Market Reports by GulfBrokers - 2023

[syamfx2020]

It’s going to be a volatile journey today, especially the New York session, traders across the globe wait for the result of the Federal Reserve May 2023 meeting. The US central bank is expected to raise the fed funds rate by 25 basis points to a range of 5%-5.25%. The key focus will be on the latest summary of US economic projections from the policymakers and Fed chair Jerome Powell's speech 30 minutes after the release of the data. The FOMC Statement and projections are set to be released at 18.00 GMT.

EQUITIES

US stock futures pared early losses after skidding sharply earlier in the session on fears that the US economy could be headed for a recession. As things stand, the optimism from yesterday has been toned down today with Asian shares and bond yields traded a little lower.

On the earnings front, Qualcomm, CVS Health and Etsy are amongst those reporting the last quarter's financial results today.

OIL

Crude oil futures extend the sell-off. The overall momentum remained bearish throughout this week as stress in the banking industry raises concerns about an economic slowdown that would curb energy demand. The strong bearish sentiment was also driven by concerns about further interest rate increases. Meantime, the API crude inventory data showed the US crude inventories declined by 3.939 million barrels in the week that ended April 28th, 2023, following a 6.083-million-barrel drop in the previous week.

CURRENCIES

In the currency market, EURUSD sideways trading continues as investors didn’t find any solid reason to terminate the trends ahead of the Fed meeting outcome. Meanwhile, King Dollar struggling to regain strong upside momentum as traders across the globe wait for the result of the Fed meeting outcome to get a clear picture of the greenback's long-term direction.

GOLD

The precious metal will have a busy day today. The metal is holding its impressive gains ahead of the FOMC outcome. However, the metal struggles to find long-term direction as it continues to move up and down in a narrow channel. As of this writing, gold price trades near $2015. The metal is expected to be highly volatile across both sides during and after the event. Make sure to keep your positions secure going into the event.

Economic Outlook

On the data front, Eurozone inflation increased back to 7% from March's 13-month low of 6.9 per cent. While Core inflation in the eurozone fell for the first time in 10 months in April. Eurozone Core inflation declined slightly to 5.6% in April 2023, down from the previous month's record high of 5.7%.

Moving ahead today, the important events to watch:

US – ADP employment report: GMT – 12:15

US – ISM services PMI: GMT – 14:00

US – FOMC interest rate decision and statement: GMT – 18:00

Technical Outlook and Review

EURUSD: The currency pair trades steady above 1.1030. If the bullish momentum continues, then the next upside level is to watch 1.1050 and 1.1100. On the downside, any meaningful pullback now seems to find some support near the 1.1000 zones, below which the slide could further get extended towards the 1.0950 and 1.0900 regions.



The important levels to watch for today: Support- 1.1000 and 1.0950 Resistance- 1.1050 and 1.1100.

GOLD: For today, considering heavy volatility there are chances the metal can rally back to above the key resistance of $2035. On the downside, the decline is more extensive, and it will be hard to rule out a run towards $1980 if the metal breaks below again $2000.



The important levels to watch for today: Support- 2000 and 1993 Resistance- 2021 and 2035.

Quote of the day – “I don’t want to spend my time trying to earn a lot of little profits. I want very, very big profits that I’m ready to wait for.” Philip Fisher.
Read more - https://gulfbrokers.com/en/daily-market-report-656

 

[syamfx2020]

Following yesterday’s Fed release, the European Central Bank (ECB) comes out with its Interest Rate decision today at 12:15 GMT. The ECB is expected to announce a 0.25% increase in its benchmark interest rate. While market participants and investors would be keenly looking at whether the Central Bank shows any signs of cooling down the monetary policy after the latest Eurozone CPI data showed the core inflation in the eurozone fell for the first time in 10 months in April.

On the other hand, investors should also closely monitor the comments from ECB President Christine Lagarde about inflation and interest rate expectations. If Lagarde announces any indication of slowing down the rate hikes in upcoming meetings, then EURO bulls be careful, a reversal looks imminent. EURUSD reached a fresh 13-month on Wednesday after the FED meeting.

