 2023 from 7.2% in Q4 but remained more than double the RBNZ's target.

Moving ahead today, the important events to watch:

US – Jobless claims: 12:30

US – Philly Fed manufacturing index: 12:30

Technical Outlook and Review

EURUSD: Technically the overall momentum remained mixed for the pair after the bulls failed to extend the rally. The short-term resistance is located in the area of yesterday’s high of 1.0980, a break above 1.0980 will confirm a possible move to 1.1010/20. On the downside, if the pair loses the 1.0900 handles, we expect a move toward 1.0870/60.



The important levels to watch for today: Support- 1.0930 and 1.0900 Resistance- 1.1000 and 1.1030.

GOLD: The precious metal recovered from the previous session lows. Now the resistance is $2002 then $2014 trade or holds above the resistance level then $2020 & $2032 easily looking but if not sustain then again come down to support levels $1985 & 1980.



The important levels to watch for today: Support- 1985 and 1980 Resistance- 2002 and 2014.

Quote of the day – If you want to know everything about the market, go to the beach. Push and pull your hands with the waves. Some are bigger waves, some are smaller. But if you try to push the wave out when it’s coming in, it’ll never happen. The market is always right. Ed Seykota.
Read more - https://gulfbrokers.com/en/daily-market-report-651

 

[syamfx2020]

Global markets made slim gains on Monday as investors remain concerned about the prospect of further monetary tightening. Recently, Cleveland Fed President Loretta Mester, typically among the more hawkish policymakers, said she favoured getting rates above 5% because inflation was still too high. The European Central Bank must “carry on and act consistently” with interest rate hikes as it continues its efforts to tackle high inflation, ECB policymaker Olli Rehn said last Friday.

This week, all eyes will be on the US PCE inflation data to gain further clarity into whether the inflation peaked, with many fearing a more severe recession on the horizon. On the other hand, the first quarter earnings season is expected to be strong with sectors such as tech, social media and airlines likely to report the latest financial results.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Microsoft, Alphabet, Meta, Boeing, American Airlines, Intel and First Republic Bank.

GOLD

The precious metal ended in negative territory last week as US Treasury yields and the dollar index bounced off. Fundamentally the gold price is expected to be extra volatile this week due to a busy economic calendar and all eyes remain on Friday’s PCE Inflation data. The inflation data might influence the Federal Reserve’s decision on whether to act more aggressively.



From a technical perspective, XAUUSD maintains a negative bias according to the daily chart. This week, If the short-term bearish momentum continues then the next key support area to watch is $1962 then $1950. On the upper side, If the precious metal regains upside momentum and presses back above $2000 then the key resistance area to watch is $2014 and $2020.

DOLLAR INDEX

The dollar index started the new week slightly lower while the currency pair carries the momentum initiated during the previous week as the USD traders anticipate at least one more Federal Reserve interest rate hike this year amid subsiding banking sector concerns and ongoing US inflation. The crucial US GDP figures and PCE inflation numbers this week will be the key economic data points which could determine the next move for the currency.



For this week, the first nearest support level is located at 101.40. In case it breaks below this level, it will head towards the next support level which is located near 101. However, a fresh demand for the pair can be anticipated once the USD rises above the 102 resistance. A break above this level will confirm a possible move to 102.60.

EURUSD

The currency pair ended flat last week as easing inflation expectations sparked hopes for less aggressive interest rate hikes. The latest Eurozone CPI report showed the annual inflation rate in the euro area decreased from 8.5% in February to 6.9% in March. Meantime, the Euro started the new week on a bullish note despite the release of weaker-than-expected German IFO business climate data. The main attraction for Euro this week is the German inflation and the Eurozone GDP report on Friday.



This week, good support is expected at the 1.0900 area, with this zone having been held last week. The 1.0900 mark is a major support level for this week, failure to defend the mentioned support level has the potential to drag the pair further towards the 1.0870/50 support zone. On the flip side, the first immediate resistance level for the pair is 1.1010, then the stronger resistance is 1.1035, which is important to be stable above it for a continuing rise to 1.1080 and then 1.1110 levels.

DOW JONES

Dow Jones ended last week on a downbeat note. The downticks in the index were bolstered by the release of weak Q1 earnings results from big US companies like Netflix and Tesla. This week the Dow traders should turn their attention to the big tech's earnings results and away from concerns around the U.S. Federal Reserve tightening.



