Market Reports by GulfBrokers - 2023

[syamfx2020]

Global markets started the new week on a positive note after US President Joe Biden signed the debt ceiling bill into law, averting a potentially catastrophic default by the US government. The bullish sentiment was also boosted by the latest OPEC+ meeting outcome.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, on Sunday, agreed another cut in global oil production next year to prop up prices. Saudi Arabia also announced to cut oil production by 1 million barrels per day in July.

Moving ahead to this week, the important economic events to watch are the series of Service PMI numbers from the US, UK, Germany and the Eurozone, the Reserve Bank of Australia and the Bank of Canada interest rate decision.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be GameStop, Nio and DocuSign.

GOLD

Gold price remain under pressure and extend the losses on Monday morning with their safe-haven appeal diminished as risk sentiment improved after the U.S. Congress passed a debt ceiling deal that averted a government default in the world's biggest economy. Meantime, the latest US employment data indicates strong hiring momentum and increased layoffs. June rate hike probability by the Fed rises to 32% post-NFP release, up from 22%. For this week, the main drivers for gold remain the movement of the US dollar and inflation data from China.



From a technical perspective, The $1930 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 $1920/18 support zone. On the upper side, in case the metal manages to settle above $1952, it will regain upside momentum and head towards the next resistance level at $1965/70.

DOLLAR INDEX

The dollar index, which measures the US currency against six others holds the Friday gains. The dollar strengthened on Friday after data showed an increase in jobs in the world's largest economy last month. U.S. nonfarm payrolls added 339,000 jobs in May, nearly double the median estimate of 195,000 and the largest increase since January 2023, U.S. Labor Department data showed on Friday. For the dollar, no major data is expected on the economic calendar this week, although the US ISM services PMI and factory orders are scheduled later on Monday and will be important to watch.



This week, good support is expected at the 103.40/30 area, with this zone having been held last week, failure to defend the mentioned support level has the potential to drag the pair further towards the 103 support zone. On the flip side, a move above 104.70 (the previous week high’s) again will push the pair into a new trading zone, which may offer further buying opportunities until the 105 and 105.30 zones.

EURUSD

EURUSD closed last week slightly higher but it is far too early however to suggest the euro-dominant downtrend is over. This week, investors largely focused on ECB President Christine Lagarde’s speech for insights into the central bank's rate hike path. Lagarde is also scheduled to speak at a hearing before the Committee on Economic and Monetary Affairs on Monday evening. It will also be an idea to keep a lookout for the Eurozone retail sales and GDP numbers this week.



For this week, the immediate support prevails at 1.0660 then 1.0630, further breakout of 1.0630 can lead the index towards 1.0600 and 1.0590 levels. On the flip side, a recovery of the bullish move requires a break of 1.0800. This opens the door toward 1.0850 and a further price advance makes 1.0900 available.

DOW JONES

Dow Jones and other US indices registered solid gains on Friday following the release of mixed US jobs data and the clearance of the US debt limit deal. On the other hand, the growing expectations that the Federal Reserve will pause its interest rate hikes this month also fuel the bullish sentiment. However, flat start at the reopening of futures trading on Monday with US equity futures little changed. This week in Wall Street, the main event of interest is US ISM services PMI data and GameStop earnings results.



DXY is traded steadily above the 33,800 area but seemed limited in its attempts to move higher in the short term. This week's resistance for the Dow appears to be around 34,300. If the price break and closes above 34,300, the next upside level to watch is 34,500 then 34,880. On the downside, if the index breaks and close below the 33,500 area again the next immediate downside area is to watch 33,200 and 33,050.

Check out the detailed weekly analysis here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-83

 

[syamfx2020]

Shares of the world's most valuable listed company Apple (NASDAQ: AAPL) reached a new all-time high of $185.90 on Monday ahead of its annual software developer conference. The tech pioneer unveiled a new "Vision Pro" mixed-reality headset during its worldwide developer’s conference Monday. While the stock slightly reversed from all-time highs in after-hours trading after the announcement of the long-anticipated product's price will start at $3499.

The new headset will offer users a new way to experience surrounding spaces and also use existing apps. Users can now immerse themselves in fully immersive VR spaces or interact with apps and experiences that blend into their own surroundings in AR mode. The company also announced new products including a 15-inch MacBook Air, a new iOS 17 operating system for iPhone and FaceTime for Apple TV.