EQUITIES

US stock futures slightly recovered from the early sell-off. Wall Street ended lower on Wednesday as banking shares face renewed pressure due to the ongoing US regional banking crisis. On Wednesday, Bloomberg reported that PacWest Bancorp is exploring strategic options, including a possible sale. Meantime, Fed Chair Jerome Powell said the banking sector is sound and resilient at a conference on Wednesday.

On the earnings front, Apple, Shopify, Moderna and Coinbase are amongst those reporting the last quarter's financial results today.

OIL

Crude oil prices recovered slightly from their recent plunge. Oil prices extend the sell-off on Wednesday amid rising risks of a global recession and fears of a wider contagion in the US regional banking space. On the positive side, the EIA crude inventory data showed the US crude oil inventories fell by 1.28 million barrels in the week ending April 28, 2023, above market expectations of a 1.1 million drop.

CURRENCIES

In the currency market, the dollar index, which measures the currency against six major peers trying to regain strength because of the risk-off market sentiment. The DXY rebounded back to above 130 after the index found short-term buyers near 101 areas. The focus will also turn to the NFP report on Friday, which should prompt even more volatility.

GOLD

The precious metal slightly reversed from the highs. However, the overall momentum remains bullish as concerns about the US banking crisis and the US debt default crisis still provide safe-haven support for gold prices. Today, gold traders should closely monitor the release of US jobless claims data and the ECB's future interest rate projections.

Economic Outlook

On the data front, the Federal Reserve raised interest rates by 25 basis points and hinted it might be the final move in the most aggressive tightening campaign since the 1980s. The central bank said it seeks to achieve maximum employment and inflation at the rate of 2 per cent over the long run but removed language from its policy statement that it “anticipates” further rate increases would be needed.

Moving ahead today, the important events to watch:

Eurozone – ECB interest rate decision and statement: GMT – 12:15

US – Jobless claims: GMT – 12:30

US – ECB press conference: GMT – 12:45

Technical Outlook and Review

EURUSD: For today, the key resistance for the pair is located above 1.1100, a break above this level will confirm a possible move to 1.1150/70. On the downside, any meaningful pullback now seems to find some support near the 1.1000/1.0990 zones, below which the slide could extend further towards the 1.0950/30 levels.



The important levels to watch for today: Support- 1.0990 and 1.0930 Resistance- 1.1100 and 1.1150.

GOLD: For today, considering heavy volatility there are chances the metal can rally back to above the key resistance of $2035. On the downside, the decline is more extensive, and it will be hard to rule out a run towards $1980 if the metal breaks below again $2000.



The important levels to watch for today: Support- 2000 and 1993 Resistance- 2021 and 2035.

Quote of the day –Whatever method you use to enter trades, the most critical thing is that if there is a major trend, your approach should assure that you get in that trend - Richard Dennis.
Read more - https://gulfbrokers.com/en/daily-market-report-657

 

[syamfx2020]

Uber stock exploded more than 14% this week after the US ride-sharing giant beat Wall Street's consensus estimates for both first-quarter earnings and revenue, as well as on the company's higher gross bookings. The company posted revenue of $8.8 billion for the quarter ending in March, a 29% increase from the same period last year.

• Loss per share (EPS)- $0.08 vs. -$0.10 expected
• Revenue $8.82 Billion vs. $8.72 Billion expected

During the first quarter, the company’s gross bookings grew 19% year-over-year to $31.4 billion. Uber's mobility segment reported gross bookings of $14.98 billion in the first quarter, up 40% from last year. For the second quarter, Uber said it expects to report gross bookings of $33 billion to $34 billion.

"Looking ahead, we are focused on extending our product, scale and platform advantages to sustain market-leading top and bottom-line growth beyond 2023," Uber CEO, Khosrowshahi said.

Uber’s top competitor in the ride-sharing market Lyft (NASDAQ: LYFT) is set to announce its last quarter financial results on Thursday after the markets close. Wall Street’s revenue consensus for $LYFT is $982.03 Million and the loss per share of $0.08 per share for the quarter. Uber is much larger than Lyft, the two companies have similar profiles when it comes to growth and margins.

Shares of Lyft ended 3% higher on Wednesday. Technically, the overall momentum remains mixed and the stock still struggling to recover from its biggest-ever decline. The stock plunged more than 35% on February 10 after the company posted weak forward guidance. However, the stock might regain upside momentum and recover back to near the resistance area of $16 if the company manages to beat sales estimates again and unveils a growth plan during the Q1 earnings call.

