Daily Market Report by GulfBrokers 2020-2021

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The US nonfarm payrolls report is the highlight of today’s economic calendar. US Bureau of Labor Statistics will release the NFP at 12:30 GMT. The consensus is for an increase of 978k non-farm payroll jobs and a decline in the unemployment rate to 5.8% from 6%.

EQUITIES

Wall Street ended higher on Thursday supported by upbeat Q1 earnings results and strong US weekly jobless claims numbers. The US jobless claims dropped to the lowest level since March 2020.

On the earnings front, Nikola (NASDAQ: NKLA) and DraftKings (NASDAQ: DKNG) reporting earnings today before the bell.

OIL

Crude oil prices retreated from the weekly highs as the investors are still worried about the rising coronavirus cases in India and Japan will weaken global fuel demand. India reported another record daily rise in coronavirus cases, 414,188, on Friday.

CURRENCIES

In the currency market, the USD/CAD plunged below the 2018 low on Thursday. While considering the recent sell-off of the currency pair trading near the demand zones the further direction will depend on both US and Canada employment figures which will release later today.

GOLD

The Safe-haven metal hit a fresh monthly high of $1821 on Friday supported by the weaker US dollar and overall, the movement of gold remained bullish from Wednesday.

Economic Outlook

On the data front, the US labour department released the latest jobless claims data on Thursday. The data showed the Unemployment Claims for last week came below 500k against the anticipated 540K.

Moving ahead today, the important events to watch:

US – Nonfarm payrolls: GMT – 12.30

CANADA – Employment report: GMT – 12.30

Coronavirus update:

Worldwide, more than 155 million people have been confirmed infected and more than 3.2 million have died. The United States has confirmed over 32.5 million cases and has had more than 578,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

DOLLAR INDEX:
US dollar continuously trading weaker for the second consecutive day ahead of NFP report. Now the future direction of USD will depend on NFP figures which will release later today.

DXY


The important levels to watch for today: Support- 90.70 and 90.40 Resistance- 91.00 and 91.30.

GOLD: The precious metal trading extra volatile ahead of US job data. At the time of writing, the metal hovers near the $1820 area.

gold neww


The important levels to watch for today: Support- 1812 and 1800 Resistance- 1826 and 1835.

Quote of the day: “Investing isn’t about beating others at their game. It’s about controlling yourself at your own game.” — Benjamin Graham.

Read more- https://gulfbrokers.com/en/daily-market-report-302
 
CAD is among the best-performer currency pair during the last couple of week. The USDCAD plunged below the 2018 low on Thursday.

While considering the recent sell-off of the Loonie trading near the demand area the further direction will depend on both the US & Canada Employment report which will release later today.

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The US dollar underperformed all the major currencies last week and plunged to a fresh monthly low following the disappointing US employment report. The jobs report showed that the U.S. economy added only 266,000 jobs compared to the expectations of more than 970,000 and the unemployment rate rose from 6.0% in March to 6.1% in April.

EQUITIES

Wall Street ended higher on Friday despite a weaker-than-expected US employment report. Both the Dow Jones Industrial Average and S&P 500 hit a new record high on Friday.

OIL

Crude oil prices started the week on a positive note boosted by the better-than-expected US oil inventory data and easing of lockdowns in the US and parts of Europe.

CURRENCIES

In the currency market, the EUR/USD hovers near the previous week high. While the British pound trading strong against the Euro supported by the strong Halifax house price data and the results of last week’s UK elections.

GOLD

The Safe haven metal trading steady above $1830 on Monday. The key data for the Gold for this week will once again be the US inflation figures and the king dollar movement.

Economic Outlook

On the data front, Australia released the March retail sales figures. The data showed the retail sales increased by 1.3% during March, slightly lower than the 1.4% increase seen in the previous month.

This week the main highlights of the economic calendar will be the latest Inflation numbers from China, the US and Germany, UK GDP, and US retail sales data.

Coronavirus update:

Worldwide, more than 158 million people have been confirmed infected and more than 3.2 million have died. The United States has confirmed over 32.7 million cases and has had more than 580,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

DOLLAR INDEX:
The US dollar extends lower on Monday while considering the recent sell-off of the Index trading near to the short-term demand zone 90.

DXY


The important levels to watch for today: Support- 90 and 89.70 Resistance- 90.30 and 90.60.

GOLD: The yellow metal reversed from the previous week highs. Meanwhile, the overall momentum remains bullish supported by the weaker dollar.

gold neww


The important levels to watch for today: Support- 1828 and 1820 Resistance- 1842 and 1850.

Quote of the day: "If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes."

