Daily Market Report by GulfBrokers 2020-2021

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Important trading levels to watch ahead of US retail sales and industrial data:

GOLD
Support: $1940 and $1920 Resistance: $1960 and $1980
EURUSD
Support: 1.1770 and 1.1710 Resistance: 1.1860 and 1.1915
GBPUSD
Support: 1.3040 and 1.3000 Resistance: 1.3100 and 1.3130
AUDUSD
Support: 0.7110 and 0.7060 Resistance: 0.7180 and 0.7230
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EUR/USD climbed to last week high of 1.1865. If the price won't break above the previous month high 1.1915 we may see a pullback to 1.1780 then 1.1740. On the other side break above 1.1915, the next level to watch 1.1940/1.20.

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Crude oil price trading steady on Monday ahead of OPEC meeting later this week. The Joint Ministerial Monitoring Committee (JMCC), which is co-chaired by Saudi Arabia and Russia, is set to meet on Aug. 19 to assess compliance with quotas and recommend any adjustments to the cuts if needed. In the last meeting, the OPEC has initially made a deal to taper their record production cuts of about 9.7mbpd to about 7.7mbpd from early august that has been in line with the initial plan.

EQUITIES

Japanese stocks plunged on Monday after data showed the world’s third-largest economy shrank 27.8% from a year earlier in the three months ending in June. Chinese stocks traded lower after PBoC injected 700-billion-yuan worth of medium-term lending facility (MLF) loans at 2.95% for the fourth month.

OIL

Crude oil price trading higher on Monday supported by the latest rig data from oilfield services company Baker Hughes, as it showed the oil rig-count fell to a fresh, 15-year-low.

CURRENCIES

In The currency market, the Dollar index slightly recovered from the lows as investors cautiously waiting for the Federal Reserve minutes from last month’s meeting, due to be released on Wednesday. While the British pound trading strong against the dollar and Euro after positive comments from the Bank of England's chief economist Andy Haldane, he said the UK economy will see a rapid recovery from the coronavirus shock on the back of consumer spending.

GOLD

The gold price trading unchanged on Monday after a 5% drop in the last week. This week Gold traders will closely monitor the recent updates from the US-China trade tensions and the minutes from Federal Reserve's last policy meeting.

Economic Outlook

On the US-China front, as per the recent update the talks between the US and Chinese officials over the phase-one trade deal that were supposed to take place on last Saturday were postponed. Meanwhile, US President Trump issued an executive order on Friday to force the TikTok owner to sell its US assets within 90 days, mentioning national security concerns and threatened to extend pressure to other Chinese firms such as Alibaba.

This week the main highlights of the economic calendar will be the release of the minutes from the Federal Reserve and RBA, UK and Eurozone CPI, OPEC meeting and Oil inventories.

Earnings to watch: Walmart, Nvidia and Alibaba

Coronavirus update:

Worldwide, more than 21 million people have been confirmed infected and over 771,000 have died, according to Johns Hopkins University. In the US, the Covid-19 fatalities surpassed 170,000 in the US while the number of cases is more than 5.4 million. On the other hand, India on Monday reported highest-ever single day recoveries, the union health ministry announced. As many as 57,584 Covid-19 patients recovered on Monday, pushing the total number of recoveries to 19,19,842.

Technical Outlook

XAU/USD:
The gold price trading stead above $1950 on Monday, on last week the precious metal witnessed the first weekly decline since June as traders booked-in profits.

audusd


The important levels to watch for today: Support- 1940 and 1920 Resistance- 1960 and 1980.

EUR/USD: The currency pair slightly retreated from the highs of 1.1860 and at the time of writing the pair trading around 1.1840.

cruse


The important levels to watch for today: Support- 1.1810 and 1.1770 Resistance- 1.1870 and 1.1900.

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.

Read more- https://gulfbrokers.com/en/daily-market-report-147
 
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The US dollar index plunged to a below the previous month low of 92.50 on Tuesday as investors remain bearish on the dollar due to the uncertainty over whether US lawmakers would strike an agreement on a new coronavirus relief package.

EQUITIES

Asian markets traded mixed on Tuesday as investors remained concerned about growing tensions between the US and China and lack of movement on a new US stimulus. On Monday, Wall Street ended mixed, the Dow Jones closed in negative territory while S&P 500 and the Nasdaq Composite rallied to a new session high.

OIL


Crude oil price trading steady on Tuesday after OPEC+ confirming that countries were almost completely complying with deeper supply cuts in the wake of fall in demand due to the coronavirus crisis.

CURRENCIES

In The currency market, the Euro and the British pound surged to session highs supported by the weaker dollar. The EUR/USD climbed back to above 1.19(psychological level) during the European session boosted by positive comments from ECB Vice President Luis De Guindos. He said that the European banks are unlikely to recover until 2022.

GOLD

The gold price surged to fresh weekly high on Tuesday, as a weaker dollar and a pull-back in US Treasury yields boosted demand for the safe-haven metal. In addition, there is no progress regarding another fiscal stimulus package, which remains entrenched within discussions among US lawmakers.