Read more here - https://gulfbrokers.com/en/uber-posts-29-revenue-growth-focus-shifts-to-lyft-earnings

 

[syamfx2020]

The volatility remained high this week, based on a list of important data and events while the dollar index finished the overnight session almost unchanged with volatility squashed ahead of the US NFP data. NFP report measures the previous month's employment condition, which is a key indicator to measure the strength of the US economy.

The April NFP data is expected to show that the economy added more than 179k jobs in April while the unemployment rate is seen edging higher to 3.6% from 3.5%. A softer-than-expected jobs report could prompt the Federal Reserve to consider pausing its rate-hiking cycle as it could exacerbate inflationary pressure.

EQUITIES

European shares trade steady despite the release of weak Eurozone retail sales data supported by better-than-expected earnings results. While US futures remained under pressure for the 4th consecutive day as the Banking Crisis stoked fears of weakness in the global economy. Investors are also concerned that the central banks could cause a recession if they raise rates further.

Shares of the tech pioneer Apple (NASDAQ: APPL) surged almost 3% in extended trading on Thursday after the company's Q2 earnings beat Wall Street expectations.

OIL

Crude oil futures trading sideways ahead of the busy North American session. Oil prices recovered from the previous session's sharp fall. The strong bearish sentiment fueled fears the US economic slowdown could dampen economic growth and fuel demand.

CURRENCIES

In the currency market, the British pound remains one of the strongest currency pairs in the last couple of weeks. The currency pair hits a fresh 2023 high of 1.2632 during the European session against the US dollar. Meantime, Euro extends the slide against the Pound following the disappointing Eurozone retail sales.

GOLD

The safe-haven metal has been relatively volatile in the past few days. The metal has been benefitting from a safe haven play as uncertainty around global markets continues. The data to come later today on US payroll numbers could prove key to determining the next moves.

Economic Outlook

On the data front, the European Central Bank (ECB) increased its interest rates by 25 basis points to 3.75% on Thursday, in line with market expectations. The inflation outlook 'continues to be too high for too long'. Because of these 'ongoing high inflation pressures' they decided to raise the three key ECB interest rates by 25 basis points - ECB.

Moving ahead today, the important events to watch:

US – Non-Farm payrolls: GMT – 12:30

Canada – Employment report: GMT – 12:30

Technical Outlook and Review

EURUSD: For today, good support is expected at the 1.0980 area, with this zone having held last week while further down, demand is also expected around 1.0950, which will act as the next area of support. On the flip side, the first immediate resistance level for the pair is 1.1060, then the stronger resistance is 1.1100.



The important levels to watch for today: Support- 1.0980 and 1.0950 Resistance- 1.1070 and 1.1100.

GOLD: The technical scenario is absolutely bullish after the strong upside move. While considering the recently bullish momentum the metal may find strong resistance again above $2070. On the downside, any meaningful pullback now seems to find some support near the $2030 zones, below which the slide could extend further towards the $2020/18 regions.



The important levels to watch for today: Support- 2030 and 2018 Resistance- 2045 and 2060.

Quote of the day – “The core problem, however, is the need to fit markets into a style of trading rather than finding ways to trade that fit with market behaviour.” – Brett Steenbarger.
Read more - https://gulfbrokers.com/en/daily-market-report-658

 

[syamfx2020]

Global markets ended mixed last week after the 3 major central banks RBA, FED, and the ECB raised interest rates by 25 basis points across their lending rates, respectively. The central banks hinted at a possible holding of interest rates in the period ahead.

The main attractions for this week are Wednesday’s US CPI print, which could trigger volatility in the market. The main event on the calendar for monetary policy this week is the meeting of the Bank of England on Thursday. On the other hand, investors will be looking ahead to appearances by a number of Federal Reserve policymakers this week after the Fed has increased interest rates by 25bps as anticipated by market experts.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Palantir, Airbnb, PayPal, Under Armour, Walt Disney and Roblox.

GOLD

Precious metals experienced a sharp fall on Friday following the release of better-than-expected US jobs report. The Fridays US jobs report showed that US employers added 253,000 jobs, compared to the market expectation of 180,000. However, gold prices closed above the key psycological level of $2000. Some of the key data points expected to dictate this week's gold price movements include the US inflation report, which is due out on Wednesday and the BOE interest rate decision and US PPI data on Thursday.



