Daily Market Report by GulfBrokers 2020-2021

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Good collection. In general, stocks of companies that help you do stuff from your home and ones that are healthcare-related did pretty well, and stocks of industries related to travel were affected badly. I think it is now a good time to look into the stocks that have declined as there is starting to be hope for recovery.
 
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Bitcoin (BTC) hits a new all-time high of $34000 over the weekend. The cryptocurrency rose more than 300% in 2020 and rallied by 50% in December alone. Bitcoin has more than tripled its value since 2020.

EQUITIES

Global stocks jumped higher on the first trading day of the year. Meanwhile, several Chinese stocks dropped on Monday after the New York Stock Exchange's announcement on Thursday that it will delist China Telecom, China Mobile, and China Unicom Hong Kong.

OIL

Crude oil prices surged to fresh session highs on Monday ahead of OPEC virtual meeting to decide whether to add as much as 500,000 barrels a day to production.

CURRENCIES

In the currency market, the commodity currencies the Australian dollar and New Zealand dollar climbed to 32-month highs on Monday supported by the Gold and Oil price rally.

GOLD

Gold climbed more than 1% to the highest level in almost two months as global COVID-19 cases spiked, and several countries pushed for more lockdowns.

Economic Outlook

On the data front, the China Caixin/Markit manufacturing PMI fell to 53.0 in December from 54.9 in November.

This week the investors will closely monitor Tuesday's Georgia runoff elections that will decide the control of the U.S. Senate, U.S. Federal Reserve's minutes of the latest meeting on Wednesday and U.S. unemployment report for December is due Friday.

Coronavirus update:

Worldwide infections climbed above 85 million. In the U.S., there are about 20.5 million confirmed cases of coronavirus and more than 350,000 COVID-19 deaths. Germany is due to extend its nationwide lockdown until the end of January, with more than 10,000 infections reported on Sunday.

Technical Outlook

EUR/USD:
The currency pair trading steady above 1.2250 on Monday. The important levels to watch this week 1.2200 and 1.2310.

eurusd


The important levels to watch for today: Support- 1.2240 and 1.2210 Resistance- 1.2275 and 1.2310.

GOLD: The gold price opened gap up on Monday. Overall momentum remained bullish throughout the Asian session.

gold neww


The important levels to watch for today: Support- 1910 and 1900 Resistance- 1926 and 1932.

Quote of the day: Welcome responsibilities as it will bring in more chances of being successful and prosperous in this New Year.

Read more- https://gulfbrokers.com/en/daily-market-report-230
 
EURUSD
Support: 1.2200 and 1.2150 Resistance: 1.2310 and 1.2340
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GOLD
Support: 1910 and 1882 Resistance: 1946 and 1966
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GBPUSD
Support: 1.3620 and 1.3530 Resistance: 1.3700 and 1.3760
euraud.PNG
 
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US Dollar started the first trading day of the year on a bearish note and plunged to below 89.50 during the European session. During December, major currencies remained stronger than the US dollar throughout the month and the dollar dropped more than 6% in 2020. The recent sharp sell-off in the USD fuelled by massive fiscal and monetary policy support, and progress in developing vaccines.

USD Fundamental outlook

For this week, the traders and investors will also pay attention to the important data for USD this week, U.S. Federal Reserve's minutes of the latest meeting on Wednesday and U.S. unemployment report for December is due Friday. On the other hand, the other key event for the US dollar this week, Tuesday’s runoff elections in Georgia that could determine which party controls the U.S. Senate.

USD Technical outlook

DXY


While considering the sell-off, the Dollar index trading near the critical demand zone on the monthly time frame. On a daily time frame, the overall movement remained bullish for the USD. In the short term if the price breaks below 89.30 which would open doors towards 89 and below that 88.60 is next. On the upper side, the first immediate resistance can be found in 90 and then 90.40.

Read more- https://gulfbrokers.com/en/usd-is-it-time-to-rebound
 
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The UK announced the third national lockdown which is expected to last until mid-February and the lockdown will become law in the early hours of Wednesday. The UK reported 59,000 new cases on Monday - the seventh day in a row it has recorded more than 50,000 cases. Scottish First Minister Nicola Sturgeon also ordered a lockdown on Monday.

"Our hospitals are under more pressure from COVID than at any time since the start of the pandemic,"- UK PM Boris Johnson said.

EQUITIES

Global stocks ended lower on Monday after governments across the US, Europe and UK are extending lockdowns to try to slow the spread of the virus. US equity indices dropped more than 1% on the first trading day of the new year. The Dow Jones Industrial Average fell more than 700 points. The S&P 500 and the Nasdaq Composite both dropped 1.5%.

OIL

Crude oil prices trading lower on Tuesday after the first day of OPEC meeting ended without any conclusion, the negotiations about production cuts will continue on Tuesday. On the other hand, the recent sell-off also fuelled by a spike in coronavirus cases in several parts of the world.

CURRENCIES

In the currency market, the Australian dollar and New Zealand dollar recovered from the previous session losses. Meanwhile, the Euro trading unchanged on Tuesday.
GOLD

Gold price trading strong for the second consecutive day supported by the weaker dollar and uncertainty over US Senate elections

Economic Outlook

On the data front, The US manufacturing PMI increased to 57.1 in December versus a preliminary reading of 56.5 and compared to 56.7 in November.

Moving ahead to the North American session, the investors and traders should closely monitor the important economic data - US ISM Manufacturing PMI data.

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 85.3 million. The United States has reported 20.6 million confirmed cases and has had more than 351,000 deaths from COVID-19.

Technical Outlook

Dollar Index:
The USD retreated from the previous session high after the index failed to break above 90 levels. At the time of writing, DXY trading below 89.70.

audusd


The important levels to watch for today: Support- 89.60 and 89.30 Resistance- 90 and 90.40.

GOLD: The precious metal trading near the previous day highs and the momentum remains bullish throughout the European session. The important levels to watch today $1932 and $1950.

gold neww


The important levels to watch for today: Support- 1932 and 1926 Resistance- 1945 and 1950.

Quote of the day: Trading decisions should be made as unemotionally as possible – Richard Dennis.

Read more- https://gulfbrokers.com/en/daily-market-report-231
 
Global markets started the year on a strong note while the bulls failed to keep the momentum.

Moving ahead there are important economic events and earnings to watch this week.

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