From a technical perspective, The 33,700/650 area of confluence has recently been held as a firm support, failure to defend the mentioned support levels has the potential to drag the pair further towards the 33,300/200 support zone. On the upper side, in case the index manages to settle above 34,000, it will continue upside momentum and head towards the next resistance level at 34,200 and 34,500.

Check out the original article with charts here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-77

 

[syamfx2020]

San Francisco-based First Republic Bank (NYSE: FRC) shares slid more than 20% during after-market trading after the bank reported a significant drop in deposits in the first quarter of 2023 due to the recent regional-banking crisis, which has led to customers withdrawing their funds. The bank reported deposits of $104.5 billion at the end of the first quarter, down 35.5% from a year ago, and down 40.8% from the previous quarter. As for revenue, the regional bank has seen it drop 13.4% in the first quarter to $1.209 billion.

Furthermore, the bank has announced that it will lay off around 25% of its workforce. The company also aims to increase its insured deposits and cut borrowings from the Federal Reserve Bank.

“Though we faced challenges and uncertainties with the stabilization of our deposit base and the strength of our credit quality and capital position, we continue to take steps to strengthen our business,” First Republic Bank CEO, Mike Roffler said.

EQUITIES

US stock futures and European stocks are lower on renewed worries about the banking sector after the UBS and First Republic Bank posted weak earnings results. UBS ended the first quarter of 2023 with a 52 percent annual drop in its profit and revenue for the quarter dropped to $8.75 billion from $9.38 billion a year ago.

On the earnings front, Microsoft, Alphabet and McDonald’s are amongst those reporting the last quarter's financial results today.

OIL

Crude oil futures reversed from the early gains. While as we are heading to the final days of this month global cues such as the FED's hawkish stance, US PCE inflation data and EIA and API crude inventory reports are expected to drive investors' sentiments in the remaining days of this week.

CURRENCIES

In the currency market, the dollar index (DXY), which tracks the currency against key rivals slightly rebounded from the previous session lows ahead of the release of US Consumer confidence data while commodity-linked currencies such as the Australian and Canadian dollars hit a fresh weekly low against the US dollar.

GOLD

The precious metal recovered back to above $1990 after the metal found strong buyers once again near the $1970 area. However, the upside momentum remains limited as the investors still expect the Fed will hike rates by another 25 basis points when it meets next week. Moving ahead to the North American session, gold traders and investors should closely monitor the release of US consumer confidence and new home sales numbers.

Economic Outlook

On the data front, In April, Germany’s most prominent leading indicator, the Ifo index, increased for the seventh month in a row. The German Ifo Business Climate Index came in at 93.6, slightly better than estimates and higher than the previous month's reading.

Moving ahead today, the important events to watch:

US – Consumer Confidence: 14:00

US – New home sales: 14:00

Technical Outlook and Review

EURUSD: EURUSD jumps back to near the monthly highs of 1.1070 but it will be hard to rule out a retracement. On the downside, 1.10 will act as an initial cushion, and a break below 1.10 will open doors to 1.0970 and then 1.0940. On the flip side, in case the euro manages to settle above again 1.1080, we can expect a strong bullish move till 1.1130.

The important levels to watch for today: Support- 1.1000 and 1.0970 Resistance- 1.1050 and 1.1080.

GOLD: The precious metal is back above $1985 but upward momentum is not strong. The price actions appear to be part of a consolidation phase and the metal is trading sideways. The metal needs to stay above $2000; otherwise. $1980 and 1975 may be visible soon.

The important levels to watch for today: Support- 1980 and 1975 Resistance- 1995 and 2000.

Quote of the day – “A lot of people get so enmeshed in the markets that they lose their perspective. Working longer does not necessarily equate to working smarter. In fact, sometimes it is the other way around.” - Martin Schwartz.
Read more - https://gulfbrokers.com/en/daily-market-report-652

 

[syamfx2020]

Shares of the Facebook parent Meta Platforms (NASDAQ: META) gained more than 2% in Tuesday's after-hours session after the two American tech giants Microsoft and Alphabet posted better-than-expected earnings results. Facebook is the largest social network in the world, with nearly 3 billion monthly active users.

The social media firm is scheduled to first quarter 2023 financial results today after US markets close. $META is expected to post quarterly earnings of $1.96 per share and revenues are expected to be $27.9 billion.

