Daily Market Report by GulfBrokers 2020-2021

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The Currency pair formed inverted head and shoulder on 4hr. So if the pair holds above 0.9520 we may see a pullback to 0.9590 then 0.9630/60. On the flip side break below 0.9520, the next level to watch 0.95/0.9480.

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One of the most anticipated IPO of this year Coinbase the major cryptocurrency exchange is launching an initial public offering on 14 April 2021 through a direct listing on the NASDAQ exchange under the ticker symbol "COIN". The company planning to offer 115 million shares at around $200 per share. Coinbase has opted for a direct listing over a traditional IPO, a direct listing in which existing shares are released for public trading.

The company had previously scheduled its IPO to March but set aside those plans after it was ordered by the CFTC to pay a civil penalty of $6.5 million in mid-March to settle charges for reporting false information over its transactions.

"We proactively engaged with the CFTC throughout their investigation, and we believe that our conversations were constructive and contributed to an outcome that is satisfactory for both parties." the company said recently.

WHAT IS COINBASE & HOW DOES IT WORK

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Coinbase founded in 2012 and it is the largest regulated crypto exchange platform in the U.S. Coinbase provides users with a simple and safe way to buy and sell cryptocurrencies on its platform. It has over 43 million users worldwide and has transacted more than $456 billion to date with $90 billion in assets on the platform. The company also offers a Coinbase e-commerce platform, which provides online retailers with software that lets them accept cryptocurrency payments in a fully decentralized way.


FUNDAMENTAL ANALYSIS

The company’s strong financial performance in recent years supported by the growing popularity of cryptocurrency. Bitcoin already has more than doubled in the last six months. Recently, Coinbase reported revenue of $1.8 billion in the last quarter. The revenue soared more than 800% year-on-year in the first quarter of this year. In 2020, the company revenue increased to 1.3 billion from $534 million in 2019. The company

2 BIGGEST RISKS TO COINBASE STOCK

  • Revenue spikes when the price of crypto runs up and declines sharply when trading activity falters. So as simple If the price of cryptocurrencies falls it may impact the revenue of the firm as well.
  • Crypto regulation has increased significantly in recent months. Coinbase has significant regulatory risk from CTFC.
CONCLUSION

Compare to other Crypto based firms listed on the stock exchange Coinbase considered a stable equity investment. On the other hand, this is an opportunity for investors who want to gain exposure to the crypto sector without directly holding cryptocurrency.

“The IPO market gives the outward appearance of a rebound but that is a false sense of confidence. The market is firming up and there are definitely upgrades but not all the signs are clear”. —David Menlow.

Read more here- https://gulfbrokers.com/en/ipo-of-the-month-coinbase-the-biggest-crypto-exchange-in-us
 
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February Eurozone retail sales reported stronger than expected. The sales rose 3.0% percent after a 5.2 percent slump in January and compared with market expectations of 1.5 percent growth. The EURUSD bounced back above 1.1900 following the strong retail sales data.

EQUITIES

US stock futures and European shares started the new week on a positive note boosted by strong macro-economic data and the positive comments from Fed Chair Jerome Powell. "We feel like we're at a place where the economy's about to start growing much more quickly and job creation coming in much more quickly," Powell said.

OIL

Crude oil prices recovered from the early session losses. This week the investors continue to follow the oil inventory report from the API and EIA and the US inflation data.

CURRENCIES

In the currency market, the British pound rebounded after in the UK the pubs, gyms, and all reopening from Monday in some capacity. While the US dollar Index bearish momentum continues for the second consecutive week.

GOLD

Gold price trading steady above $1740 on Monday. On Friday, the safe-haven metal retreated from the fresh monthly high after better-than-expected US PPI data and the strong rebound in US Treasury yields.

Economic Outlook

This week the main highlights of the economic calendar will be the release of the US banks earnings, Inflation data from the US, Germany, and Eurozone and the RBNZ interest rate decision.