Economic Outlook

On the US-China front, US announced more restrictions on Chinese tech giant Huawei, adding another 38 of its affiliates in 21 countries to its blacklist to limit adoption of Huawei’s 5G technology.

On the next US stimulus package front, Treasury Secretary Steven Mnuchin said that he and President Donald Trump were ready to disburse funds but blamed the holdup on the Democrats.

Coronavirus update:

The number of people infected with the coronavirus across the world hit the 21.9 million mark, of which at least 774 thousand people have died and 13.9 million have recovered, according to data released by the Johns Hopkins University. China reports 22 new coronavirus cases for Monday, the same as the tally a day earlier. India's virus fatalities surpass 50,000 as total infections surge to nearly 2.65 million with a daily increase of 57,981. Meanwhile, the U.S. drug developer Novavax says it has begun mid-stage clinical trials of a COVID-19 vaccine candidate in South Africa.

Technical Outlook

XAU/USD:
The gold price trading steady above $2000 during the European session, if the bullish momentum continues the next level to watch $2030 then $2075.

cruse


The important levels to watch for today: Support- 1990 and 1960 Resistance- 2030 and 2050.

Dollar Index: The US Dollar index dropped back to the previous month low of 92.50 ahead FOMC meeting minutes tomorrow.

audusd


The important levels to watch for today: Support- 92.00 and 91.60 Resistance- 93.40 and 94.00.

Quote of the day: The best traders have trading habits, daily routines they repeat day after day- Henrique M. Simoes.

Read more- https://gulfbrokers.com/en/daily-market-report-148
 
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Walmart (NYSE: WMT) showed its continued growth during the pandemic, America’s biggest retailer announced better-than-expected second-quarter financial results on Tuesday. The company second-quarter results showed a U.S. comp-store sales increase of 9.3% over Q2 2019 and a 97% bounce in eCommerce. Pickup and delivery services experienced record-high sales, with approximately 3,450 stores allowing pickup and 2,730 stores offering same-day delivery.
  • Earnings per share (EPS) $1.56 vs. $1.25 expected
  • Revenue $137.7 billion vs. $135.5 billion expected
“I want to give a big thank you to our associates for their tireless efforts during these unprecedented times. We also appreciate the trust and confidence of our customers. We remain focused on serving them well now and expanding our set of global capabilities to serve them well in the future.” - Doug McMillon, CEO of Walmart, said.

During the quarter, Walmart’s revenue rose 5.6%, or $7.4 billion, from the same quarter a year ago. Meanwhile, Walmart said it hired more than 500,000 new workers since the beginning of the year and spent $1.5 billion on coronavirus-related costs, including three cash bonuses for employees, during the quarter.

On the other hand, Home Depot (NYSE: HD) also reported strong sales growth, the company’s same-store sales jumped 23.4% in the second quarter, surging past analysts’ average estimate of a 10.5% rise.

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On Tuesday, the Walmart shares surged 6% in the pre-market after the results announced, later the stock retreated from the new record highs of $137.63 and closed almost 1% lower.

Read more- https://gulfbrokers.com/en/walmart-climbed-to-new-heights-after-biggest-q2-earnings-surprise
 
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US Dollar trades below 2-year low as Investors and traders now wait for the US Federal Reserve monetary policy meeting minutes due later in the day. During the last FOMC meeting, the central bank left the policy unchanged as expected, but Fed Chair Powell reiterated that they stood ready to offer more support to the economy if necessary.

EQUITIES

Australian stocks traded higher on Wednesday after the Australian Government signed an agreement with UK-based drug company AstraZeneca to secure the potential COVID-19 vaccine developed by Oxford University if its trials prove successful. On Tuesday, the Wall Street ended higher, the S&P500 closed above its February, and an all-time high. On the other hand, the Dow Jones Industrial Average dropped 0.2%, while the Nasdaq Composite was up 0.7%.

OIL


Crude Oil price trading slightly lower on Wednesday ahead to data on U.S. crude oil inventories and OPEC meeting. Meanwhile, the API data showed, the crude oil inventories reported better-than-expected with a decline of 4.26M barrels compared to a decline of 2M forecasted.

CURRENCIES

In The currency market, the Dollar index hit 27- months low while EUR/USD climbed to fresh month high of 1.1965 during the previous session. The British pound rose to more than 8-month highs boosted by stronger-than-expected UK inflation data.

GOLD

The gold price slightly reversed from the fresh weekly highs, on Tuesday the precious metals surged back to above $2000 level.

Economic Outlook

On the US-China front, Trump said recently “I don’t want to deal with them now. With what they did to this country and to the world, I don’t want to talk to China right now.” Meantime, China adamantly opposes the latest U.S. actions against Huawei, Foreign Ministry spokesman Zhao Lijian tells regular news briefing Tuesday in Beijing. Zhao reiterated China’s willingness to retaliate against U.S. actions and said the U.S. move is "nothing short of bullying."

On the next US stimulus package front, US Secretary State Steven Mnuchin said that US President Donald Trump wanted to move forward with more economic aid, amid the coronavirus pandemic. While the Democratic leader of the lower chamber of Congress said a compromise was possible to reach a deal on a new US fiscal stimulus package.

