Daily Market Report by GulfBrokers 2020-2021

Status
Not open for further replies.
chay-kelly-pJZ2NQmfnhw-unsplash (1).jpg

On Friday, the latest data showed the Eurozone manufacturing and German services PMI activity growth dropped in August. Meantime, German manufacturing production showed strong improvement. Germany announced on Thursday 1,707 new COVID cases over the previous 24 hours, the highest number since late April.

  • German flash services PMI (August): 50.8 vs 55.1 expected, prior 55.6
  • Eurozone manufacturing PMI(August): 51.7 vs 52.9 expected, prior 51.8
  • German flash manufacturing PMI (August): 53 vs 52.5 expected, prior 51

EQUITIES

On Thursday, Wall Street finished higher while European shares closed lower after the minutes of the July European Central Bank meeting warned, “the breadth and scale of the recovery remained uneven and partial.”

OIL

Crude Oil prices recovered from the early losses on European session, the price dropped after the OPEC+ report showed the group expects oil demand to drop by 9.1 million bpd in 2020, 100,000 bpd more than in its previous estimate.

CURRENCIES

In The currency market, the EUR/USD dropped back to 1.18 level after the weaker-than-expected PMI numbers. On Thursday, the currency pair rebounded from 1.18 and hit a new session high of 1.1880 today before the PMI figures released.

GOLD

On Thursday, the gold price closed slightly higher boosted by an unexpected rise in the jobless claims and weaker-than-expected Philly Fed Manufacturing Index data.

Economic Outlook

On Thursday, U.S. Department of Labor reported that the U.S. Initial Jobless Claims rose by 1,106,00 in the week ended Aug 15th, higher than 925k anticipated.

On the US-China front, Washington rejected plans to meet with China over the Phase 1 trade deal after officials in Beijing said bilateral talks could be held in the coming days.

Moving ahead today, the important events to watch:



CANADA Retail sales – 12.30 GMT



US manufacturing PMI – 13.45 GMT



US existing home sales– 14.00 GMT


Coronavirus update:

The number of people infected with the coronavirus across the world hit 22.7 million, of which at least 794 thousand people have died and 14.5 million have recovered, according to data released by the Johns Hopkins University. France, Germany, and Spain have all marked the highest day-to-day increase in COVID-19 infections since the end of their lockdowns.

Technical Outlook

XAU/USD:
The gold price trading around $1930 on Friday, supported by $1920. Any break below this level will open doors to $1900.

audusd


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

GBP/USD: The British pound retreated to below 1.3180 during the European session after the EU's chief negotiator Michel Barnier said that the state aid still no willingness on UK side to take on board EU priorities.

euraud


The important levels to watch for today: Support- 1.3130 and 1.3100 Resistance- 1.3200 and 1.3260.

Quote of the day: If you shopping for common stocks choose the way you would buy groceries, not the way you would buy perfume- Benjamin Graham.


Read more- https://gulfbrokers.com/en/daily-market-report-151
 
The king Dollar appreciated last week after the 8-week losing streak.

Key technical levels to watch this week

Dollar index
Support: 92.50 and 92 Resistance: 93.50 and 94
audusd.PNG


EUR/USD
Support:1.1730 and 1.1695 Resistance:1.1880 and 1.1930
cruse.PNG


GBP/USD
Support: 1.3050 and 1.2980 Resistance: 1.3180 and 1.3260
euraud.PNG


GOLD
Support: 1920 and 1890 Resistance: 1980 and 2015
oil 2.PNG
 
shutterstock_1698980812 (1).jpg

US stock futures and European stocks trading higher on Monday after The Food and Drug Administration on Sunday issued an emergency use authorization for convalescent plasma to treat COVID-19. The method was determined to be safe based on an analysis of 20,000 patients who received the treatment, according to the agency.

"This is a powerful therapy that transfuses very, very strong antibodies form the blood of recovered patients to help treat patients battling a current infection," US President Trump said.

EQUITIES

Global shares started the week with good vibes boosted by the hopes of a coronavirus treatment and reports suggest that the US President Donald Trump has considered fast-tracking a Covid-19 vaccine ahead of November’s election.

OIL

Crude Oil prices surged on Monday after tropical storms Marco and Laura hit the Gulf of Mexico on Sunday, shutting 58% of the offshore oil production and 45% of natural gas production.

CURRENCIES

In The currency market, the EUR/USD recovered from the previous session lows and trading steadily above 1.18 on Monday. The main attractions for Euro this week, On Tuesday Germany, will publish GDP for Q2 2020 and data on business sentiment from IFO for August.

