Market Reports by GulfBrokers - 2023

[syamfx2020]

The crypto market was trading slightly weaker during the early European hours on Tuesday following the previous session's steep fall. The crypto pairs fell moderately on Monday after the United States Commodity Futures Trading Commission (CFTC) sued crypto exchange Binance and its CEO Changpeng “CZ” Zhao for violating trading and derivatives regulations, as well as for market manipulation.

The largest crypto token Bitcoin slightly recovered from the previous session's losses but struggling hold above $27,000. As of this writing, the $BTCUSD trades at $26,980. Its largest peer, Ethereum, the world's second-largest cryptocurrency also struggling to regain bullish sentiment. Meanwhile, Crypto-related stocks also drop alongside the cryptocurrency pairs. Coinbase (COIN) stock dropped almost 9% on Monday. Coinbase is the largest U.S.-based cryptocurrency exchange, trading more than 30 cryptocurrencies.

EQUITIES

Wall Street ended higher on Monday after First Citizens Bank's acquisition of deposits and other assets belonging to Silicon Valley Bank eased concerns about the banking sector. As part of the agreement, all Silicon Valley Bank depositors will automatically become depositors of First Citizens Bank. The deal includes the purchase of about $72 billion in SVB assets at a discount of $16.5 billion.

OIL

Crude oil prices rebounded strongly on easing concerns over the global banking sector. The oil prices received additional buying pressure after a legal dispute halted around 400,000 barrels a day of oil exports from the Ceyhan port in Turkey, tightening the market.

CURRENCIES

In the currency market, the dollar and safe-haven currencies struggled for traction during the Asian session while riskier ones held gains. Euro extended the gains against the US dollar. Moving ahead, euro traders and investors should closely monitor the European Central Bank (ECB) president, Christine Lagarde's speech later today.

GOLD

The precious metals trading marginally lower on Tuesday and the upside pressure clearly weakened amid a solid ceiling in place. The safe haven metal appears to be in a bearish trend as it trades below the key level of $1965. If the current trend continues, it is expected to decline further to $1930 by the end of the week.

Economic Outlook

On the data front, the Australian Bureau of Statistics (ABS) released the latest retail sales data. Australia’s retail sales rose by a modest 0.2% in February, the figure marks a significant slowdown from the 1.8% increase recorded in January.

Moving ahead today, the important events to watch:

Eurozone - ECB President Lagarde Speech: 13:15

US – Consumer Confidence: GMT – 14:00

Technical Outlook and Review

EURUSD: Today as long as the metal trades above 1.0800 levels, the uptrend will remain in place. On the upper side, the next resistance is located around 1.0840, a break above this level will confirm a possible move to 1.0870. On the downside, 1.0800 is the immediate support level, followed by 1.0770. Further selling pressure will intensify only if the euro break below 1.0750 levels.



The important levels to watch for today: Support- 1.0770 and 1.0750 Resistance- 1.0840 and 1.0870.

GOLD: From a technical perspective, the 1944 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 1940 and 1936 support zone.



The important levels to watch for today: Support- 1944 and 1940 Resistance- 1956 and 1960.

Quote of the day – Wall Street has a few prudent principles; the trouble is that they are always forgotten when they are most needed. – Benjamin Graham.
Read more - https://gulfbrokers.com/en/daily-market-report-639

 

[syamfx2020]

Shares of the athletic apparel maker Lululemon (NASDAQ: LULU) jump almost 15% in extended trading on Tuesday after the company reported stronger-than-expected Q4 financial results. The company's revenue for the quarter rose 30.0% to $2.77 billion from $2.13 billion last year and the company expects revenue growth of 18 percent in the first quarter of 2023. The apparel retailer opened 32 net new company-operated stores during the quarter, ending the year with 655 stores globally.

• Earnings per share: $4.40 vs. $4.26 expected
• Revenue: $2.77 billion vs. $2.7 billion expected

"Entering 2023, we look forward to another year of strong momentum around the world and the execution of our growth plan," Lululemon CEO Calvin McDonald said. “In the fourth quarter and full year 2022, we delivered strong results across the business driven by our innovative products, powerful guest experiences, and strategic market expansion,” – Calvin added.

