Daily Market Report by GulfBrokers 2020-2021

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The beverage and snack giant Pepsi (NASDAQ: PEP) is scheduled to announce second-quarter financial results on Tuesday before the bell. Consensus forecast EPS of $1.53 on revenue of $17.98 Billion. Pepsi stock reached a new all-time high of $150.70 last week, the bullish rally supported by strong demand for sports drinks.

EQUITIES

Asian stocks traded higher on Monday following the release of upbeat Chinese trade balance data. The data showed China’s June trade surplus increased by $51.50 billion and June Exports grew by 32.20%. Meanwhile, the US stock futures trading unchanged ahead of the release of US banks Q2 financial results.

OIL

Crude oil prices recovered from the previous session losses ahead of US API inventory data. However, the overall momentum remains mixed as the Oil traders continue to assess the spread of the Delta coronavirus variant and fresh updates from OPEC+.

CURRENCIES

In the currency market, the Euro slips against the dollar on Tuesday after the release of German inflation data. On the other hand, the Asian currencies like the Australian dollar and New Zealand dollar climbed to a fresh session high boosted by strong Chinese economic data.

GOLD

The Safe-haven metal trading steady above $1800 on Tuesday ahead of US inflation data, which is set to be released at 12.30 GMT.

Economic Outlook

On the data front, Germany released the June Inflation figures. The inflation dropped to 0.4% in June from a 0.5% increase in May.

Coronavirus update:

Worldwide, more than 187 million people have been confirmed infected and more than 4 million have died. The United States has confirmed over 33.8 million cases and has had more than 607,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

GBPUSD:
The British pound retreat back to near the previous session lows after the Bank of England released a mixed financial stability report on Tuesday morning.

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The important levels to watch for today: Support- 1.3840 and 1.3800 Resistance- 1.3900 and 1.3940.

GOLD: The yellow metal hovers near the $1810 area. The near-term resistance is around $1820, any break over targets $1825/$1832. On the downside, the first immediate support around $1800 followed by $1795/90.

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The important levels to watch for today: Support- 1800 and 1790 Resistance- 1820 and 1830.

Quote of the day: Investing money is the process of committing resources in a strategic way to accomplish a specific objective. – Alan Gotthardt.

Read more- https://gulfbrokers.com/en/daily-market-report-347
 
GBPUSD hovers near the previous session low after the release of the BOE financial stability report.

If the bearish momentum continues the next downside levels to watch the 1.3810/00 and 1.3780. On the flip side, the 1.3900 remains the crucial resistance area to watch.
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US Airline firm Delta Airlines (NYSE: DAL) is scheduled to announce Q2 earnings results on Wednesday before the bell. Consensus forecast EPS of -$1.40 on revenue of $6.20 Billion. During the first quarter, the airline reported a net loss of 1.2 billion.

Delta stock fell another 3% on Tuesday. But considering the selling pressure, the stock may rebound if the company report better-than-expected second-quarter financial results or if the results disappoint then the stock will drop further down.

EQUITIES

Wall Street ended lower on Tuesday as investors remain concerned about the higher inflation. Today the traders and investors waiting for the Fed Chair’s testimony to know his view on the inflation pressures while previously Powell has repeatedly stressed that higher inflation will be temporary. On Tuesday, the latest US annual inflation data showed the consumer price index jumped 5.4%, well above the expectations of 5%.

OIL

Crude Oil prices slightly retreat from the previous session highs following the release of API inventory data. The data showed that the oil inventories in the US dropped by 4.079 million barrels in the July 9th week, compared with the market consensus of a 4.333 million fall.

CURRENCIES

In the currency market, the New Zealand dollar rebounded back to above 0.7000 after the RBNZ meeting. Meanwhile, the Canadian dollar tumbles ahead of the Bank of Canada interest rate decision and policy statement which is set to be announced at 14.00 GMT. The central bank is generally expected to be holding interest rates unchanged at 0.25%.

GOLD

The Safe-haven metal trading sideways ahead of the busy North American session. Overall, the momentum remains bullish as the metal stays above the $1800 area.

Economic Outlook

On the data front, the UK Annual inflation rate increased to 2.5% in June of 2021 from 2.1% in May and the monthly figures showed that the CPI came at +0.5% in June vs. +0.2% expectations.

On Wednesday during the Asian session, the Reserve bank of New Zealand kept its official cash rate at 0.25% but cut short a NZ$100 billion bond-buying program.