Coronavirus update:

The number of people infected with the coronavirus across the world hit the 22.1 million level, of which at least 781 thousand people have died and 14.1 million have recovered, according to data released by the Johns Hopkins University. Meanwhile, the Prime Minister of Australia, Scott Morrison, said that Australia had secured access to a promising vaccine, which means that, if clinical trials are successful, the deal with AstraZeneca will secure “early access for every Australian.”

Technical Outlook

XAU/USD:
The gold price trading below $2000(psychological level) level during the European session ahead of FOMC meeting minutes tonight.

audusd


The important levels to watch for today: Support- 1980 and 1960 Resistance- 2015 and 2030.

EUR/USD: The currency pair trading unchanged on Wednesday after hitting the fresh weekly high of 1.1965 during the previous session.

cruse


The important levels to watch for today: Support- 1.1900 and 1.1860 Resistance- 1.1970 and 1.2000.

Quote of the day: Profits can be made safely only when the opportunity is available and not just because they happen to be desired or needed- Gerald M Loeb.


Read more- https://gulfbrokers.com/en/daily-market-report-149
 
EUR/USD back to near 1.1800 level after the currency pair failed to break above 1.20. The bullish momentum slowing down for now and if the selling pressure continues the next levels to watch 1.1780 followed by 1.1750.
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Dollar index rebounded from the 27 - months low, at the time of writing the pair trading above 93. The next upside to watching 93.40 then 94.00. On the downside side, the immediate support at 92.50.
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On the US-China front, China’s Commerce Ministry confirmed that it plans to hold trade talks with the US in the coming days. meanwhile, US Navy sailing in the Taiwan Strait is "extremely dangerous" and it is "not in line with the fundamental interests of China and the United States," the Chinese military noted.

EQUITIES

Global stocks trading lower on Thursday after the US Federal Reserve's latest meeting minutes highlighted doubts about the recovery of the world's largest economy. On Wednesday, Apple stock made history, the iPhone maker became the first US company to be valued at US$2 trillion. Its market value doubles in two years and its shares are currently priced at $462.83.

OIL

Crude Oil prices trading lower on Thursday after the OPEC+ warned that a second extended wave of coronavirus infections could hamper the oil market recovery. While the EIA US crude inventories came in at -1.632M – lower than the expected -2.67M barrels.

CURRENCIES

In The currency market, the EUR/USD fell back to near 1.18 area after weaker – than- expected Eurozone inflation numbers and the strong dollar move.

GOLD

The gold price plunged more than 3% on Wednesday after the FOMC minutes revealed that policymakers expressed little support regarding capping bond yields and the Fed remains genuinely concerned about the US economic recovery.

Economic Outlook

According to the latest FOMC minutes, the members agreed at their latest meeting in late July that the ongoing situation surrounding the coronavirus pandemic could weigh heavily on economic activity, employment, and inflation in the near term and was posing considerable risks to the economic outlook over the medium term. The readout on Fed discussions provides hints to further action that the U.S. central bank could take in September. No change in interest rate policy is expected until end-2021.

On the next US stimulus package front, on Wednesday, a senior Trump administration official said that a smaller coronavirus relief bill, to the tune of about $ 500 billion, could be approved, as opposed to a package of between $ 1 trillion and $ 3 trillion, as was previously expected, since Congress had been unable to reach any agreement.

Moving ahead today, the important events to watch:

Eurozone ECB Monetary Policy Meeting Accounts – 11.30 GMT

US Jobless claims – 12.30 GMT

US Philadelphia Fed Manufacturing Survey – 12.30 GMT

Coronavirus update:

The number of people infected with the coronavirus across the world crossed 22.4 million, of which at least 788 thousand people have died and 14.3 million have recovered, according to data released by the Johns Hopkins University. The United States reported 46,436 new coronavirus cases and 1,356 new virus-related deaths on Wednesday, according to Johns Hopkins University. Germany's number of confirmed coronavirus infections increased by 1,707 to 228,621 in the past 24 hours. The new cases mark Germany's highest daily toll since April when the pandemic was at its peak.

Technical Outlook

XAU/USD:
The gold price trading below $1930 during the European session after the yellow metal broke the $1940 support zone.

euraud


The important levels to watch for today: Support- 1920 and 1900 Resistance- 1940 and 1960.

Dollar Index: Dollar rebounded from the 27 - months low, at the time of writing the pair trading above 93. The next upside to watching 93.40 then 94.00.

cruse


The important levels to watch for today: Support- 92.50 and 92 Resistance- 93.40 and 94.00

Quote of the day: Whether we are talking about socks or stocks, I like buying quality merchandise when it is marked down- Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-150
 
EUR/USD rebounded from 1.1800, at the time writing the pair hovers near 1.1880 ahead of PMI data. Any break above this level the next upside to watching 1.19 then 1.1915. On the downside, the immediate support at 1.1840 followed by 1.18/1.1780.
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GOLD price trades below $1950 on Friday, the yellow metal slightly recovered early losses after $80 drop on Wednesday. Overall the bearish momentum still continues for today.

Important levels to watch today:

Support: $1920 and $1900

Resistance: $1965 and 1980
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