Coronavirus update:

Worldwide, more than 136.1 million people have been confirmed infected and more than 2.9 million have died. The United States has confirmed over 31 million cases and has had more than 562,000 deaths from COVID-19, the highest totals in the world. Meanwhile, Covid cases continue to fall in the UK with 1730 new daily cases on Sunday, down 25% from the previous week

Technical Outlook

GBP/USD:
The British pound once again found strong buyers near the previous week low 1.3670. At the time of writing, the currency pair trades above 1.3760.

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The important levels to watch for today: Support- 1.3710 and 1.3670 Resistance- 1.3780 and 1.3810.

GOLD: The yellow metal trading below the short-term resistance level $1745 supported by $1730. Today, gold is again expected to face resistance around $1750 along with support around $1730 and $1720.

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The important levels to watch for today: Support- 1735 and 1730 Resistance- 1745 and 1750.

Quote of the day: “In many ways, the stock market is like the weather in that if you don’t like the current conditions all you have to do is wait a while.” – Low Simpson.

Read more- https://gulfbrokers.com/en/daily-market-report-283
 
This week the main highlights of the economic calendar will be the release of the US banks earnings, inflation data from the US, Germany, and Eurozone and the RBNZ interest rate decision.
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UK GDP increased by 0.4% following a 2.2% decline in January while the figures missed the market estimates of 0.6%. On the other hand, UK manufacturing and industrial production numbers came better-than-expected. The British pound rose to a fresh session high of 1.3764 after the release of economic data.

EQUITIES


US stock futures and European stocks trading steady ahead of the US inflation data. Meanwhile, Chinese shares ended mixed after weaker-than-expected Chinese Exports and trade balance data.

OIL

Crude oil prices slightly retreated from the previous session high. On Monday, the oil prices bounced after Houthi rebels once again launched missile attacks on Saudi Arabian oil facilities.

CURRENCIES

In the currency market, the New Zealand dollar trading lower ahead of the RBNZ interest rate decision. The Euro hovers near the psychological level of 1.19 while the Dollar Index struggling to find the upside momentum.

GOLD

The safe-haven metal trading lower for the second consecutive day after the Federal Reserve signaled the U.S. economy may soon rebound as vaccinations accelerate. The United States has fully vaccinated more than 70 million people.

Economic Outlook

On the data front, China exports came at 30.6% in March, slower than the forecast of 35.5% while imports increased 38.1%, better-than-expected growth of 23.3%

Moving ahead to the North American session, the investors and traders will closely monitor the US inflation figures which is set to be released at 12.30 GMT.


Coronavirus update:

Worldwide, more than 136.2 million people have been confirmed infected and more than 2.9 million have died. The United States has confirmed over 31 million cases and has had more than 562,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

DOLLAR INDEX:
The currency pair trading unchanged ahead of US CPI data. While the overall momentum remains bearish.

DXY


The important levels to watch for today: Support- 92 and 91.60 Resistance- 92.30 and 92.50.



GOLD: The yellow metal trading weaker below $1730 supported by $1720. Today, gold is again expected to face resistance around $1736 along with support around $1720 and $1714.

gold neww


The important levels to watch for today: Support- 1720 and 1714 Resistance- 1730 and 1736.

Quote of the day: “Wall Street sells stocks and bonds, but what it really peddles is hope.” - Jason Zweig.

Read more- https://gulfbrokers.com/en/daily-market-report-284
 
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The computer graphics giant NVIDIA (NASDAQ: NVDA) shares climb to near the all-time high on Monday after the company lifts the Q1 revenue forecast.

NVIDIA also introduced the first CPU for data centres. Which will deliver 10 times the performance of today’s fastest servers.

NVDA stock closed 5.62% higher on Monday.
 
The New Zealand dollar climbed to a new fresh week high of 0.7115 on Wednesday after the RBNZ meeting. The central bank left the key benchmark rate unchanged at 0.25%, reassuring that it is ready to lower rates further if needed. RBNZ Monetary Policy Committee noted the continued uncertainty in the global economy amid still strong epidemiological risks and existing restrictions on tourism and supply.