GOLD

Gold price trading higher on Monday ahead of the annual Jackson Hole symposium this week. The 2020 Economic Policy Symposium will be conducted online from August 27th to August 28th.

Economic Outlook


On the US-China front, Reuters reported that TikTok had planned to file a lawsuit Monday against US President Donald Trump's executive order prohibiting transactions with the app and its Chinese parent ByteDance. Meanwhile, White House is looking to reassure US firms they can still do business with the company’s WeChat messaging app in China, despite a crackdown on the service at home.

On the data front, New Zealand retail sales fell by 14.6% in real terms in Q2, compared to a 1.2% decline in Q1. Retail Sales excluding Autos for the same period fell by 13.7% after a slight increase of 0.1% in the last quarter.

Coronavirus update:

COVID-19 deaths worldwide passed 800 thousand and cases rose to more than 23 million, according to data from Johns Hopkins University. In the US, Coronavirus-related deaths fell below 1,000 for the first time in five days, while fatalities in Mexico surpassed 60,000. While France reported its highest daily level of coronavirus cases since the end of a two-month lockdown period in May. The French health ministry on Sunday reported 4,897 new COVID-19 cases over the past 24 hours. South Korea reports 397 new infections, up from the previous day's 332, marking its highest daily rise since early March.

Technical Outlook

XAU/USD:
The gold price trading now above $1940, overall, the momentum remained bullish throughout the European session.

audusd


The important levels to watch for today: Support- 1920 and 1900 Resistance- 1965 and 1983.

EUR/USD: The currency pair trading steady on Monday supported by the weaker dollar. On Friday, the pair dropped to 1.1755 after US dollar appreciated 0.2% last week.

cruse


The important levels to watch for today: Support- 1.1800 and 1.1760 Resistance- 1.1860 and 1.1890.

Quote of the day: A successful trader is rational, analytical, able to control emotions, practical, and profit-oriented – Monroe Trout.

Read more - https://gulfbrokers.com/en/daily-market-report-152
 
Important economic events this week: JacksonHole Hole symposium, Germany Q2 GDP and IFO data, US GDP and Fed’s Chair Powell speech, US crude oil inventories.

Earnings to watch: Dell, HP, Workday, Bestbuy and Medtronics

Gulf_brokers_Kalendar_W35_1200x1200px-002 (002).png
 
bull-1885566.jpg

The US dollar index, a measure of the USD’s value against a weighted basket of foreign currencies. During the last week, the King dollar ended higher after the 8-week losing streak boosted by the release of the FOMC minutes which provide both caution and less dovish tones. The dollar also received continues support on Friday after better-than-expected the US home sales and PMI data.

This week the traders and Investors will likely keep a look at the preliminary figures of the US Q2 GDP and the Fed’s Jackson Hole symposium on how the monetary policy of the US could develop soon. The last GDP figures showed that the US economy faced the deepest decline in decades. If this week data show some rebound in the last quarter will support the dollar recovery. The Jackson Hole symposium, which will take place as an online conference on Thursday, at which Jeremy Powell will have to outline the updated guidelines of the Fed in shaping monetary policy.

Dollar Index technical outlook
The dollar index closed higher on Monday. The greenback currently faces an important resistance level at 93.50. At the time of writing, the US dollar index is trading around 93.15. If the bullish momentum continues then the next upside level to watch 94(Monthly high). On the downside, any meaningful pullback now seems to find some support near the 92.50 zones, below which the slide could further get extended towards the 92/91.80 region.

cruse


The expected trading range for USD this week is between 92.00 support and 94.00 resistance. I do not expect USD will make a new low this week.

Read more- https://gulfbrokers.com/en/will-the-us-dollar-continue-to-rise-this-week
 
shutterstock_1451643242 (1).jpg

On Tuesday, the data showed Germany's economy shrank by a record 9.7% in the second quarter, slightly less than an initial estimate of a 10.1% contraction. Meantime, the German IFO Business Climate Index rose to 92.6 in August from the 90.5 previous and current Economic Assessment reported at 87.9 points, compared to last month's 84.5 and 87.0 anticipated.

EQUITIES

Asian stocks traded higher on Tuesday following the record highs overnight on Wall Street and amid signs of progress in U.S.-China talks. On Monday, Wall Street ended higher after the US Food and Drug Administration (FDA) provided emergency authorization to the use of blood plasma of recovered patients to treat COVID-19 patients. The S&P 500 rose 1%, after closing at a new high Friday. It was the third record in the last five trading sessions.

OIL

Crude Oil prices trading steady ahead of the API data today. During the last week, the inventory data came better-than-expected with a decline of 4.26M barrels compared to a decline of 2M forecasted.