EQUITIES

US major indices ended slightly lower on Monday as the data from ISM services PMI showed weakness in the US economy. The ISM Services PMI fell to 50.3 in May from 51.9 in April, pointing to the fifth consecutive month of expansion in the services sector, but the slowest in the current sequence. Meantime, the new factory orders in the US increased by 0.4% in April but slowed from the downwardly revised 0.6% increase in the prior month and missing market forecasts of a 0.8% jump.

OIL

Crude oil prices reversed from the post-OPEC+ meeting gains after the service sector data from the US disappointed. On Monday, the oil prices started the new week on a positive note after key producer Saudi Arabia slashed output by another one million barrels per day for at least a month starting in July to prop up prices, while fellow OPEC+ members agreed to continue current cuts to 2024.

CURRENCIES

In the currency market, EURUSD rebounded back to above 1.0720 after the president of the European Central Bank (ECB) hinted at more interest rate hikes in a speech on Monday reaffirming the ECB's commitment to combating inflation. The Australian dollar extend the gains against the US dollar and other major currencies after the Reserve Bank of Australia unexpectedly raised the cash rate by 25bps.

GOLD

The precious metal bounced back to above $1960 on Monday following the release of weaker-than-expected US macroeconomic data. As of this writing, the gold price trades at $1958. On the other hand, the growing expectations that the Federal Reserve will pause its interest rate hikes this month also fuel the bullish sentiment.

Economic Outlook

On the data front, The Reserve Bank of Australia raised interest rates unexpectedly to 4.10% from the previous 3.85%. The market expected the central bank to keep interest at 3.85%. “More monetary policy tightening may be required to ensure inflation returns to target within a reasonable time frame, but that will depend on how the economy and inflation evolve." – RBA said.

Moving ahead today, the important events to watch:

Eurozone – Retail Sales: GMT – 09:00

CAD – Ivey PMI: GMT – 14.00

Technical Outlook and Review

EURUSD: From a technical perspective, the pair still maintains a negative bias according to the daily chart. Today, If the short-term bearish momentum continues then the next key support area to watch is 1.0660 and 1.0630. On the upper side, If euro regains upside momentum and presses back above 1.0740 then the key resistance area to watch is 1.0780 and 1.0800.



The important levels to watch for today: Support- 1.0660 and 1.0630 Resistance- 1.0740 and 1.0780.

GOLD: Technically, the immediate outlook seems slightly neutral as the latest decline back to $1940 was met with fresh buying. For today, the resistance for the metal is around $1975, any break over targets is $1985/86. On the downside, any meaningful pullback now seems to find some support near the $1952 and then $1948 zones, below which the slide could further get extended towards the $1944/40 zones.



The important levels to watch for today: Support- 1952 and 1948 Resistance- 1966 and 1975.

Quote of the day – “You will come to know that what appears today to be a sacrifice will prove to be the greatest investment that you will ever make.” Gordon B. Hinkley.
Read more here - https://gulfbrokers.com/en/daily-market-report-674

 

[syamfx2020]

It is now one week to the Federal Reserve interest rate decision, and the US Dollar Index (DXY), a measure of the value of the USD against a basket of weighted currencies price action shows the outlook is neutral with a bullish bias.

The DXY has been in a recovery mode in recent weeks, and rising since May 4. The king dollar had a strong performance in May. 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.

Dollar Index Fundamental analysis​

This week, dollar investors have become increasingly concerned about America’s economic health going forward following the data released on Monday showing that activity in the US service sector slowed in May. The US weekly jobless claims data and anticipation of the Fed's announcement will set the tone for USD for the rest of the week. Moving ahead, an electrifying week is coming up, featuring another crucial US inflation report and the Fed’s most crucial meeting of 2023. Both will be key pieces of the puzzle for the dollar as traders grapple with whether the Fed will pause or be forced to resume hiking to 6% or higher. During the last meeting, the Fed lifted its benchmark interest rate by another 0.25%, to a range of between 5.00% and 5.25%. It was the tenth consecutive increase.

DXY, short-term and long-term Technical outlook​

Technically, the short-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 DXY can easily rise towards the next key resistance of 104.70 then the 105 area. On the downside, the 103.80 area of confluence has recently been held as a firm support, failure to defend the mentioned support levels has the potential to drag the USD further towards the 103.40.