$META Key technical levels to watch:

Support: $206 and $198

Resistance: $216.60 and $222

EQUITIES

US stock futures remain under pressure despite the tech giants Microsoft and Alphabet releasing impressive last quarter financial results. Microsoft reported earnings of $2.45 per share, beating the $2.23 estimate. Revenues soared to $52.86 billion, outperforming the expected $51.02 billion. Alphabet Inc., Google's parent company, also beat Q1 earnings expectations with $1.17 per share, surpassing the estimated $1.07 per share. The company reported $69.79 billion in revenue, exceeding the $68.9 billion prediction.

On the earnings front, Boeing, Meta and Roku are amongst those reporting the last quarter's financial results today.

OIL

Crude oil futures slightly recovered from the early losses supported by better-than-expected API inventory data. The API data showed Crude oil inventories in the US fell this week by 6.083 million barrels, the American Petroleum Institute (API) data showed on Tuesday, with analysts expecting a 1.667-million-barrel draw. Moving ahead to the North American session, the oil traders should closely monitor the release of the EIA inventory report.

CURRENCIES

In the currency market, the US dollar ended higher on Tuesday while the index struggled to break above the key resistance of 102 the future direction of the USD will depend on today’s US durable goods orders data. Meanwhile, EURUSD rebounded back to above 1.1000 boosted by the hawkish comments from ECB policymakers.

GOLD

The safe haven metal trades flat on Wednesday but the metal recovered the previous session's losses supported by a pullback in the dollar. However, overall momentum remained bearish throughout this month as the central bank's aggressive rate hike policy has dented the bullion’s safe-haven appeal.

Economic Outlook

On the data front, the Australian Bureau of Statistics released the latest inflation data. The annual inflation rate in Australia dropped to 7.0% in Q1 of 2023 from an over-30-year high of 7.8% in Q4, compared with market forecasts of 6.9%.

Moving ahead today, the important events to watch:

US – Durable goods orders: 12:30

US – Crude inventories: 14:30

Technical Outlook and Review

EURUSD: The currency pair needs to stay above 1.1010; otherwise. 1.0960/40 may be visible soon. On the upper side, 1.1035 is the key resistance zones to watch, if the pair breaks and close above this area again then the next resistance area to watch is around 1.1080/90.



The important levels to watch for today: Support- 1.0960 and 1.0940 Resistance- 1.1035 and 1.1080.

GOLD: For today, $2014 remains the key resistance to watch. On the downside, rejection and pullback from the $2014 resistance allow for a dip towards $1995, with $1985/80 forming additional downside targets.



The important levels to watch for today: Support- 1985 and 1980 Resistance- 2005 and 2014.

Quote of the day – “After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!” – Jesse Livermore.
Read more - https://gulfbrokers.com/en/daily-market-report-653

 

[syamfx2020]

The e-commerce leader Amazon (NASDAQ: AMZN) stock hits a fresh 3-month high of $109.25 on Monday. Amazon shares have increased almost 15% in the last 6 weeks. Amazon is the largest e-commerce company in the United States and the largest cloud computing service provider globally.

Amazon is set to report financial results for the first quarter today after the market close. The company is expected to post quarterly earnings of $0.22 per share and revenues are expected to be $124.57 billion. The stock popped another 2% on Thursday after the company began its second round of laying off some employees in its cloud computing and human resources divisions.

$AMZN key technical levels to watch today:

Support: $102.30 and $97.60

Resistance: $114 and $118.40

EQUITIES

US stock futures struggling to recover from the early losses. Moving ahead, today investors are now turning their eye to the release of US Gross Domestic Product (GDP) for the first quarter data today. US GDP is forecast to grow at an annual rate of 2.0% in the first quarter of 2023. The GDP figures are one of the Fed's thermometers for gauging the health of the US economy.

On the earnings front, American Airlines, Amazon and Intel are amongst those reporting the last quarter's financial results today.

OIL

Crude Oil prices seem to be struggling to revive upside momentum despite a weaker USD and large crude inventory build as investors remain concerned about the global demand outlook. The latest EIA crude inventory data showed the US crude inventories dropped 5.054 million barrels last week, far exceeding expectations of a 1.486-million-barrel decline.

CURRENCIES

In the currency market, EURUSD reversed from the fresh monthly highs. Technically, the short-term trend remains supportive If the US dollar started to regain upside strength, we could see an extension to the weakness in the euro. While the US dollar remains under pressure as investors largely stayed cautious and refrained from making significant moves ahead of the next week's FED meeting.