Technically, the momentum remains mixed after the previous session's strong bearish move. On the upper side, $2032/35 will act as an immediate while $2050 will be a critical resistance zone. While considering the bullish sentiment if the metal doesn’t break back above $2050 then a major retracement can be expected.

DOLLAR INDEX

The US dollar index ended slightly lower on Friday. On Friday, the Index jumped from the session low of 101.15 to almost the session high of 101.70 after a better-than-expected U.S. NFP job report. But soon after the NFP jump, the greenback retreated back to below 101.20. Moving ahead, It will be a relatively quiet but significant week for the Dollar, starting on Wednesday with a release of US inflation data and Friday will bring the release of Michigan consumer sentiment numbers.



Based on the price action, and taking into account conceivable volatility this week during the release of the US inflation report, the greenback may also retest the 100.80 and 100.50 below that. However, considering the recent sell-off near-term pullbacks from 100.50 support remain corrective in nature.

EURUSD

The currency pair continues to swing between losses and gains across the last week. The pair ended above 1.1000 last week. While momentum on the upside has slowed down, the market breadth remains intact and there is no indication of profit booking or reversal emerging from the highs. For the euro there is no major economic data scheduled this week, so this week again the trend of the euro would largely depend on the trend of the dollar index.



Technically, the immediate outlook seems slightly neutral as the latest decline back to 1.0970 was met with fresh buying. This week the resistance for Euro is around 1.1100, any break over targets is 1.1150/80. On the downside, any meaningful pullback now seems to find some support near the 1.1000 and 1.0980 zones, below which the slide could extend further towards the 1.0940/30 regions.

DOW JONES

Dow Futures started this week's trading session on a positive note. Dow Jones and other US indices ended higher on Friday boosted by stronger-than-expected US employment reports and corporate profits. This week, Dow traders should closely monitor the release of the latest US CPI and FED policymaker's comments, looking for clues on future rate hikes by the central bank.



Technically, the medium-term trend is very supportive, and the index has room to climb If the upside momentum continues. On the upper side, considering heavy volatility there are chances that the Dow can easily rise towards the next key resistance of 33,900 then the 34,200 area. On the downside, any meaningful pullback now seems to find some support near the 33,450 and then 33,200 zones, below which the slide could further get extended towards the 32,900/800 zones.

Read more here with charts - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-79

 

[syamfx2020]

Shares of Digital lodging platform Airbnb (NASDAQ: ABNB) gained about 35% this year. On Monday, the stock extends its recent rebound and closed almost 5% higher ahead of the earnings results. Airbnb is scheduled to report its Q1 financial results on Tuesday, May 09, after the market closes. The company is expected to post quarterly earnings of $0.14 per share and revenues are expected to be $1.78 billion.

On February 14, 2023, Airbnb reported fourth-quarter earnings that beat analysts’ expectations on top and bottom lines. The stock registered its biggest one-day increase of 13% following the upbeat results and the stock hit a fresh 52-week high of $144.63 during that week. Since then, the stock has been slowly declining. While again $ABNB regained upside momentum in the last 4 weeks and recovered back to above $125 after it formed double bottom below the $108 area.

Moving ahead, the stock can push further up if the recent upside momentum continues, and the first target should be $130, any break above $130 would increase the potential of an extension towards the next key level of $144 if these key numbers of top expectations in the earnings report.

EQUITIES

Wall Street ended mixed on Monday as investors are keeping a close watch on Federal Reserve actions as they try to assess the impact of interest rate hikes on global growth. The Federal Reserve raised its benchmark overnight interest rate by 25 basis points to the 5.00%-5.25% range and signalled it may cause further increases. While several market participants started to anticipate that the FED will continue to take action until Inflation is brought down after the release of a stronger-than-expected US employment report.

OIL

Crude oil futures slightly reversed from the early session highs as investors wait for the release of the US Energy Information Administration's short-term outlook report, which is set to be released later today. During the previous session, oil prices showed positive volatility and closed with significant gains on hopes for less aggressive rate hikes from the US central bank.