Read more- https://gulfbrokers.com/en/daily-market-report-303
 
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Wall Street ended lower on Monday driven by a broad decline in technology firms and rising inflationary pressures around the world. The Nasdaq 100 Index plunged more than 2.5% on Monday.

EQUITIES

Chinese and European shares traded lower on Tuesday following a selloff on Wall Street overnight. While China released the April inflation data, the data showed the annual inflation rate rose to 0.9% in April 2021 from 0.4%.

On the earnings front, Palantir (NYSE: PLTR) reporting earnings today before the bell while Electronic Arts (NASDAQ: EA), and Fubo TV (NYSE: FUBO) is scheduled to report results after the market close.

OIL

Crude oil prices remain under pressure after a temporary closure of the largest US fuel pipeline due to a cyberattack.

CURRENCIES

In the currency market, the EUR/USD recovered from the early session losses supported by stronger-than-expected German economic data. Meanwhile, the GBP/USD slightly retreat from the Monday highs.

GOLD

The Safe haven metal trading unchanged on Tuesday as investors await U.S. inflation data for April, which will come out tomorrow.

Economic Outlook

On the data front, Germany’s ZEW Economic Sentiment Indicator came at 84.4 in May 2021, higher than the market expectations of 72.0.

Moving ahead to the North American session, the investors should closely monitor the Bank of England Andrew Bailey's speech and US JOLTs job openings numbers.

Coronavirus update:

Worldwide, more than 158 million people have been confirmed infected and more than 3.2 million have died. The United States has confirmed over 32.7 million cases and has had more than 580,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair trading steady above 1.2160. Overall, the momentum remains bullish throughout the European session.

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The important levels to watch for today: Support-1.2130 and 1.2110 Resistance- 1.2180 and 1.2200.

GOLD: The yellow metal trading above $1840 area during the European session, if the bullish momentum continues the next upside levels to watch the $1850 and $1856 zone. On the flip side, the immediate support at $1832/30.

gold neww


The important levels to watch for today: Support- 1830 and 1825 Resistance- 1845 and 1850.

Quote of the day: “Inflation is not only unnecessary for economic growth. As long as it exists it is the enemy of economic growth” - Henry Hazlitt.

Read more- https://gulfbrokers.com/en/daily-market-report-304
 
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The British pound recovered from the early session low after the March UK GDP reported better-than-expected. The data showed the UK economy grew 2.1% in March, compared to the 1.3% forecast. Meanwhile, during the first quarter (Jan to Mar) the economy contracted by 1.5%.

EQUITIES

US stock futures trading mixed as are awaiting the release of the US inflation report later in the day. On Tuesday, wall street extends lower following the mixed comments from the FED speakers and renewed worries about the potential rise in inflation across global markets.

On the earnings front, Vroom (NASDAQ: VRM), and Bumble (NASDAQ: BMBL) is scheduled to report results after the market close.

OIL

Crude oil prices trading volatile on Wednesday ahead of the EIA inventory report. The oil prices climb to a new session high after the better-than-expected API crude inventory data and positive comments from OPEC about the recovery of global oil demand.

CURRENCIES

In the currency market, the Australian dollar and New Zealand dollar slipped to a new weekly low driven by a selloff in equity markets. On the other hand, the USD/CAD struggling to find the upside momentum supported by the strong oil prices.

GOLD

The Safe haven metal trading lower on Wednesday. During the previous session, the metal fell to a fresh weekly low of $1818 following the increase in yields on bonds and the US dollar.

Economic Outlook

On the data front, the March US JOLTs job openings numbers came at 8.123 million, compared to the market expectations of 7.5 million.

Moving ahead today, the important events to watch:

US – CPI: GMT – 12.30

US – EIA crude inventories: GMT – 14.30

Coronavirus update:

Worldwide, more than 159 million people have been confirmed infected and more than 3.3 million have died. The United States has confirmed over 32.7 million cases and has had more than 581,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EUR/USD:
The currency pair retreat after it failed to break the weekly high. At the time of writing, the pair hovers near the 1.2130 area.

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The important levels to watch for today: Support-1.2110 and 1.2080 Resistance- 1.2150 and 1.2180.


GOLD: The yellow metal trading above $1830 today. The near-term resistance is around $1845, any break over targets $1850/$1855. On the other side, the immediate support is at $1826 and any break will drag the gold to $1816/10 levels.

gold neww


The important levels to watch for today: Support- 1826 and 1816 Resistance- 1845 and 1855.

Quote of the day: “Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you.” – Larry Hite.

Read more- https://gulfbrokers.com/en/daily-market-report-305
 
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