CURRENCIES

In the currency market, the EUR/USD recovered from the previous session lows after strong German IFO data and better-than-expected GDP numbers.

GOLD

Gold price trading lower on Tuesday amid the increased market risk sentiment over the optimism related to a COVID-19 treatment that lifted Wall Street stocks to a record high.

Economic Outlook

On the US-China front, According to China's Ministry of Commerce, both sides reaffirmed their commitment to the phase-one trade deal during the biannual review of the accord. The media reports said that the US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin had a call with Chinese Vice Premier Liu He Monday evening stateside to “discuss the implementation of the historic Phase One Agreement between the United States and China.”

AstraZeneca shares rose 2.1% after the Financial Times reported the US Trump administration was considering fast-tracking an experimental COVID-19 vaccine being developed by the company. AstraZeneca started early-stage trials for an antibody-based treatment for the prevention and treatment of COVID-19.

Coronavirus update:

The number of people infected with the coronavirus across the world hit 23.6 million, of which at least 813 thousand people have died and 15.3 million have recovered, according to data released by the Johns Hopkins University. "Over 1.7 million new Covid-19 cases and 39,000 new deaths were reported to WHO for the week ending 23 August, a 4% decrease in the number of cases and (a 12% decrease) in the number of deaths compared to the previous week," the WHO said.

Technical Outlook

XAU/USD:
The gold price trading near the $1920 support zone, any break below this level the next downside to watching $1900.

euraud


The important levels to watch for today: Support- 1912 and 1900 Resistance- 1940 and 1965.



EUR/USD: The currency pair trading steady above 1.1830 during the European session, supported by 1.1780.

cruse


The important levels to watch for today: Support- 1.1800 and 1.1780 Resistance- 1.1850 and 1.1890.

Quote of the day: Everyone has the brainpower to make money in stocks. Not everyone has the stomach – Peter Lynch.

Read more - https://gulfbrokers.com/en/daily-market-report-153
 
shutterstock_569745832 (1).jpg

Crude oil price surged to new session highs on Wednesday after US oil producers closed most of their offshore production in the Gulf of Mexico in anticipation of Hurricane Laura. Producers evacuated 310 offshore facilities and shut 1.56 million barrels per day of crude output, 84% of Gulf of Mexico’s offshore production - near the 90% outage that Hurricane Katrina brought 15 years ago. The oil prices received an additional boost after the weekly API data showed a 4.5-million-barrel decline in US weekly inventories, versus a draw of 2.7-million-barrels expected by analysts.

EQUITIES

Global stocks trading mixed on Wednesday as the investors await Fed Chair Powell speech at the Jackson Hole Symposium on Thursday for further clues on the Fed's next monetary policy steps. On Tuesday, Wall Street ended mixed with the Dow eased 0.2%, the tech-heavy Nasdaq Composite rose 0.8% and the S&P 500 gained 0.4% to reach fresh record closing highs.

OIL

Crude Oil prices trading at their highest since early March on Wednesday supported by positive API report and rising worries about supply disruptions.

CURRENCIES

In the currency market, the commodity currencies like the Australian dollar and New Zealand dollar climbed to a new weekly high lifted by strong oil prices and positive signs of progress in Washington-Beijing trade relations.

GOLD

Gold price slipped to the new weekly low on Tuesday as risk sentiment improves lifted by vaccine-related optimism and the possibility of US-China trade tensions easing.

Economic Outlook

On the US-China front, according to the latest news, the US and China confirmed that they were committed to honouring the terms of the phase one trade deal. The two countries would be discussing next steps in trade negotiations, including the protection of intellectual property and obstacles to US financial services and agriculture.

On the earnings front, Salesforce (NYSE: CRM) surged 13% after-hours trading on Tuesday after the company Q2 financial results exceeded Wall Street estimates. “We know that we are light and we have to continue to be that light, especially during these difficult times,” CEO Marc Benioff said.

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 23.9 million, of which at least 819 thousand people have died and 15.5 million have recovered, according to data released by the Johns Hopkins University. In the US, 43,000 new cases are being reported daily across the country, down 21% from early August, according to data compiled by Johns Hopkins University. India reports 67,151 cases and 1,059 fatalities in the last 24 hours, bringing the country total to over 3.23 million infections and 59,449 deaths.

Technical Outlook

XAU/USD:
The gold price hovers near the $1920 zone during the European session ahead of the release of the US Durable Goods Orders data.

audusd


The important levels to watch for today: Support- 1910 and 1898 Resistance- 1930 and 1965.