The below chart plots the long-term view of the greenback. On the upper side, a hurdle can be noted near 105 the psychological resistance zone. A break and daily closing above the 105.10 level shall trigger renewed buying interest, validating a rally towards the next resistance zone 105.35 then 105.60 (200-day simple moving average). On the downside, the key support area to focus 103.20. A daily close below that area could be seen as a strong bearish shift and open the floor to an extended slide toward 102.50 and 102.

Conclusion​

June FED meeting outcome will be an important focus and will certainly have a significant impact on the dollar and other assets. Heading into the interest rate decision, the Fed will hold its monetary policy meeting on June 13-14, there is wide expectation that the Fed will keep interest rates unchanged. Therefore, in my view, I suspect that the dollar will continue with its bullish trend till next week's FED meeting outcome then we can expect a sharp reversal from the highs.

Read more here with charts - https://gulfbrokers.com/en/june-14th-big-day-for-usd-will-the-bulls-or-the-bears-win-the-day

 

[syamfx2020]

EURUSD sharply reversed from the monthly highs after the US dollar regained momentum following hawkish FED Powell's testimony. The currency pair extends the reversal during the European session after the release of worse-than-expected PMI data from the major European economies. As of this writing, EURUSD trades below 1.0870.

During the previous session, EURUSD broke above the psychological resistance of 1.1000 again and hit a fresh monthly high of 1.1010 ahead of Powell’s testimony to Congress. Technically, if the bearish momentum continues the next immediate supports to watch today are 1.0850/30.

However, the single currency has been primarily supported in recent weeks by expectations the European Central Bank will continue with rate hikes. Moving ahead, the movement of the US dollar and the latest PMI numbers from Germany and the Eurozone is likely to significantly affect the currency pair.

EQUITIES

US stock futures bears are firmly in control as the Fed Chair told the US Congress that further rate hikes will be necessary. Investor's focus now turns to the release of flash Purchasing Managers’ Index (PMI) data from the US and comments from the FED policymakers Bullard and Bostic. Meanwhile, European shares opened lower after the release of disappointing PMI data from Germany, Eurozone and France.

OIL

Crude oil futures struggling to recover from the previous session's losses as investors remain concerned about the global demand outlook and uncertainty regarding the Fed’s future rate hike decisions also appeared to pressure market sentiment. While the latest EIA crude inventory data showed the US crude inventories fell by 3.831 million barrels in the week ending June 16 compared with market expectations of a 0.329 million build.

CURRENCIES

In the currency market, the US dollar index which measures the greenback against major peers is looking to regain the upside momentum while trading back above the 103 level in early European trading supported by hawkish comments from the Federal Reserve Chair Jerome Powell and other policymakers. “We remain committed to bringing inflation back down to our 2 percent goal and to keeping longer-term inflation expectations well anchored. Reducing inflation is likely to require a period of below-trend growth and some softening of labor market conditions. Restoring price stability is essential to set the stage for achieving maximum employment and stable prices over the longer run,” Powell said.

GOLD

The precious metal extends the slide after Fed Chair Jerome Powell maintained his hawkish stance regarding the path of interest rates in the US. The metal hovers near the monthly lows and remains volatile as the markets are unsettled by swings in volatility caused by Powell's hawkish testimony. Gold is sensitive to high interest rates which lift the opportunity cost of holding non-yielding bullion.

Economic Outlook

On the data front, the Bank of England has announced an increase of 0.5% to its Base Rate this month. This decision surprised market expectations of a smaller 25 basis point rate hike. This is the 13th consecutive rise and has pushed interest rates to 5%, which is the highest they’ve been for 15 years.

Moving ahead today, the important events to watch:

US – Manufacturing PMI: GMT – 13:45

US – Services PMI: GMT – 13.45

Technical Outlook and Review

EURUSD: Technically the current price action signals suggest that a short-term bearish trend remains intact. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 1.0850 and 1.0830 if the bearish momentum continues. On the upper side, the first resistance is near the 1.0910 level. The next main resistance could be near the 1.0940 level.



The important levels to watch for today: Support- 1.0830 and 1.0800 Resistance- 1.0910 and 1.0940.