EQUITIES

US stock futures trade higher as Banking concerns ease. The upside momentum is also boosted by the hope of less aggressive rate hikes from the US Federal Reserve going forward. The E-commerce giant, Alibaba's US-listed stocks surged more than 12% on Tuesday after the company revealed plans to split its business into six critical units covering e-commerce, media, and the cloud.

OIL

Crude oil prices extend the rebound Wednesday morning following the release of API crude inventory data. The API data showed that US crude inventories unexpectedly declined by 6.1 million barrels last week, compared to the market expectations for a 180,000-barrel rise. On the other hand, OPEC's de-facto leader Saudi Arabia said the oil cartel should keep supplies steady for 2023 as it navigates a fragile recovery in global oil demand.

CURRENCIES

In the currency market, GBPUSD holds steady above 1.2300 along with the euro after the governor of the Bank of England dismissed the prospect of an imminent financial crisis. Bailey said that further monetary tightening would be required if signs of persistent inflationary pressure became evident. Bailey warned the BOE would focus on battling inflation despite banking stress. However, again the trend of the GBP would largely depend on the trend of the dollar index.

GOLD

The safe-haven metal is struggling to firm to the upside despite the economic uncertainties due to aggressive interest rate hike bets from the central banks and the banking crisis showing signs of calming down. During the previous session, the metal bounce back to above $1970 but failed to extend the rebound. As of this writing, the precious metal is trading below $1962.

Economic Outlook

On the data front, US consumer confidence surprisingly ticked higher. The latest data showed the US Consumer Confidence (CB) improved in February, with the main index rising from 103.4 to 104.2.

Moving ahead today, the important events to watch:

US – Pending home sales: 14:00

US – EIA crude inventories: GMT – 14:30

Technical Outlook and Review

EURUSD: For today, the key resistance is located above the previous session’s high around 1.0850, a break above this level will confirm a possible move to 1.0870/90. On the downside, any meaningful pullback now seems to find some support near the 1.0800 and 1.0780 zones.



The important levels to watch for today: Support- 1.0800 and 1.0780 Resistance- 1.0850 and 1.0890.

GOLD: Technically the overall sentiment remains mixed. However, a fresh demand for gold can be anticipated once the metal rises above the $1980 resistance. A break above this level will confirm a possible move to $2000. On the other hand, the immediate support prevails at $1958, further breakout of $1955 can lead the pair towards $1948/44 levels.



The important levels to watch for today: Support- 1955 and 1948 Resistance- 1974 and 1980.

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-640

 

[syamfx2020]

As we are aware, more countries are looking to replace dollars for international trade since Russia’s military invasion of Ukraine in July last year. Meantime India, Asia's third-largest economy is working hard to make the Indian Rupee a global trade currency. Currently, the U.S. dollar is the world's global currency and the USD has been the dominant international currency for many decades. However, after the Russia-Ukraine war, many countries are beginning to explore alternatives to the dollar for trade purposes.

India’s efforts to internationalize the rupee are not intended to challenge the supremacy of the US dollar- T Rabi Sankar, Deputy Governor of the Reserve Bank of India (RBI).

RBI pushing hard for Indian rupee’s globalization: What is Vostro Account?​

The Reserve Bank of India has allowed banks from 18 countries to open special Rupee Vostro Accounts (SRVAs) to facilitate international trade in INR. It’s simple with this, Indian importers can make payments for imports in Indian Rupees instead of currencies like Dollars and Euros.

The 18 countries are: Fiji, Botswana, Guyana, Germany, Kenya, Israel, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda and the United Kingdom.

“Indian importers undertaking imports through this mechanism shall make payment in INR (Indian Rupee), which shall be credited into the special Vostro account of the correspondent bank of the partner country, against the invoices for the supply of goods or services from the overseas seller/supplier,” the RBI said.

International Settlement of Trade in Indian Rupee​

In July 2022, RBI announced the mechanism to settle overseas trade in rupees. The mechanism implies that the rupee can be used as a reserve currency for global trade. The settlement system allows for the use of the Indian rupee in place of dollars and other major currencies in all international transactions. As per the latest reports, India is trying to push the rupee settlement of the international trade agenda with foreign countries during the G20 meetings.