EQUITIES

Wall Street ended mixed on Tuesday after US FDA’s advisory on halting coronavirus vaccinations with the Johnson & Johnson vaccine. Meanwhile, Nasdaq 100 index reached a new record high supported by the tech stocks rally.

Today the investors are eagerly waiting for the listing of the most anticipated IPO of this year Coinbase on the Nasdaq exchange under the ticker symbol "COIN".

OIL

Crude oil prices trading higher on Wednesday boosted by better-than-expected API inventory data and OPEC monthly report. OPEC monthly report showed an improved world oil demand outlook. According to the latest API report, the crude inventories in the US fell by 3.608 million barrels in the week ended April 9th of 2021.

CURRENCIES

In the currency market, the EURUSD trading steady above 1.1960 ahead of ECB President Lagarde's speech. While the British pound rebounded back to above 1.38 after the pair once again found strong buyers below 1.3700.

GOLD

The safe-haven metal climb to a fresh session high of $1748 on concerns of imminent Fed tapering after a spike in March U.S. consumer inflation.

Economic Outlook

On the data front, US inflation increased by 2.6% in March from 1.7% in Feb. On the other hand, the Investor sentiment in Germany dropped in April, falling to 70.6 from the last reading of 76.6.

Moving ahead to the North American session, the investors and traders will closely monitor the speech from ECB President Christine Lagarde and Fed Chair Jerome Powell.

Coronavirus update:

Worldwide, more than 136.2 million people have been confirmed infected and more than 2.9 million have died. The United States has confirmed over 31 million cases and has had more than 562,000 deaths from COVID-19, the highest totals in the world. India reports 161,736 new cases for the past 24 hours, slightly down from the record 168,912 of the previous day.

Technical Outlook

EUR/USD:
The currency pair surged to a fresh session high of 1.1972 after the US dollar index break below the 92 areas.

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The important levels to watch for today: Support- 1.1930 and 1.1900 Resistance- 1.1980 and 1.2010.

GOLD: The yellow metal rebounded from the previous session low after the US inflation data. Overall, momentum remains bullish throughout the European session.

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The important levels to watch for today: Support- 1736 and 1730 Resistance- 1750 and 1760.

Quote of the day: Limit your size in any position so that fear does not become the prevailing instinct guiding your judgment - Joe Vidich.

Read more- https://gulfbrokers.com/en/daily-market-report-285
 
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Bitcoin jump above $64,000 level for the first time on Wednesday ahead of the listing of Coinbase IPO (NASDAQ: COIN) the largest US trading platform for cryptocurrencies. Coinbase stock ended its first day at $328 per share. On Tuesday, the Nasdaq set a reference price of $250 a share but the $COIN opened at $381 per share. Coinbase shares jump to near $430 area before closing at $328.28.

“Regulation is one of the biggest risks when it comes to the cryptocurrency business. It’s right up there with cybersecurity.” - Coinbase CEO Brian Armstrong said.


EQUITIES

Wall Street ended mixed on Wednesday while the Dow Jones closed at the positive territory supported by strong earnings results from Goldman Sachs and JP Morgan.

On the US earnings front, Citi (NYSE: C), Bank of America (NYSE: BAC) and PEPSI (NASDAQ: PEP) reporting earnings today before the market opens.

OIL

Crude oil prices bounced to fresh weekly highs boosted by better-than-expected API and EIA inventory data. The EIA data showed the oil inventories fell by 5.889 million barrels in the April 9th week, following a 3.522 million decline in the previous period.

CURRENCIES

In the currency market, the US Dollar hovers near the monthly low ahead of US retail sales data. The Index expected to be extra volatile after the release of monthly Retail Sales figures. On the other hand, the Australian dollar climbs to a fresh weekly high following the release of upbeat employment data.

GOLD

The safe-haven metal rebounded back to above $1740 supported by the weaker US dollar and recent weakness in 10-year bond yields.