GOLD: Technically, the overall momentum remains bearish after the previous session's strong bearish move. In the short term, if the metal breaks below $1910 it would open doors toward the next key support area of $1900 and below that 1890 is next. On the upper side, $1925 will act as an immediate while $1935 will be a critical resistance zone.



The important levels to watch for today: Support- 1910 and 1900 Resistance- 1925 and 1932.

Quote of the day – “The biggest mistake investors make is to believe that what happened in the recent past is likely to persist. They assume that something that was a good investment in the recent past is still a good investment.” - Ray Dalio.
Read more - https://gulfbrokers.com/en/daily-market-report-675

 

[syamfx2020]

The world’s largest cryptocurrency, Bitcoin (BTCUSD) was largely flat in the US early Friday, maintaining the week’s gains. The price of Bitcoin is set to end the week strongly, the pair break above $30k and rallies to the highest level since April on Wednesday.

After weeks of consolidation, the volatility in cryptocurrencies has surged since last week. Bitcoin bounced back to above $30,000 after investors' optimism rose following news of BTC spot ETF applications. BlackRock (NYSE: BLK), the world's largest asset manager, applied to establish a Bitcoin exchange-traded fund (ETF) in partnership with the cryptocurrency exchange Coinbase Global Inc. BlackRock is one of the world's preeminent asset management firms and a premier provider of investment management.

BlackRock filed the necessary paperwork with the SEC to establish the iShares Bitcoin Trust, which would oversee the proposed ETF. And following this, four other companies —Invesco, WisdomTree, Valkyrie, and Bitwise—have formally submitted their registration to the Securities and Exchange Commission (SEC) for the creation of a bitcoin ETF.

$BTCUSD: Short-term technical outlook​

The four-hour chart shows that the price of Bitcoin has been in a strong bullish trend lately after it found strong buyers near the lower trendline of the descending channel. $BTC managed to move above the important resistance level of $30,000. However, the crypto pair needs to break above the $31,000 barrier in the coming hours for further upside. If the pair manages to settle above $31,000, it will gain upside momentum and head towards the next resistance level of $31,900 then $33,200. On the downside, any meaningful pullback now seems to find some support near the $28,700 and then $27,400/200 zones.

Read more - https://gulfbrokers.com/en/bitcoin-set-for-strong-weekly-gain-but-will-the-gains-hold

 

[syamfx2020]

Global stocks started the new week on a mixed note while crude oil prices appreciated following the news of an attempted insurrection in Russia over the weekend. Moving ahead, markets are expected to be volatile this week, with investors closely watching economic data and global events. This week the economic calendar will bring investors the UK GDP, German retail sales, Eurozone and German CPI, US GDP report, PCE price index and durable goods orders data.

The key events to focus on for this week are Friday’s Eurozone CPI data and US personal income and spending figures. Both the numbers could help investors determine how the Federal Reserve and European central bank will move ahead with its interest rate policy.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Nike, Manchester United, Micron and Walgreens.

GOLD

The safe-haven metal experienced a sharp decline last week as traders increased their bets on a rate hike in July following the hawkish comments by the Federal Reserve (Fed) Chair Jerome Powell in its first-day appearance before the US Congress. However, on Friday the metal slightly regain bullish momentum after the release of weaker-than-expected Flash U.S. manufacturing PMI data. For gold this week, the focus will be on Jerome Powell and FED policy makers's speeches, the release of the PCE data, and the impact of recent events in Russia on commodities.



The technical scenario is absolutely bearish after the last couple of week's sell-off. While considering the recent bearish momentum the precious metal may find a strong support near the 1900/1890 areas this week. On the upper side, If the metal regains upside momentum and presses back above 1935 then the critical resistance area to watch is 1945 then 1952.

DOLLAR INDEX

The U.S. Dollar Currency Index, which measures the greenback against a basket of six currencies recovered from the 6-week lows and rebounded back to above 103 on Friday after Federal Reserve Chair Jerome Powell’s remarks. During a Congressional hearing this week, Fed Chair Powell reiterated that interest rates would continue to rise this year, and he stated that two more rate hikes would be "a pretty good guess.". Fundamentally the greenback is expected to be extra volatile this week due to a busy economic calendar and all eyes remain on Friday’s US PCE report.



From a technical perspective, The 101.90 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 101.30 and 101 support zone. On the upper side, in case the DXY manages to settle above 103.40, it will extend upside momentum and head towards the next resistance level at 103.80 and 104.