Recent developments following the introduction of the “International Settlement of Trade in Indian Rupee” system:

• India is one of Tanzania’s biggest trading partners. India and Tanzania have reached an agreement that to establish trade in their own currencies, the Tanzanian Shilling, and the Indian Rupee.
• As per the latest reports, Egypt has just offered to purchase rice from India in Indian Rupee. If the deal to settle trade in the Indian rupee between India and Egypt goes through, Egypt would join 18 countries.
• India and the UAE have initiated talks to establish payments through a rupee dirham mechanism. Both countries also signed a free trade agreement (FTA) in May last year. “Discussions with India, one the largest trading partners of the Gulf country, on settling bilateral trade in rupee is in the early stage” - Dr Thani bin Ahmed Al Zeyoudi, UAE’s Minister for Foreign Trade.

• India has been already exploring a rupee trade settlement mechanism with Russia since Russia already dumped the dollar trade. India is still hopeful of a rupee trade with Russia because 20 Russian banks, including Gazprom, Rosbank, Tinkoff Bank and Credit Bank of Moscow, have opened rupee Vostro accounts with authorised dealer banks in India.

Check out the original blog here - https://gulfbrokers.com/en/internationalization-of-inr-indian-rupee-gaining-global-recognition

 

[syamfx2020]

Today the market participants and investors are now turning their eye to the release of US Gross Domestic Product (GDP) for the fourth quarter data today. The expectation is that the US economy grew 2.7% in Q4 with a stable GDP price index at around 3.9%. The GDP data is expected to provide meaningful trading opportunities later during the early North American session. U.S. weekly initial jobless claims and comments from Federal Reserve officials are also on the radar for today.

EQUITIES

The major indices of the US stock markets showed positive volatility and closed with significant gains on Wednesday on hopes for less aggressive rate hikes from the US central bank. However, investors and market participants kept a close eye on a slew of upcoming U.S. economic data that could influence the next Federal Reserve monetary policy meeting outcome.

OIL

Crude oil futures trades slightly lower Thursday morning while the overall momentum remained bullish throughout this week. During the previous session, the oil prices hit fresh weekly highs boosted by the decline in US crude inventory. The latest EIA data showed the US crude oil inventories fell by 7.5 million barrels last week, defying expectations for a 0.09-million-barrel rise.

CURRENCIES

In the currency market, the Canadian dollar is holding its impressive gains against the US dollar. the recent loonie’s strength is primarily due to a recovery in oil prices. The euro remains steady against the dollar and British pound and the further direction will depend on German inflation figures which will release later today. In the short-term perceptive, the immediate bias will remain bullish as long as prices exceed 1.0840.

GOLD

The precious metal traded flat on Thursday morning as investors await further cues from the US Fed regarding its rate hike trajectory, as the US Personal Consumption Expenditures (PCE) Price Index data will release on Friday. Meantime, today gold traders should closely monitor the release of US GDP and jobless claims numbers.

Economic Outlook

On the data front, US pending home sales increased for the 3rd consecutive month in February, with a 0.8% uptick from January, according to data from the National Association of Realtors.

Moving ahead today, the important events to watch:

Germany – CPI: 12:00

US – GDP: GMT – 12:30

Technical Outlook and Review

EURUSD: For today, the key resistance is located around 1.0880 a break above this level will confirm a possible move to 1.0910/30. On the downside, any meaningful pullback now seems to find some support near the 1.0840 and 1.0810 zones.



The important levels to watch for today: Support- 1.0840 and 1.0810 Resistance- 1.0880 and 1.0910.

GOLD: For today, the key support level is located at $1955. In case it breaks below this level, it will head towards the next support level which is located near 1944. On the upper side, If the metal regains strong upside momentum and presses back above 1974 then the key resistance area to watch is $1985.



The important levels to watch for today: Support- 1955 and 1944 Resistance- 1974 and 1985.

Quote of the day – Everybody has some information. The function of the markets is to aggregate that information, evaluate it, and get it incorporated into prices - Merton Miller.
Read more - https://gulfbrokers.com/en/daily-market-report-641

 

[syamfx2020]

The US Dollar Index, which measures the greenback’s value against the basket of six major currencies remain under pressure as investors remained cautious ahead of the highly anticipated US PCE price index - the Fed's preferred inflation gauge data, for more clues about the next moves of the Federal Reserve. A strong PCE inflation data might cause Fed officials to consider raising further its key interest rates in a move to curb inflation. The Core Personal Consumption Expenditures with the monthly reading estimated at 0.4%, while annually based is foreseen at 4.7%.