GOLD

The precious metal climbed back to $2000 Thursday morning supported by dollar weakness. Overall, the momentum remained bullish throughout the Asian session. As of the writing, the metal hovers below $2000 and the further direction will depend on US GDP and unemployment figures which will release later today.

Economic Outlook

On the data front, the US Commerce Department has reported that orders for durable goods in the country, including large machinery, cars, and aircraft rose by 3.2% in March. This marks a significant improvement from the previous month’s 1.2% plunge in February.

Moving ahead today, the important events to watch:

US – GDP: 12:30

US – Jobless claims: 14:30

Technical Outlook and Review

EURUSD: In the medium-term perceptive, the immediate bias will remain bullish as long as prices exceed 1.10. On the flip side, any break below 1.10 then the next support near 1.0970 followed by the 1.0940 level.



The important levels to watch for today: Support- 1.1030 and 1.1000 Resistance- 1.1070 and 1.1100.

GOLD: Gold price back above $2000. The near-term resistance is around $2014, and any break over targets $2020/22. On the flip side, the key support prevails at $1992/90, a further breakout of $1990 can lead the pair towards $1982/80 levels.



The important levels to watch for today: Support- 1990 and 1980 Resistance- 2010 and 2014.

Quote of the day – Profits can be made safely only when the opportunity is available and not just because they happen to be desired or needed- Gerald M Loeb.
Read more - https://gulfbrokers.com/en/daily-market-report-654

 

[Chadistrading]

Thanks for the Gold one. It seems nice!
Best luck!

 

[syamfx2020]

Global market sentiment turned risk-averse this week amid renewed worries about the banking sector, and there is a lot of confusion right now in terms of where the global economy is headed and what the Federal Reserve is going to do next week. As recession fears resurfaced in the US, the outcome of next week’s FED meeting could set the tone for the rest of the weeks.

The Federal Reserve’s FOMC will conclude its 2-day meeting with the release of its monetary policy statement on Wednesday, May 03, followed by a press conference with Chairman Jerome Powell. Along with the policy statement, an updated “Dot Plot” and summary of Economic Projections will also be released. US FED chair Powell's speech should be more closely scrutinized for language and tone as he signals the FED's direction for the coming months.



Inflation in the United States is finally on its way down. US headline CPI rose 5% y/y in March, marking the smallest increase since May 2021 and down from 6% in February. The most recent employment numbers also indicated that the economy is slowing. Although employment is slowing down and inflation is cooling down again, the markets continue to expect that the Fed will raise a 25-basis point rate rise at its next meeting and money markets are already pricing in an 85% chance of a 25-bps hike from the Fed.

“One more move should be enough for us to then take a step back and see how our policy is flowing through the economy, to understand the extent to which inflation is returning back to our target,” Atlanta Federal Reserve President Raphael Bostic said Tuesday.

First Republic Bank shares hit a record low, the banking crisis is not over​

First Republic Bank shares tumbled almost 60% this week after the bank reported a significant deposit drop in the first quarter of 2023. First Republic Bank Lost $102 Billion in Customer Deposits due to the recent regional-banking crisis, which has led to customers withdrawing their funds. After the renewed concerns over the US banking sector, investors have become increasingly confident that a more conservative policy will be adopted by the Federal Reserve.



We anticipate the US central bank will likely pause interest rate hikes after May and expect rate cuts to begin in the second half of the year following the release of disappointing financial results from the First Republic Bank and UBS, but it depends crucially on the "totality" of upcoming data. Therefore, investors should closely monitor the upcoming PCE inflation and employment data to make investment decisions for their portfolios.

We don't exclude the continuation of high volatility in the coming days due to the renewed concerns about slowing global economic growth and the long-awaited May Fed meeting is now just days away, it's advisable to implement a stop loss on every trade to prevent a huge loss.

Trading is risky and your entire investment may be at risk. Please ensure that you fully understand the risks involved.

Check out the original blog here - https://gulfbrokers.com/en/may-fomc-meeting-one-more-hike-then-pause-the-rate-cycle

 

[syamfx2020]

The week has started off fairly quietly in terms of price action because the markets the UK, China & various other markets all closed for the May Day holiday. However, the volatility is expected to pick up later this week due to high-impact economic events like the US employment report, Eurozone inflation and central banks meeting, which will exhibit sharp movements in the global markets.