EURUSD

EURUSD surged to a fresh monthly high last week boosted by the weak dollar. However, the currency pair had a strong retreat on Thursday and Friday after lagging to almost 1.1010. On Friday, the euro recorded its largest one-day decline since mid-March after the release of worse-than-expected PMI data from the major European economies. This week's European Union leaders summit and Eurozone inflation data are expected to be a pivotal moment for the euro. On the other hand, euro traders should also closely monitor ECB President Christine Lagarde’s appearances early in the week.



Technically, the overall momentum remains mixed after the king dollar makes a modest recovery during the last two trading sessions. However, the currency pair is expected to regain upside momentum this week. On the downside, 1.0870 remains the immediate support level, followed by 1.0840. Further selling pressure will intensify only if the pair break below 1.0830 levels. On the upper side, if the pair break above 1.0960 it would open doors towards the previous week's resistance area of 1.1010 and above that 1.1080 is next.

DOW JONES

Dow futures are clawing back some of the previous week's losses. The Dow Jones and other major US indices traded with a bearish tone last week after several Federal Reserve officials and FED chair Powell maintained that the Fed would need to maintain its hawkish tone in the next few months. This week, the US Personal Consumption Expenditures (PCE) Price Index data will likely have a significant effect on the Dow Jones and other US indices because the PCE data is said to be the Federal Reserve’s preferred measure of inflation.



The daily chart maintained its bearish bias on the daily chart and has also started gaining negative momentum on the 4-hourly chart, supporting prospects for an eventual bearish breakdown. From a technical perspective, the sustained break below the 55-day Simple Moving Average (SMA) signals bearish momentum. Oscillators on the daily chart remain firmly in the bearish territory, suggesting further downside potential. This raises the possibility of Dow sliding towards the 33,450 level, followed by the 33,300/250 area.

Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-84

 

[syamfx2020]

Shares of the iconic Premier League club Manchester United (NYSE: MANU) remains volatile in recent days as takeover drama continues. The stock retreated back to $22 on Monday after reaching $26.60 early this month ahead of the earnings announcement. The soccer club expected to report the third quarter fiscal earnings before the market opens on Tuesday, June 27th. The stock gained more than 40% this month.

On Tuesday, June 14th the stock saw its biggest one-day jump since November after Qatari newspaper Al-Watan tweeted that Qatari banker Sheikh Jassim Bin Hamad Al Thani had won a bid for control of Manchester United. Al-Watan reported the news based on unidentified “press reports,” and said the deal would be announced soon.

The lack of clarity over the Man United takeover race is prompting a tail-off in club stock market value and the United fans are desperately hoping that the takeover is resolved soon. So carefully watch the earnings announcement today because there are chances the new owner of Manchester United from a bidder perspective will be known by the time the club reports earnings.

EQUITIES

Wall Street ended mixed on the first trading day of the week as market participants and investors continue to assess future rate path after hawkish comments from Fed policymakers. Moving ahead to the North American session, investors should closely monitor the release of the US Durable goods orders and consumer confidence figures which might have a very high impact on Wall Street.

OIL

Crude oil futures trading in a narrow range Tuesday morning as traders and investors are waiting for fresh US economic data. During the previous session, the oil prices ended higher after Russia faced a brief rebellion by a private military group over the weekend, raising concerns about political instability in one of the world’s largest oil producers that could hamper supply.

CURRENCIES

In the currency market, EURUSD rebounded back to above 1.0940 after the hawkish comments from the ECB president, Christine Lagarde. Lagarde said, Inflation in the euro area is too high and is set to remain so for too long. But the nature of the challenge in the euro area is changing. Inflation is more persistent, caused by the fact that it is working its way through the economy in phases.

GOLD

The precious metals are struggling to regain footing after suffering steep losses in the last few trading sessions. On the other hand, the metal also suffers from the market’s pessimism about China, as well as the fresh hawkish concerns for the Federal Reserve (Fed). Markets see a 77% probability of a 25bps rate hike for the July 26th meeting. As of this writing, the gold price trades below $1925.