EQUITIES

US stock futures remain steady as investors are hoping for PCE data signalling that the Fed might avoid more rate hikes that might go too far in slowing the economy. Meanwhile, UK shares traded higher after the release of better-than-expected UK GDP data. Britain's economic growth was revised slightly higher to show an expansion of 0.1% in the final three months of 2022.

OIL

Crude oil prices traded with strong upside momentum throughout this week supported by the signs of a recovery in demand and the latest data showed U.S. crude inventories fell despite earlier expectations of a climb. The latest EIA report showed that US crude inventories unexpectedly declined by 7.489 million barrels last week. However, In the short term, investors should wait for a correction lower before looking for another continuation to the upside.

CURRENCIES

In the currency market, EURUSD reversed from the daily highs following the release of weaker-than-expected German employment and retail sales numbers. From a technical perspective, the euro is following a bullish trend formed with a series of higher highs and higher lows, which reinforces the positive outlook. Later today, traders will be waiting for ECB President Lagarde's Speech to seek more details about the future monetary policy.

GOLD

The precious metal still struggling to find strong upside momentum despite a weaker US dollar. The recent rebound stalled at the hourly resistance around $1985 per ounce and showed multiple failures in the lower time frames. Today gold traders across the globe waiting for the United States Personal Consumption Expenditures (PCE) inflation numbers to get a clear picture of the metal’s long-term direction.

Economic Outlook

On the data front, German Retail sales declined 1.3% month in February in real terms, after a revised 0.1% increase in January, German statistics office Destatis said Friday. The unemployment rate in Germany edged up to 5.6 percent in March 2023, the highest level since July 2021 and slightly above market expectations of 5.5 percent.

Moving ahead today, the important events to watch:

US – PCE price index: 12:30

US – Michigan consumer sentiment: GMT – 14:00

Technical Outlook and Review

EURUSD: For today, the first nearest support level is located at 1.0850. In case it breaks below this level, it will head towards the next support level which is located near 1.0800. On the upper side, 1.0910 will act as an immediate and strong hurdle while 1.0940 will be a critical resistance zone.



The important levels to watch for today: Support- 1.0840 and 1.0810 Resistance- 1.0880 and 1.0910.

GOLD: For today, if prices continue to trade below $1985 in the coming hours, the metal is likely to extend its decline toward the next support which stands at the $1968/63 level. Conversely, a confirmed break above the $1985 resistance can open the way for more advance in the direction of the $1990/95 mark.



The important levels to watch for today: Support- 1970 and 1958 Resistance- 1985 and 1991.

Quote of the day – “Short-term trading is very time-consuming. That is why even “successful” short-term traders can easily have negative real ROI.” - Robert Rolih.
Read more - https://gulfbrokers.com/en/daily-market-report-642

 

[syamfx2020]

Global markets start the new week on a positive note after OPEC+ unexpectedly announced crude output cuts that threaten to tighten the market.

The first week of a new month is expected to be a busy one, with the main focus on the highly anticipated US nonfarm payroll data for March, which will offer a crucial guide to the interest rate outlook. The March NFP data is expected to show that the economy added more than 238k jobs in March while the unemployment rate stays at 3.6%. Investors will also be keeping an eye on the RBA’s and RBNZ’S April monetary policy decision this week.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Levi’s and Conagra.

GOLD

Gold prices started the new week slightly lower after concerns over inflation sparked by the surge in oil prices and force Federal Reserve to keep interest rates higher for longer. Moving ahead, this week, the US jobs report will likely have a significant effect on gold and other precious metals because the employment data will hold more clues on the pace and size of future rate hikes.



For this week, $1948 is the immediate support level, followed by $1944. If the metal breaks below $1944, the slump will quickly extend toward the $1933/30 mark. On the flip side, the bullish breakout of $1990 is likely to push the metal into a new trading zone, which may offer further buying opportunities until $2009/30.

DOLLAR INDEX

The US dollar index which measures the greenback against major peers traded with a strong bearish tone for the entire last week, with some upside momentum seen only on Friday supported by hawkish comments from FED policymakers. During March, major currencies remained stronger than the US dollar throughout the month. This week the USD traders are likely to return their focus to fundamentals with the US ISM manufacturing and services PMI figures, Factory orders and employment report.