The world’s major central banks, the US Federal Reserve, European Central Bank, and Reserve Bank of Australia all meeting this week and news arising from it will dominate the week’s investor sentiment, with their discussion on policy likely to influence market volatility. The key focus for the financial markets this week will be the speech by Fed Chair Powell and Fed rate projections because there is also a possibility of a much-anticipated pause in rate hikes.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Apple, Starbucks, AMD, Uber, Lyft, Coinbase, Moderna, Ford and Pfizer.

GOLD

Gold price ended slightly lower but the overall momentum remained bullish throughout last month supported by the weaker dollar. Apart from the weakening Dollar, the shaking faith in the global banking system has also increased the demand for precious metals. The upcoming FOMC meeting will be crucial for precious metals, as another rate hike can increase the selling pressure. However, gold price forecasts indicate that the impact of the Fed Chair’s statement may prove to be an overwhelming factor in deciding where the price goes.



From a technical perspective, The $1968/65 area of confluence has recently been held as a firm support, failure to defend the mentioned support levels has the potential to drag the metal further towards the $1956 and $1948 support zone. On the upper side, in case the metal manages to settle above $2000, it will regain upside momentum and head towards the next resistance level at $2014 and $2032

DOLLAR INDEX

The dollar index closed last week slightly higher but it is far too early however to suggest the USD dominant downtrend is over. This week, USD investors largely focused on Federal Reserve Chair Jerome Powell's speech for insights into the central bank's rate hike path. It will also be an idea to keep a lookout for the US monthly jobs report. The BLS will release the employment report for April on Friday, with an increase of 185,000 jobs predicted and an increase in the unemployment rate from 3.5% to 3.6%.



For this week, the immediate support prevails at 101.30 then 101, further breakout of 101 can lead the index towards 100.80/60 levels. On the flip side, a recovery of the bullish move requires a break of 102.30. This opens the door toward 103, where the previous high of 3 April is located. A further price advance makes 103.40 available.

EURUSD

Euro continues to trade steady as markets wait to hear from the European Central Bank on its latest interest rate decision. The currency pair has a big week ahead with a monetary policy announcement and a Eurozone inflation report on the calendar. On Thursday, the European Central Bank will announce its interest rate decision, with an increase of at least 25 basis points. The market is pricing in a 78% chance the ECB will increase rates by 25 basis points at their May meeting.



Turning to the daily chart, we see that the currency pair has been in a spectacular comeback in the past few days. This week, key resistance is located for the pair around 1.1100, a break above this level will confirm a possible move to 1.1170/80. On the flip side, the bears need to see a confirmed break below the crucial support 1.0900, a move below the 1.0900 will invalidate the short-term bullish outlook.

DOW JONES

Dow Jones and other major US indices settled higher on Friday, turning positive after an early decline, boosted by better-than-expected earnings results. This week is expected to be a busy one for Dow traders, with the main focus on the FOMC meeting outcome on Wednesday as well as the earnings results from big tech giant Apple on Thursday.



The technical scenario is absolutely bullish. While considering the recent bullish momentum the Dow may find a strong resistance near 34,800. On the downside, the immediate support is near 33,650 and the key support will be the same as last week's low at 33,250, below which the slide could further get extended towards 33,000 and 32,900.

Read more here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-78

 

[syamfx2020]

The UK banking giant HSBC announced robust first quarter of 2023 financial results. HSBC shares gained more than 5% after the earnings announcement. The largest bank in Europe said pre-tax profit jumped by $8.7 billion to $12.9 billion during the last quarter, representing an increase of 212% compared to the same period of the previous year. Net profit in the first quarter also increased from $2.76 billion to $10.33 billion.

"The excellent first quarter results demonstrate once again that our strategy is working” - HSBC CEO, Noel Quinn said.

The lender said its board has approved a first interim dividend of $0.10 per share. The bank also announced the first of a new cycle of buybacks of up to $2 billion. "We've announced share buybacks. With this momentum, we expect to have significant future distribution capacity for dividends and share repurchases." - CEO Noel Quinn said.

EQUITIES

UK shares opened higher supported by strong earnings results. While European shares trade flat after the release of disappointing German retail sales data. On the other hand, US stock futures reversed from the previous session highs ahead of the Federal Reserve’s interest rate decision on Wednesday.

On the earnings front, Starbucks, Uber, Ford, AMD, and Pfizer are amongst those reporting the last quarter's financial results today.

OIL

Oil bears gained firmer control as crude prices struggled to regain upside momentum. The sentiment in the oil market has been fairly volatile as prices have been stuck in a range for the last couple of weeks. The overall momentum is expected to be under pressure in the coming days due to the expectations for more interest rate hikes by major central banks.