Economic Outlook

On the data front, Ifo Institute released the German IFO business climate data. The German business climate index declined to 88.50 in June from 91.70 in May and missed forecasts of 90.70. The Ifo Expectations index fell to 83.60 points in June from 88.30 points in May and missed forecasts of 88. Ifo current conditions index decreased to 93.70 in June from 94.80 in the previous month.

Moving ahead today, the important events to watch:

US – Durable goods orders: GMT – 12:30

US – CB consumer confidence: GMT – 14.00

Technical Outlook and Review

EURUSD: For today, 1.0900 is the immediate support level, followed by 1.0880. If the pair breaks below 1.0880, the slump will quickly extend toward the 1.0840 mark. On the upper side, the euro is likely to find immediate resistance at 1.0970 and then 1.1010.



The important levels to watch for today: Support- 1.0900 and 1.0880 Resistance- 1.0970 and 1.1010.

GOLD: From a technical perspective, gold is maintaining a negative bias according to the weekly chart. If the bearish momentum continues, then the next key support area to watch is $1918 then $1910. On the upper side, If the metal regains upside momentum and presses back above $1930 then the key resistance area to watch is $1935 and $1938.



The important levels to watch for today: Support- 1918 and 1910 Resistance- 1930 and 1935.

Quote of the day – “The markets generally are unpredictable, so that one has to have different scenarios. The idea that you can actually predict what’s going to happen contradicts my way of looking at the market.” – George Soros.
Read more - https://gulfbrokers.com/en/daily-market-report-676

 

[syamfx2020]

It’s going to be a volatile journey today, especially the New York session. Volatility in the capital markets is expected to increase during the North American session today due to the appearances by heads of Central banks at the ECB’s annual forum in Sintra, Portugal. A panel discussion at the ECB Forum on Central Banking in Sintra will feature key figures such as Federal Reserve Chairman Jerome Powell, European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey, and Bank of Japan's Kazuo Ueda.

While all eyes turn toward Federal Reserve Chairman Jerome Powell's speech, which is scheduled at 13:30 GMT. During the last week, Powell gave hawkish testimony to Congress. Powell said policymakers anticipate interest rates would need to be raised to moderate U.S. economic growth and contain inflationary pressures.

EQUITIES

Wall Street ended higher on Tuesday supported by stronger-than-expected US macro-economic data. However, the upside momentum was limited as investors are keeping a close watch on the global central bank's actions as they try to assess the impact of interest rate hikes on global growth. Meantime, several market participants started to anticipate that the FED will continue to take action until Inflation is brought down after the release of stronger-than-expected US economic data.

OIL

Crude oil futures slightly recovered from the early session lows. On the positive side, the API crude inventory data showed the US crude inventories declined by about 2.4 million barrels last week, exceeding forecasts for a 1.5-million-barrel drop. Moving ahead today, crude oil traders should closely monitor the release of the EIA crude inventory report and US FED chair Powell's speech.

CURRENCIES

In the currency market, EURUSD trades flat as investors await further cues from the European Central Bank regarding its rate hike trajectory, as the latest Eurozone inflation data will release on Friday. 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 currency pair.

GOLD

The precious metal tumbled to its lowest level since early March. As of this writing, the metal trades below $1910. The strong bearish momentum was driven by the release of strong US economic data. The latest US economic data showed that new home purchases have climbed to the fastest annual rate in more than a year, durable goods orders topped estimates and consumer confidence reached the highest level since the start of 2022.

Economic Outlook

On the data front, Australia reported that the Consumer Price Index (CPI) increased by 5.6% on a yearly basis in May. This figure followed a 6.8% rise in April and fell below market expectations of 6.1%.

Moving ahead today, the important events to watch:

UK – Bank of England (BoE) Governor Andrew Bailey speech: GMT – 13:30

US – Fed Chairman Jerome Powell speech: GMT – 13:30

Eurozone - ECB President Christine Lagarde speech: GMT – 13:30

US – EIA crude inventories: GMT – 14:30

Technical Outlook and Review

EURUSD: Technically, the immediate outlook seems slightly neutral as the latest decline back to 1.0850 was met with fresh buying. For today, the resistance for Euro is around 1.0980, any break over targets is 1.1010/30. On the downside, any meaningful pullback now seems to find some support near the 1.0900 and then 1.0880 zones.



The important levels to watch for today: Support- 1.0920 and 1.0890 Resistance- 1.0980 and 1.1030.

