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Global markets ended last week on a positive note as prospects of slowing economic growth fanned hopes that global central banks may go slow on interest rate hikes. On Friday, the latest PCE inflation data showed the Federal Reserve’s preferred inflation gauge eased further in December, marking its smallest annual rise since October 2021.
Moving ahead, markets are expected to be volatile this week, with investors closely watching economic data and global events. The inventors are anxiously awaiting Wednesday’s decision by the Federal Reserve on interest rates along with ECB and BOE decisions on Thursday. On the other hand, investors should also closely monitor the release of the US jobs report on Friday. The upcoming data on the jobs market could help investors determine how the Federal Reserve will move ahead with its interest rate policy
On the earnings front, the companies scheduled to release their last quarter financial results this week will be Apple, Microsoft, Alphabet, Ford, Snap, Starbucks and Meta.
GOLD
The precious metal surged to a fresh 9-month high last week boosted by the weak dollar. However, the gold price had a strong retreat on Thursday after lagging to almost 1950. This week's FOMC meeting outcome is expected to be a pivotal moment for precious metals, as the Fed could signal a shift toward more accommodative policies.
For this week, considering heavy volatility there are chances the metal can rally back to above the key resistance of 1950. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 1910 and 1895 if the metal breaks below 1915.
DOLLAR INDEX
Finally, positive US GDP data and strong weekly jobless claims numbers gave the DXY bulls a push. While the overall momentum remains bearish due to prospects of a less aggressive tightening from the Federal Reserve. Fundamentally the greenback is expected to be extra volatile this week due to a busy economic calendar and all eyes remain on Wednesday’s FOMC meeting outcome.
The technical scenario is absolutely bearish after the last couple of weeks sell-off. While considering the recent bearish momentum the USD may find a strong support near the 101 and 100.80 areas. On the upper side, in the short-term the first immediate resistance at 102.40 followed by 102.90/103.
EURUSD
EURUSD traded with a bid tone for the entire last week, with some weakness seen only on Thursday and Friday after the King dollar regained some upside momentum. This week, Euro traders and investors are focused on possible measures and changes that the European Central Bank may undertake in the February meeting.
The currency pair remained in a range above 1.0800 last week, and the initial bias remains bullish for the upcoming week. The key resistance is located for the pair around 1.0930, a break above this level will confirm a possible move to 1.1000 and 1.1030. On the downside, any meaningful pullback now seems to find some support near the 1.0800 zones, below which the slide could further get extended towards the 1.0760/30 regions.
DOW JONES
Dow Jones and other US stock indexes closed broadly higher Friday as investors welcomed encouraging economic data. The US GDP growth surpassed expectations in the fourth quarter and weekly unemployment claims fell to a nine-month low. That apart, solid earnings reports from Tesla (NASDAQ: TSLA) and American Express (NYSE: AXP) also boosted stock prices. For Dow this week, Q4 earnings remain in focus as investors parse the latest results to understand how inflation is affecting businesses and consumers.
This week, the key resistance is located for the index around 34,400, a break above this level will confirm a possible move to 34,900/35,000. On the downside, any meaningful pullback now seems to find some support near the 33,500 zones, below which the slide could further get extended towards the 33,250 and 33,000 regions.
Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-65
Moving ahead, markets are expected to be volatile this week, with investors closely watching economic data and global events. The inventors are anxiously awaiting Wednesday’s decision by the Federal Reserve on interest rates along with ECB and BOE decisions on Thursday. On the other hand, investors should also closely monitor the release of the US jobs report on Friday. The upcoming data on the jobs market could help investors determine how the Federal Reserve will move ahead with its interest rate policy
On the earnings front, the companies scheduled to release their last quarter financial results this week will be Apple, Microsoft, Alphabet, Ford, Snap, Starbucks and Meta.
GOLD
The precious metal surged to a fresh 9-month high last week boosted by the weak dollar. However, the gold price had a strong retreat on Thursday after lagging to almost 1950. This week's FOMC meeting outcome is expected to be a pivotal moment for precious metals, as the Fed could signal a shift toward more accommodative policies.
For this week, considering heavy volatility there are chances the metal can rally back to above the key resistance of 1950. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 1910 and 1895 if the metal breaks below 1915.
DOLLAR INDEX
Finally, positive US GDP data and strong weekly jobless claims numbers gave the DXY bulls a push. While the overall momentum remains bearish due to prospects of a less aggressive tightening from the Federal Reserve. Fundamentally the greenback is expected to be extra volatile this week due to a busy economic calendar and all eyes remain on Wednesday’s FOMC meeting outcome.
The technical scenario is absolutely bearish after the last couple of weeks sell-off. While considering the recent bearish momentum the USD may find a strong support near the 101 and 100.80 areas. On the upper side, in the short-term the first immediate resistance at 102.40 followed by 102.90/103.
EURUSD
EURUSD traded with a bid tone for the entire last week, with some weakness seen only on Thursday and Friday after the King dollar regained some upside momentum. This week, Euro traders and investors are focused on possible measures and changes that the European Central Bank may undertake in the February meeting.
The currency pair remained in a range above 1.0800 last week, and the initial bias remains bullish for the upcoming week. The key resistance is located for the pair around 1.0930, a break above this level will confirm a possible move to 1.1000 and 1.1030. On the downside, any meaningful pullback now seems to find some support near the 1.0800 zones, below which the slide could further get extended towards the 1.0760/30 regions.
DOW JONES
Dow Jones and other US stock indexes closed broadly higher Friday as investors welcomed encouraging economic data. The US GDP growth surpassed expectations in the fourth quarter and weekly unemployment claims fell to a nine-month low. That apart, solid earnings reports from Tesla (NASDAQ: TSLA) and American Express (NYSE: AXP) also boosted stock prices. For Dow this week, Q4 earnings remain in focus as investors parse the latest results to understand how inflation is affecting businesses and consumers.
This week, the key resistance is located for the index around 34,400, a break above this level will confirm a possible move to 34,900/35,000. On the downside, any meaningful pullback now seems to find some support near the 33,500 zones, below which the slide could further get extended towards the 33,250 and 33,000 regions.
Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-65