CURRENCIES

In the currency market, the Canadian dollar is holding its recent gains against the US dollar. the recent loonie’s strength is primarily due to a recovery in oil prices. Meantime, the Euro slides to a fresh session low against the US dollar. Moving ahead to the North American session, the Euro traders should closely monitor the comments from the ECB policymakers Isabel Schnabel and Philip R. Lane.

GOLD

The safe-haven metal trades flat as investors await further cues from the US Fed regarding its rate hike trajectory, as the latest US inflation data will release on Wednesday. Technically, the medium-term trend remains supportive but If the US dollar regains upside strength this week, we could see an extension to the weakness in the gold price.

Economic Outlook

On the data front, German industrial production declined by 3.4% in March, reversing a revised 2.1% increase in February and worse than market forecasts of a 1.3% fall.

Technical Outlook and Review

EURUSD: For today, the first key support level is located at 1.0960. In case it breaks below this level, it will head towards the next support level which is located near 1.0940/30. On the upper side, If the pair regains upside momentum and press back above 1.1000 then the key resistance area to watch is 1.1035.



The important levels to watch for today: Support- 1.0960 and 1.0930 Resistance- 1.1000 and 1.1035.

GOLD: For today, the key resistance is located around $2035, a break above this level will confirm a possible move to $2045/48. On the downside, any meaningful pullback now seems to find some support near the 2016/14 zones.



The important levels to watch for today: Support- 2016 and 2014 Resistance- 2030 and 2036.

Quote of the day – To make money in stocks you must have the vision to see them, the courage to buy them, and the patience to hold them – Warren Buffet.
Read more here - https://gulfbrokers.com/en/daily-market-report-659

 

[syamfx2020]

Shares of Canadian multinational e-commerce giant Shopify (NYSE: SHOP) surged more than 25% last week after the company earnings and revenue for the first quarter topped analyst estimates. Shopify smashed revenue expectations with $1.51 billion in revenue–up 25% from last year and profits per share also increased, markets and analysts were forecasting a loss this quarter.

• Earnings per share (EPS): $0.01 vs. $-0.04 expected
• Revenue: $1.51 billion vs. $1.43 billion expected

Shopify has become the e-commerce platform of choice for small and medium-sized business owners. Despite the company reporting better-than-expected financial results, the e-commerce firm announced a 20% layoff due to the sale of its logistics business to Flexport. However, Shopify CEO, Tobi Lütke said the Thursday staffing reduction he carried out was meant to refocus the company on its main mission and reduce distracting “side quests.”

$SHOP: Is it time to buy now or wait?​

$SHOP has reversed after the stock found strong buyers below $30. The stock price has witnessed a sustainable upside bounce in the last week and the momentum continues this week as well. On Monday, the stock gained another 4% and reached a fresh 52-week high of $65.13. While considering the recent bullish sentiment we can still expect a potential retracement to $55 and $50 area before we see our next push to $76/78.

Read more here - https://gulfbrokers.com/en/shopifys-recovery-gains-momentum-after-q1-results

 

[syamfx2020]

The global markets waiting for the critical US inflation report today for more confirmation on whether we are on a path of slowing inflation and insight into the possible path of monetary policy by the U.S. central bank. The forecast is the annual inflation rate in the US is expected to remain steady at 5% in April, but CPI month-on-month is expected to jump to 0.4% this month. If the CPI comes higher than expected, it will serve as confirmation that the Federal Reserve will need to enact stricter measures to curb inflation.

EQUITIES

Global stocks slipped as investors are waiting for fresh inflation data from US and China. Meantime, US stock futures remain flat due to the ongoing negotiations over the US debt ceiling, after a meeting between President Joe Biden and congressional leaders late on Tuesday yielded little progress.

On the earnings front, Walt Disney, Robinhood and Roblox are amongst those reporting the last quarter's financial results today.

OIL

Crude oil futures holding the weekly gains supported by decent US employment data and third-quarter earnings results that were better than investors feared. While the API crude inventory data showed the US crude inventories increased by 3.618 million barrels last week, with analysts expecting a 1.600-million-barrel draw.

CURRENCIES

In the currency market, the Euro trading marginally lower against the British Pound and the upside pressure clearly weakened amid a solid ceiling in place. The Greenback, in terms of the US Dollar Index (DXY), slightly moved higher, however, today could see increased volatility spikes after the release of the CPI data. Meanwhile, GBPUSD struggled to extend bullish momentum as investors grew more cautious ahead of tomorrow’s BOE outcome.