Technically the overall momentum remains bearish and the initial bias remains neutral for the upcoming week. The key resistance is located for the pair around 102.80, a break above this level will confirm a possible move to 103.30/40. On the downside, the immediate support will be the same as last week's low near 102, below which the slide could further get extended towards 101.60 and then 101.

EURUSD

Euro took a pause and ended slightly lower following the release of disappointing German macroeconomic data. However, the single currency has been largely supported in recent weeks by expectations the European Central Bank will continue with rate hikes. Moving ahead, this week, the economic data is limited this week to the manufacturing data from Germany and Eurozone. However, the week ahead is littered with key U.S. economic figures and any market disappointment over the outcome of them could potentially support the Euro.



For this week, considering heavy volatility there are chances the currency pair can rally back to above the previous month's resistance of 1.0930 and then the psycological resistance of 1.1000. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 1.0750 and 1.0710 if the pair breaks below 1.0800. The expected trading range for the euro this week is between 1.0700 support and 1.1050 resistance.

DOW JONES

Dow Jones finished the last week with solid gains. The upside momentum lifted after the softer-than-expected US inflation reading leads to a less hawkish FED regarding interest rates, even as banking conditions improve. According to FED fund futures, there is currently a 55% chance of a 25 basis point hike at the May 3 meeting. For Dow, the main attraction for this week is Investors waiting for the US ISM PMI and jobs data, which could trigger volatility in the market.



The technical scenario is bullish after the last few weeks of bullish sentiment. While considering the strong bullish momentum the index may find strong resistance above 33,650 this week. On the downside, good support is expected at the 32,900 area, while further down, demand is also expected around 32,500, which will act as the next area of support.

Check the detailed analysis here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-74

 

[syamfx2020]

Crude oil futures kicked off the second quarter of 2023 on a brighter note boosted by the surprise announcement by OPEC+ to cut production of more than 1 million barrels a day from May until the end of the year. Following the news, both West Texas Intermediate and Brent contracts bounced more than 6%.

OPEC+ largest producer Saudi Arabia said Sunday it was cutting production by 500,000 barrels per day from May until the end of the year. Iraq, Oman, Kuwait, the United Arab Emirates, and Algeria also plan to reduce production. The UAE said it would cut production by 144,000 barrels per day, Kuwait announced a cut of 128,000 barrels per day and Iraq is cutting 210,000 barrels.

The Saudi Energy Ministry described the move as a “precautionary measure” aimed at stabilizing the oil market. During the last month, oil prices plunged to fresh 15-month lows in response to the banking crisis. Russia said that it was in the interests of the world energy industry to support prices for oil and oil products, a day after Russia announced it would extend a 500,000 barrels per day output cut until the end of the year.

Meantime, the US administration today said that the production cuts announced by members of the OPEC+ coalition were "not advisable". "We don't think cuts are advisable at this moment given market uncertainty – and we've made that clear." - a spokesman for the National Security Council (NSC) said. “We will continue to work with all producers and consumers to ensure energy markets support economic growth and lower prices for American consumers." – he added.

Considering the recent spike, oil investors should closely monitor this week the release of weekly crude inventory reports, the global central bank's actions, and the US jobs report on Friday. However, for oil markets, in the near term, the outlook remains favourable as speculation mounts that the Federal Reserve will hit the pause button on interest rate hikes in 2019.

 

[syamfx2020]

The Reserve Bank of Australia decided to leave the cash rate target unchanged at 3.6 per cent during its April meeting, after delivering a series of ten consecutive increases since last year. The Australian dollar slides following the announcement.

"The decision to hold interest rates on hold this month gives the Board more time to assess the state of the economy and the outlook in an environment of significant uncertainty," – the central bank said.

RBA governor Phil Lowe said that further rate hikes could be on the way as the central bank looks to break the back of sky-high inflation over 2023. “The board recognises that monetary policy operates with a lag and that the full effect of this substantial increase in interest rates is yet to be felt,” he added.

EQUITIES

Wall Street managed to close higher for the first trading day of this month despite the release of weak US economic data. However, investors should wait for the result of the US employment on Friday to get a clear picture of the market's long-term direction.