Dollar Index: The currency pair trading steady above 93 level ahead of Fed Chairman Jerome Powell is due to speak at a virtual Jackson Hole symposium on Thursday.

cruse


The important levels to watch for today: Support- 92.80 and 92.50 Resistance- 93.50 and 94.

Quote of the day: It isn’t as important to buy as cheap as possible as it is to buy at the right time – Jesse Livermore.


Read more- https://gulfbrokers.com/en/daily-market-report-154
 
shutterstock_1739960951 (1).jpg

American Biotechnology firm, Moderna (NASDAQ: MRNA) shares closed in positive for the second consecutive day. The $MRNA stock closed more than 6% higher on Wednesday after the early data of its experimental COVID-19 vaccine showed comparable immune response between older and younger volunteers. The analysis looked at 100 microgram dosage that has been selected for the larger Phase 3 trial.

In a best-case scenario, we might know if the vaccine works by October- Moderna CEO Stephane Bancel said.

The drug developer is one of the leading US contenders to develop a vaccine for novel Coronavirus. Recently, the company has announced that it has concluded advanced talks with the European Union to supply 80 million doses of its COVID-19 vaccine. Earlier this month, Moderna reached an agreement with the US government for an initial 100 million doses of its vaccine candidate mRNA-1273 in a deal worth up to $1.525bn.

audusd


$MRNA shares climbed almost 10$ in the last two days from 62$ to 72$. During the July month, the share price reached a record high of 95$ after receiving an additional $472 million of funding, starting a phase-3 trial of COVID-19 vaccine.
 
home-office-5231389 (1).jpg

The investors and traders cautiously await comments from the U.S. Federal Reserve Chairman Jerome Powell, he scheduled to deliver a speech reviewing the central bank’s monetary policy framework at the virtual Jackson Hole Economic summit today. Due to coronavirus pandemic this year’s Jackson Hole economic policy symposium to be held online on 27 and 28 August.

EQUITIES

US stock futures and European shares trading lower ahead of the Fed Chair speech on the annual Jackson Hole Symposium later in the day, the negative sentiment was also hurt by news rising tensions between the US and China. On Wednesday, Wall Street ended higher with the S&P 500 and Nasdaq benchmarks climbed to fresh records on upbeat corporate results.

OIL

Crude Oil prices trading steady on Thursday after the EIA reported a bigger-than-expected draw in US crude oil inventories. The data showed the crude oil stocks change was -4.7 million barrels in the week ending August 21st, compared to analysts’ estimate of -3.7 million barrels.

CURRENCIES

In the currency market, the dollar index extends lower ahead of speech from the US Federal Reserve Chairman Jerome Powell at the Economic Symposium.

GOLD

Gold price slightly retreated from the previous session highs. The gold investors waiting for the US GDP report for the second quarter of 2020 and a highly anticipated speech by Federal Reserve chair Jerome Powell.

Economic Outlook

On the US-China front, the tensions are building up again after China fired missiles in the South China Sea even as the US imposed sanctions on Chinese companies with links to this region.

On the data front, new orders for the US manufactured durable goods rose by 11.2% in July 2020, easily beating market expectations of 4.3%.

Moving ahead today, the important events to watch:

US GDP – 12.30 GMT

US Jobless claims – 12.30 GMT

US Federal Reserve Chair Jerome Powell speech– 13.10 GMT

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 24.1 million, of which at least 825 thousand people have died and 15.7 million have recovered, according to data released by the Johns Hopkins University. The U.S. has suffered the most from the pandemic, 5,807,480 cases and 179,235 fatalities, followed by Brazil with 3,669,995 cases and 116,580 deaths. India confirmed more than 3.2 million cases.

Technical Outlook

XAU/USD:
The gold price trading above $1940 during the European session, on Wednesday the yellow metal slipped to fresh weekly low of $1902 before it climbed back to $1950.

euraud


The important levels to watch for today: Support- 1926 and 1910 Resistance- 1965 and 1980.



GBP/USD: The currency pair slightly retreated from the daily highs, at the time of writing the pair hovers near the 1.3200.

cruse


The important levels to watch for today: Support- 1.3180 and 1.3140 Resistance- 1.3230 and 1.3270.



Quote of the day: The difference between successful people and successful people is that really successful people say no to almost everything- Warren Buffet.


Read more- https://gulfbrokers.com/en/daily-market-report-155
 
EUR/USD
Support: 1.1770 and 1.1740 Resistance: 1.1880 and 1.1915
oil 2.PNG

GOLD
Support: 1926 and 1910 Resistance: 1960 and 1980
euraud.PNG

GBP/USD
Support: 1.3140 and 1.31 Resistance: 1.3230 and 1.3270
cruse.PNG
 
Status
Not open for further replies.
Back
Top