GOLD

The precious metal still struggling to find strong upside momentum despite a softer US dollar. The recent bounce from last Friday’s low stalled at the hourly resistance around $2037 per ounce and showed multiple failures in the lower time frames. Today gold traders across the globe waiting for the US inflation numbers to get a clear picture of the metal’s long-term direction.

Economic Outlook

On the data front, German annual inflation slowed down for the second month in a row. The inflation slowed to 7.2 percent in April from 7.4 percent in March, the lowest in seven months.

Moving ahead today, the important events to watch:

US – CPI: GMT – 12:30

US – EIA crude inventories: GMT – 14:30

Technical Outlook and Review

EURUSD: For today, if the pair continues to trade below 1.1000 in the coming hours, the euro is likely to extend its decline toward the next support which stands at the 1.0930/00 level. Conversely, a confirmed break above the 1.1000 resistance can open the way for more advance in the direction of the 1.1035/40 mark.



The important levels to watch for today: Support- 1.0930 and 1.0900 Resistance- 1.1000 and 1.1035.

GOLD: For today, the first nearest support level is located at $2020. In case it breaks below this level, it will head towards the next support level which is located near $2014 then $2008. On the upper side, $2036 will act as an immediate and strong hurdle while $2048 will be a critical resistance zone.



The important levels to watch for today: Support- 2020 and 2000 Resistance- 2036 and 2048.

Quote of the day – “The vast majority of people compete in a time horizon that’s very near dated. There are many fewer investors who are thinking out a decade and beyond.” Matthew McLennon.
Read more - https://gulfbrokers.com/en/daily-market-report-660

 

[syamfx2020]

GBPUSD reversed from the fresh yearly highs of 1.2675 and retreated back to below 1.2570 ahead of the Bank of England interest rate decision. The central bank is expected to raise the bank rate by 25 basis points to 4.5% today. Interest rate decision to be announced at 12:00 GMT, with updated economic forecasts along with Governor Bailey's press conference. Investors will also be looking for signs that the hiking cycle is nearing its conclusion.

Technically, the overall momentum remains mixed after the king dollar makes a modest recovery. However, the currency pair is expected to regain upside momentum after the BOE decision. On the downside, 1.2560 remains the immediate support level, followed by 1.2540. Further selling pressure will intensify only if the pair break below 1.2500 levels. On the upper side, if the pair break above 1.2610 it would open doors towards the previous session resistance area of 1.2675 and above that 12690/1.27 is next. The expected trading range for GBPUSD today is between 1.2500 support and 1.2690 resistance.

EQUITIES

US stock futures are clawing back some of yesterday's losses. Looking further ahead to the US session, the US Producer price index (PPI) and jobless claims could influence the market mood. On the other hand, Fed policymakers Waller and Bowman are scheduled to speak today and tomorrow, with investors paying close attention to comments on inflation and interest rate hikes.

OIL

Crude oil futures prices hold gains into the weekly close despite the EIA report large crude Inventory build. The latest EIA report showed that US crude inventories rose by 3 million barrels last week, compared to the expectation of a 900,000-barrel decline. The key data for the oil prices rest of this week will once again be the OPEC monthly report, the movement of the US dollar and the FED policymaker's comments.

CURRENCIES

In the currency market, EURUSD struggles for clear directions as it seesaws near the lowest levels in three weeks. The sustainability of any gain in the currency pair in the coming days will largely depend on how the US dollar behaves. There is no high-impacting eurozone data due today. Instead, attention will be on the ECB policymaker’s comments. Investors will be watching carefully for clues about the ECB’S next move.

GOLD

The precious metal struggling to regain upside momentum as the US Dollar remains strong. During the previous session, the metal bounced back to above $2045 but failed to extend the upward momentum and it formed a head and shoulder pattern near the $2048 area. Today gold investors and traders should closely monitor the release of US PPI data which is scheduled for later in the day.

Economic Outlook

On the data front, US and China reported softer-than-expected inflation data. The U.S. consumer prices on a yearly basis decreased to less than 5% in April, marking the first time in two years. China's annual inflation rate fell to 0.1% in April 2023 from 0.7% in March, missing market estimates of 0.4%.