GOLD: Gold price struggling to regain momentum. Moving ahead, the key support remains for the metal 1900, a break below this level will confirm a possible move to 1888/85. On the upper side, watch a break above 1930 again.



The important levels to watch for today: Support- 1900 and 1895 Resistance- 1920 and 1930.

Quote of the day – You should review your rules at the beginning of the day and review your trading at the end of the day. If you followed your rules, even if you lost money, put yourself on the back” – Dr. Van K. Tharp.
Read more - https://gulfbrokers.com/en/daily-market-report-677

 

[Paulina_wagner]

Strong US economic data has fueled a bearish momentum, causing a tumble in the price of the precious metal. Positive indicators indicate a thriving US economy, potentially reducing demand for the metal as a safe-haven asset. Monitoring the impact of these factors on the metal's price will be crucial.

 

[syamfx2020]

The US Dollar Index, which measures the greenback’s value against the basket of six major currencies remains steady ahead of the revised version of the US Gross Domestic Product for the first quarter of 2023, which is set to be released at 12:30 GMT. The outcome of the final prints of the Q1 growth rate should be a big piece of the next trend for the king dollar.

The overall momentum remained bullish for the dollar last couple of weeks on speculation that the Federal Reserve would continue to raise interest rates. The king dollar received additional buying pressure on Wednesday after Fed Chair Powell reiterated his hawkish message. The markets predict at least two more rate hikes by the Fed in the near term, which could keep the dollar relatively strong.

EQUITIES

European shares opened flat as investors grew more cautious about placing aggressive bids ahead of the German inflation reading to be announced today. Wall Street ended slightly lower on Wednesday after Federal Reserve chair Jerome Powell reiterated their commitment to keeping raising interest rates. For today, the main drivers for the markets are the Federal Reserve Bank of Atlanta President Raphael Bostic's speech, US GDP, and the weekly Initial Jobless Claims data.

OIL

Oil prices price action seems to be the buyers remaining in power and the technical scenario is turning bullish ahead of the key releases from the US. Crude oil prices rebounded and registered solid gains on Wednesday after the crude inventory report showed nationwide stockpiles fell the most in two months. The EIA data showed that US crude inventories declined by 9.6 million barrels last week, way higher than forecasts of a 1.757-million-barrel draw.

CURRENCIES

In the currency market, GBPUSD retreats back to near 1.2600 on Wednesday. The strong bearish sentiment was fueled by the mixed comments from the Bank of England (BoE) Governor Andrew Bailey and the resurgence in the US dollar. While considering the recent pullback the US dollar movement will continue to play a vital role in this currency pair's future direction. Meantime, the New Zealand dollar remains the weakest currency pair of this week.

GOLD

The rise in the dollar has been a setback for gold, which trades near its lowest in more than 3-months. The Federal Reserve's hawkish remarks contributed to negative sentiment in the commodities market. The overall momentum is expected to be under pressure in the coming days due to the pressure from the strong dollar and expectations for more interest rate hikes by major central banks. Moving ahead to the North American session, the gold traders will now be focused on the latest US GDP data which is set to be released at 12.30 GMT.

Economic Outlook

On the data front, the Australian Bureau of Statistics reported stronger-than-expected retail sales data. The data showed that the total value of sales at the retail level rose by 0.7% in May as compared to a modest 0.1% increase anticipated and a flat reading in the previous month.

Moving ahead today, the important events to watch:

Germany – CPI: GMT – 12:00

US – GDP: GMT – 12:30

Technical Outlook and Review

EURUSD: For the euro, the first nearest support level is located at 1.0880. In case it breaks below this level, it will head towards the next support level which is located near 1.0860 then 1.0840. On the upper side, 1.0940 will act as an immediate and strong hurdle while 1.0970 will be a critical resistance zone because, above this, bulls are likely to dominate.



The important levels to watch for today: Support- 1.0880 and 1.0860 Resistance- 1.0940 and 1.0970.

GOLD: The precious metal remains under pressure a clear breakdown of the support at 1900/1898 could open space for further declines while only a recovery to 1930 would reverse the short-term negative trend.



The important levels to watch for today: Support- 1900 and 1895 Resistance- 1914 and 1920.

Quote of the day – "I think you have to learn that there's a company behind every stock, and that there's only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies." - Peter Lynch.
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