OIL

Crude oil futures were mostly steady so far today after reaching the highest levels in over seven weeks boosted by the surprise announcement by OPEC+ to cut production of more than 1 million barrels a day from May until the end of the year. The key data for the oil prices this week will once again be the weekly crude inventory report, movement of the US dollar and FED policymaker's comments.

CURRENCIES

In the currency market, the U.S. Dollar Currency Index, which tracks the greenback against six major currencies plunges to a new 8-week low. The strong bearish sentiment fuels after the US ISM manufacturing index fell to a fresh post-pandemic low. While the EURUSD hit a fresh 2-month high of 1.0937 supported by hawkish comments from the ECB policymakers. ECB Governing Council member Robert Holzmann said another 50bp hike in interest rates was “still on the cards” if the recent banking turmoil did not worsen.

GOLD

The precious metal struggling to extend the bullish momentum despite the weaker dollar. The metal retreats from the early session highs and trades now near $1980. Moving ahead to the North American session, the gold traders should closely monitor the release of the US February JOLTS job openings report alongside factory orders data.

Economic Outlook

On the data front, the latest ISM manufacturing PMI report showed that US manufacturing activity and price pressures are rapidly easing. The US manufacturing index fell further into contractionary territory with a reading of 46.3 compared to the 47.5 estimated, down from 47.7 in February.

Moving ahead today, the important events to watch:

US – Factory orders: 14:00

US – JOLTS job openings: GMT – 14:00

Technical Outlook and Review

EURUSD: For today, the resistance for the pair is around 1.0940, any break over targets 1.0970/80. On the downside, any meaningful pullback now seems to find some support near the 1.0900 zones, below which the slide could further get extended towards the 1.0870/50 region.



The important levels to watch for today: Support- 1.0900 and 1.0870 Resistance- 1.0940 and 1.0970.

GOLD: For gold, the first nearest support level is located at 1975. In case it breaks below this level, it will head towards the next support level which is located near 1968. On the upside, 1986 will act as an immediate and strong hurdle while 1991 will be a critical resistance zone because, above this, bulls are likely to dominate.



The important levels to watch for today: Support- 1975 and 1968 Resistance- 1986 and 1991.

Quote of the day – My experience with novice traders is that they trade three to five times too big. They are taking 5 to 10 percent risks on a trade when they should be taking 1 to 2 percent risks - Bruce Kovner.
Read more - https://gulfbrokers.com/en/daily-market-report-643

 

[syamfx2020]

The price for cryptocurrency Dogecoin (DOGE) slightly reversed from the fresh weekly highs but the current price action signals suggest bulls remain optimistic. Dogecoin, the popular cryptocurrency bounced more than 30% on Monday after the traditional bird logo on Twitter was replaced with a Shiba Inu dog, a symbol often associated with the coin. This change has had a significant impact on the cryptocurrency market.

Dogecoin is a peer-to-peer cryptocurrency that was created in 2013 by software programmers Billy Markus and Jackson Palmer. This cryptocurrency has become a hot topic in recent months due to its growing popularity and the coin has been actively supported by Twitter CEO Elon Musk in the past.

EQUITIES

European shares opened higher following the release of robust German industrial orders data. The data showed factory orders in Germany increased by 4.8% in February of 2023, compared to the forecasts of a 0.3% gain. While the US stock futures remain under pressure after the latest US macro-economic data signalled further signs of a slowing economy.

OIL

Crude oil futures trade flat after testing the multi-month highs in the previous trading session. Oil price bulls catch their breath as investors refrain from placing aggressive bets ahead of the announcement of US NFP data. While the latest API crude inventory data showed the US crude inventories fell 4.346 million barrels again last week, with analysts expecting a smaller 1.8 million barrel draw.

CURRENCIES

In the currency market, Euro remains steady against the US dollar despite the release of weaker-than-expected Eurozone and German service PMI figures. On the other hand, the British Pound is losing strength and the pair continues to struggle to extend the bullish momentum after reaching a fresh 10-month high of 1.2520 on Tuesday.

GOLD

The safe-haven metal enjoying a bullish rally. The metal jumped more than 35$ in the last 24 hours after the JOLTS job openings miss expectations and fell below 10 million for the first time in nearly 2 years. The metal will extend the upside move today if the ADP Non-Farm Employment Change and Services PMI fail to deliver strong numbers.