CURRENCIES

In the currency market, the Australian dollar regained strong upside momentum and recovered back to above 0.6700 after the Reserve Bank of Australia's surprise 25bps rate hike. Markets widely expected the apex bank to leave the rate unchanged today. “The board’s priority remains to return inflation to target. High inflation makes life difficult for people and damages the functioning of the economy,” – RBA governor Philip Lowe said.

GOLD

The precious metal remains under pressure. During the previous session, the metal bounced back to above the key psychological level of $2000, but the bullish momentum faded following the release of better-than-expected ISM manufacturing PMI figures. The ISM manufacturing PMI improved to 47.10 in April from 46.30 in the previous month and surpassed forecasts of 46.80.

Economic Outlook

On the data front, Eurozone, Germany and UK reported better-than-expected PMI numbers during the European session. Eurozone and German Manufacturing PMI was revised slightly higher to 45.8 and 44.5. UK Manufacturing PMI was revised higher to 47.8 in April.

Moving ahead today, the important events to watch:

US – Factory orders: 14:00

US – JOLTS job openings: 14:00

Technical Outlook and Review

EURUSD: The currency pair remains under pressure a clear breakdown of the support at 1.0950 could open space for further declines while only recovery to 1.1040 would reverse the short-term negative trend.



The important levels to watch for today: Support- 1.0950 and 1.0930 Resistance- 1.1000 and 1.1035.

GOLD: The precious metal can regain upside momentum again if it rebounds back to above the $2015 level, any break and closes above this level the next levels to watch are $2030/35. Nevertheless, if it continues to fall, the slump will quickly extend toward the $$1965 and $1955 marks.



The important levels to watch for today: Support- 1976 and 1968 Resistance- 1990 and 2004.

Quote of the day – “A market downturn doesn’t bother us. It is an opportunity to increase our ownership of great companies with great management at good prices.” — Warren Buffett.
Read more - https://gulfbrokers.com/en/daily-market-report-655

 

[syamfx2020]

As we all know, the Japanese Yen, a traditional safe haven currency sees high volatility as it is highly sensitive to changes in market sentiment. The JPY volatility has been steadily rising since the Bank of Japan’s monetary policy statement last Friday, and all JPY cross-pairs reacted wildly after the BOJ meeting. GBPJPY has seen the highest intraday volatility amongst the JPY crosses.

BOJ policymakers voted to keep their massive monetary easing unchanged at the meeting, the first since Ueda took the helm at the central bank on April 9. The yen dropped sharply against other major currencies following the BOJ decision and Ueda's press conference. The central bank’s dovish stance spurred a selloff in the yen. "The central bank will continue its monetary easing policy until wage growth takes hold in the country" - BOJ Governor Kazuo Ueda said.

USDJPY hits a fresh 8-week high of 137.75 on Tuesday during the Asian session. While the currency pair slightly reversed from the highs. As of this writing, USDJPY retreats back to below 137.40. The major factor driving the USDJPY price action in the coming days will be the US Federal Reserve interest rate projections and growing recession fears. On the other hand, the EURJPY and GBPJPY also reversed from multi-year highs. During the early European session, EURJPY reached a fresh high of 151.60 since September 2008.

USDJPY may form a triple top-form pattern​

USDJPY continues its relentless march higher and is back at levels last seen in 2 months. Considering many significant events lined up in this week the volatility may increase further. However, the pair reached a crucial deciding point ahead of the FED meeting outcome. The currency pair is currently in a consolidation phase after hitting a fresh intra-day high of $137.75.



For this week, 138 remains the key resistance level to watch. USDJPY bulls need to surpass the 138 and 138.30 resistance areas to sustain their bullish momentum. Once it settles above this area, we might expect to see a smooth landing to the next resistance at 139.40 then 140. While another rejection from this area will mean a formation of the triple top pattern on the daily chart and the price action in this zone is very important, we can expect a sharp reversal from here.

Looking at the downside, the immediate support is identified as 136.80 and then 136.30 zones, below which the slide could further get extended towards 135.50. Another point to keep in mind is that any aggressive shorts are to be initiated only below the 135 level. And EURJPY also retreats more than 100 pips from daily highs. Therefore, expecting a deeper pullback retest some support levels below 148.50 and then 147 area.

Check the original article here with charts - https://gulfbrokers.com/en/usdjpy-hits-fresh-8-week-high-the-pair-getting-close-to-a-deciding-point