Moving ahead today, the important events to watch:

UK – BOE interest rate decision and statement: GMT – 11:00

US – PPI: GMT – 12:30

Technical Outlook and Review

EURUSD: For today, 1.0900 is the key support level, If the pair breaks below 1.0900, the slump will quickly extend toward the 1.0870 mark. On the upper side, the euro is likely to find immediate resistance at 1.0950 and then 1.0970.



The important levels to watch for today: Support- 1.0930 and 1.0900 Resistance- 1.1000 and 1.1035.

GOLD: From a technical perspective, gold is maintaining a negative bias according to the 4-hour chart. If the bearish momentum continues, then the next key support area to watch is $2020 then $2014. On the upper side, If the metal regains upside momentum and presses back above $2035 then the key resistance area to watch is $2050.



The important levels to watch for today: Support- 2020 and 2014 Resistance- 2036 and 2050.

Quote of the day – “Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.” Peter Lynch.
Read more - https://gulfbrokers.com/en/daily-market-report-661

 

[syamfx2020]

The U.S. dollar is considered the world over as currency that offers the most with regard to stability. The US Dollar Index, which measures the greenback’s value against the basket of six major currencies price action remained volatile and traded with a strong bid tone on Thursday. As of this writing, the index trades steady above 102. For today, the USD traders will now turn their attention to the release of the University of Michigan’s Consumer Sentiment Index for May.

Technically the current price action signals suggest that the short-term bullish trend remains intact. In the short-term, the key resistance for DXY 102.30/40 area, breaks this and closes above this resistance area then expects the market to zoom up to 102.80 and 103. On the downside, 101.80 will act as an initial cushion, in case it breaks below this level, it will head towards the next support level which is located near 101.55 then the key zone near 101.

EQUITIES

European shares started the new trading session on a positive note boosted by hawkish comments from ECB policymakers and stronger-than-expected earnings results. Moving ahead, the investors should closely watch the comments from the European Central Bank (ECB) Vice President Luis de Guindos will be delivering a speech. Wall Street had a messy week despite some good US economic and earnings news. US stock futures regained the upside momentum after the fresh data reinforced the bets that Fed will soon pause the rate hike campaign.

OIL

Crude oil prices reversed from the week's weekly highs due to concerns about weakening demand in the world’s top oil consumer. Trade data from China also showed that crude oil imports fell 16% annually to 10.6 million barrels per day in April. The recent bearish sentiment was also driven by the resurgence in the US dollar.

CURRENCIES

In the currency market, the British pound suffered significant losses against the USD on Thursday following the release of the Bank of England rate decision. BOE raised the bank rate by 25 basis points (bps) to 4.50% from 4.25% previously. While BOE Governor Andrew Bailey said the most aggressive interest rate rises in four decades could be near an end so long as inflation weakens. Meantime Euro trades near the key support area of 1.0900 and the upside pressure clearly weakened amid a solid ceiling in place.

GOLD

The precious metal remains volatile as the markets are unsettled by swings in volatility caused by the latest US CPI and PPI data. The metal got the market's favor by starting off this week, but demand for the metal receded as the markets are currently pricing for a 98% chance that the Federal Reserve would keep rates unchanged in June.

Economic Outlook

On the data front, the UK reported weaker-than-expected GDP data. UK Gross domestic product grew 0.1% from January to March compared with the previous three-month period. While UK manufacturing and industrial production accelerate in March. Manufacturing production in the UK rose 0.7% in March.

Technical Outlook and Review

EURUSD: The technical scenario is absolutely bearish and attempts to exit the current bearish channel will not succeed without moving above the $1.1000 resistance so far, the bears are still determined to break the psychological support of 1.0900 in the coming hours.



The important levels to watch for today: Support- 1.0890 and 1.0870 Resistance- 1.0940 and 1.0970.

GOLD: For today, the metal is expected to fall further and test the key support area of $1993/95 if it breaks and closes below the $2000 support area. On the upper side, the gold price is likely to find immediate resistance at $2018 then a crucial one at $2030.



The important levels to watch for today: Support- 2014 and 2018 Resistance- 2000 and 1993.

Quote of the day – “The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed.” ― Peter Lynch.
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