Moving ahead today, the important events to watch:

US – PPI: GMT – 12.30

CANADA – BOC interest rate decision and statement: GMT – 14.00

US – EIA crude inventories: GMT – 14.30

Coronavirus update:

Worldwide, more than 187.4 million people have been confirmed infected and more than 4.04 million have died. The United States has confirmed over 33.8 million cases and has had more than 607,000 deaths from COVID-19, the highest totals in the world.
Technical Outlook

EURUSD:
The currency pair plunged to a fresh monthly low of 1.1770 on Tuesday. Any break below 1.1770 will open the doors to 1.1740 and 1.1720. On the upper side, the immediate resistance at 1.1810/40.
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The important levels to watch for today: Support- 1.1770 and 1.1740 Resistance- 1.1810 and 1.1840.

GOLD: The yellow metal trading above $1810 area during the European session, if the bullish momentum continues the next upside levels to watch the $1815 and $1820 zone. On the flip side, the immediate support at $1800 followed by $1795.
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The important levels to watch for today: Support- 1800 and 1795 Resistance- 1820 and 1830.

Quote of the day: “Investing puts money to work. The only reason to save money is to invest it.” — Grant Cardone.


Read more here- https://gulfbrokers.com/en/daily-market-report-348
 
The Dow Jones Index struggling to close above 35k. On the downside, any meaningful pullback now seems to find some support near the 34,550/00 zones, below which the slide could further get extended towards the 34.350/100 regions.
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Gold price rose to a fresh monthly high of $1832 on Thursday. The recent bullish move supported by the renewed coronavirus surge in many parts of the world and a sharp rise in U.S inflation. In the short-term If the bullish momentum continues the next upside levels to watch $1836/40.

EQUITIES

Asian stocks traded mixed following the release of mixed Chinese economic data. On the other hand, Wall Street ended slightly lower on Wednesday driven by virus variant worries and higher inflation.

OIL

Crude Oil prices extend losses on Thursday after some reports said the U.A.E. has said no deal has been reached with OPEC+ producers and that talks are ongoing and weaker-than-expected US crude inventory data. On Wednesday, the EIA data showed the oil inventories dropped by 7.897 million barrels in the July 9th week.

CURRENCIES

In the currency market, the British pound slips to a fresh session low of 1.3820 after the release of a weak UK unemployment report. The UK unemployment rate increased by 4.8% in May, compared to market forecasts of 4.7%

GOLD

The Safe-haven metal trading steady above $1830 on Thursday. Overall, the momentum remains bullish throughout the Asian session.

Economic Outlook

On the data front, the Chinese GDP rose by 1.3% from the first to the second quarter. Compared to the median estimate of 1.2%. While the Industrial production in China increased 8.3% in June of 2021, compared to the market forecasts of a 7.8% rise.

Moving ahead today, the important events to watch:

US – Jobless claims: GMT – 12.30

US – Philly FED Manufacturing Index: GMT – 12.30

Coronavirus update:

Worldwide, more than 188 million people have been confirmed infected and more than 4.05 million have died. The United States has confirmed over 33.8 million cases and has had more than 608,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD:
Technically the overall trend still looks bearish after the last few week's selling pressure. If the pair breaks and closes below 1.1770 the next important support at 1.1740/10. On the other upper side, the next immediate resistance around 1.1890.

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The important levels to watch for today: Support- 1.1810 and 1.1770 Resistance- 1.1860 and 1.1890.

GOLD: The yellow metal trading near the resistance area $1832/34. Any break and close above this level will open the doors to $1840/45. On the flip side, the immediate support around $1820.

gold neww


The important levels to watch for today: Support- 1822 and 1815 Resistance- 1836 and 1840.

Quote of the day: “No other commodity enjoys as much universal acceptability and marketability as gold.” –Hans F. Sennholz.

Read more- https://gulfbrokers.com/en/daily-market-report-349
 
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Gold price trading slightly lower ahead of US retail sales report. The metal needs a clear break of the previous session high 1834 to move further upside 1840/45. On the flip side, a breakdown through 1818/15 would negate that bias and suggest a test of the 1810/00 support region.
 
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Worldwide, more than 188.3 million people have been confirmed infected and more than 4.06 million have died. The United States has confirmed over 33.9 million cases and has had more than 608,000 deaths from COVID-19, the highest totals in the world.

On Thursday, the World Health Organization (WHO) warned "Unfortunately...we are now in the early stages of a third wave”. Coronavirus cases increased by 10% last week to nearly 3 million, with the highest numbers recorded in Brazil, India, Indonesia, and Britain, WHO said.

"The Delta variant is present in more than 111 countries, and if it isn't already, we expect it to become the main COVID-19 strain circulating worldwide soon," – WHO Director-General Tedros Adhanom Ghebreyesus.

Read more here - https://gulfbrokers.com/en/daily-market-report-350
 
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GBPUSD hits a fresh 5 month low of 1.3607. On the downside, the next key support is near 1.36/1.3580. While on a weekly, if the GBP holds above 1.3540 there are chances the currency pair eventually rise back to above 1.3700.
 
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