Economic Outlook

On the data front, the Reserve Bank of New Zealand increased interest rates by 50 basis points (bps) to a more than 14-year high of 5.25 per cent. “The Committee agreed the OCR needs to increase, as previously indicated, to return inflation to the 1-3 percent target range over the medium term. Inflation is still too high and persistent, and employment is beyond its maximum sustainable level.” RBNZ April Policy Statement.

Moving ahead today, the important events to watch:

US – ADP employment report: 12:15

US – ISM services PMI: GMT – 14:00

Technical Outlook and Review

EURUSD: For today, the key resistance is located for the pair around 1.0970, a break above this level will confirm a possible move to 1.1000 and 1.1030. On the downside, any meaningful pullback now seems to find some support near the 1.0930 and 1.0900 zones.



The important levels to watch for today: Support- 1.0930 and 1.0900 Resistance- 1.0970 and 1.1000.

GOLD: For today, as long as the metal is trading above $2000, an upside rally is likely to continue up to $2035/50. On the downside, the first nearest support level is located in $2018. In case it breaks below this level, it will head towards the next support level which is located near $2014 and $2010.



The important levels to watch for today: Support- 2018 and 2010 Resistance- 2035 and 2050.

Quote of the day – “As time goes on, I get more and more convinced that the right method of investment is to put fairly large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes.” — J.M. Keynes.
Read more - https://gulfbrokers.com/en/daily-market-report-644

 

[syamfx2020]

Except for exchanges in China & Japan and forex markets, all other markets including the US, UK and Europe will be closed on Friday, April 07, in observance of Good Friday. Due to these holidays, the market trading hours for a number of tradable products will be temporarily altered and the trading action is likely to turn subdued later today. But the important reminder is the March employment report will be released Friday.

EQUITIES

US stock futures recovered from the previous session's lows. While the upside momentum is limited as investors took a cautious stance ahead of the most anticipated US NFP report. However, with weak US economic data sparking worries of a recession, tomorrow’s employment report will be closely watched for fresh insight into the strength of the U.S. economic recovery.

OIL

Crude oil futures trades slightly lower despite the industry data showing a surprise drop in US crude inventories, as the fears of a slowdown in the U.S. economy have pressured crude oil prices. While the EIA crude inventory data showed the US crude stockpiles dropped 3.7 million barrels last week, about 1.5 million barrels more than consensus.

CURRENCIES

In the currency market, the safe-haven dollar slightly rebounded on Wednesday after the release of disappointing manufacturing data from the US and the eurozone, which renewed worries about the global economic slowdown. Meantime, Cleveland Fed President Loretta Mester said that interest rates in the US will keep rising despite weakness in the economy. She also suggested that rates will remain above the 5% mark for longer.

GOLD

Gold price holding the weekly gains supported by the sharp decline in the US dollar. The safe-haven metal received additional buying pressure on Wednesday after the release of US ADP employment data. Moving ahead to the North American session, gold traders should closely monitor the release of US jobless claims data.

Economic Outlook

On the data front, the latest US economic data showed the ISM Services index also showed slower-than-expected growth in March. The ISM services purchasing managers index declined to 51.2 in March, compared to the market expectation of 54.0. On the other hand, the U.S. ADP jobs report said the economy added 145,000 private jobs in March, below the 200,000 expected.

Moving ahead today, the important events to watch:

US – Jobless claims: 12:30

Canada – Employment Report: GMT – 12:30

Technical Outlook and Review

EURUSD: For today as long as the currency pair trades above 1.0880 levels, the medium-term uptrend will remain in place. On the downside, 1.0880 is the immediate support level, followed by 1.0850. Further selling pressure will intensify only if the pair break below 1.0840 levels.



The important levels to watch for today: Support- 1.0880 and 1.0850 Resistance- 1.0930 and 1.0950.

GOLD: For today, If the upside momentum continues then the next upside level is to watch at $2025 and $2032. On the downside, any meaningful pullback now seems to find some support near the $2012 zones, below which the slide could further get extended towards the $2008 and $2000 regions.



The important levels to watch for today: Support- 2008 and 2000 Resistance- 2025 and 2032.

Quote of the day – "To win in the markets, we need to master three essential components of trading: Sound psychology, a logical trading system, and an effective risk management plan.”
Read more - https://gulfbrokers.com/en/daily-market-report-645