Economic Outlook

On the data front, the employment data from the Australian Bureau of Statistics (ABS) showed the unemployment rate dropped to 5.6%, down from 5.8%, better than the expectation of 5.7%. Meanwhile, the number of employed people increased by 70.7K in March, which is less than the 88.7K increase seen in

February.

On Wednesday, US Fed Chair Powell said that the central bank will first taper down its monthly bond purchase program before making any changes to interest rates.

Moving ahead today, the important events to watch:

US – Retail sales: GMT – 12.30

US – Jobless claims: GMT – 12.30

US – Philly Fed Manufacturing Index: GMT – 12.30

Coronavirus update:

Worldwide, more than 136.4 million people have been confirmed infected and more than 2.9 million have died. The United States has confirmed over 31.26 million cases and has had more than 562,511 deaths from COVID-19, the highest totals in the world. The number of new coronavirus cases in India hit a record daily high with over 200,000 infections being reported in a day.

Technical Outlook

DOLLAR INDEX:
The US dollar trading near the short-term support area 91.40/50. Today’s US economic data would be critical in determining whether the Index breaks below the support area or gain some upside momentum.

DXY


The important levels to watch for today: Support- 91.30 and 91.00 Resistance- 92.00 and 92.40.

GOLD: The yellow metal trading steady above $1740 ahead of US retail sales data. Overall, the momentum remains bullish throughout the European session.

gold neww


The important levels to watch for today: Support- 1740 and 1732 Resistance- 1750 and 1762.

Quote of the day: “In this business, if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.” - Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-286
 
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Gold price finally broke the previous month high of $1760 after the 10-year US Treasury yields dropped to the fresh monthly low. If the bullish momentum continues the next key upside levels to watch $1780 and $1800.

EQUITIES

Chinese shares traded higher following the mixed Chinese economic data. While Wall Street ended higher on Thursday supported by strong US macro-economic data and the robust US banks financial results.

On the US earnings front, PNC Financial Services (NYSE: PNC) and Morgan Stanley (NYSE: MS) reporting earnings today before the market opens.

OIL

Crude oil prices extend higher on Friday boosted by the Oil inventory data and the stock market rally. Overall, the momentum remains bullish throughout this week.

CURRENCIES

In the currency market, the US Dollar rebounded and slightly closed higher on Thursday following the upbeat US retail sales and jobless claims data. Meanwhile, the British pound trading lower against the Euro drove by amid growing concerns about the AstraZeneca COVID-19 vaccine.

GOLD

During the European session, the safe-haven metal trading unchanged after hitting the fresh weekly high of $1769 on Thursday.

Economic Outlook

On the data front, China released the latest GDP data. GDP increased by 18.3% YOY and 0.6% on a quarterly. While both the figures missed the consensus estimate. On the other hand, the retail sales rose by 34.2% in March after rising by 33.8% in the previous month.

Moving ahead today, the important events to watch:

US – Building permits: GMT – 12.30

US – Michigan consumer sentiment: GMT – 14.00

Coronavirus update:

Worldwide, more than 138 million people have been confirmed infected and more than 2.98 million have died. The United States has confirmed over 31.26 million cases and has had more than 562,511 deaths from COVID-19, the highest totals in the world.

Technical Outlook

DOLLAR INDEX:
The US dollar index slightly rebounded from the key support area 91.50. Moving ahead to the North American session, the USD traders should closely monitor the release of U.S. consumer sentiment figures for April.

DXY


The important levels to watch for today: Support- 91.50 and 91.30 Resistance- 91.85 and 92.10.

GOLD: The yellow metal trading steady above $1760. Any break above yesterday’s high $1769 the next upside to watching $1778 and $1984. On the flip side, the immediate support at $1760 followed by $1755.

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The important levels to watch for today: Support- 1760 and 1755 Resistance- 1772 and 1780.

Quote of the day: From a strictly economic point of view, buying gold in a major inflation and holding it probably presents the least risk of capital loss of any investment or speculation - Henry Hazlitt.

Read more- https://gulfbrokers.com/en/daily-market-report-287
 
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