Daily Market Report

The U.S. market extended its advance on Friday as all three major indexes posted a strong performance in June. Technology and artificial intelligence stocks remain the top performers this year. 

The three major averages were up more than 2% each during the past week while looking at the year-to-date gains, we can see that the Nasdaq is by far the strongest index in 2023, the technology sector benchmark is up 31.7% posting its best first half of the year since 1983. In the meantime, the S&P500 has registered its best first half since 2019 by adding 15.9% while the Dow is lagging other indexes as it rose only 3.8%.

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In the FX market, the U.S. Dollar fell last month as investors continue to think that the FED might ease its monetary policy especially after the central bank decided to not raise interest rates during its last meeting for the first time in 15 months. However, Jerome Powell said that the FED is ready to stick to tighter monetary policy by raising interest rates further if inflation remains high. Therefore, investors are looking to the upcoming FOMC meeting to get more guidance about the future of the monetary policy in the U.S. 

On the other side, gold managed to rebound by the end of last week after reaching a low of $1893 per ounce. Technically, the yellow metal remains under pressure, however, when looking at the bigger technical picture we can see that the main trend is still up while the short-term trend is bearish, and any advance is expected to stay limited while prices continue to trade below the 1937 resistance. On the flip side, a break below last week’s lows can trigger fresh selling in gold towards the 1885-1870 support zone.
Likewise, WTI crude managed to recover closing higher above the $70 mark. From a technical standpoint, oil prices are still stuck inside a wide range as we can see in the chart below with $67.00 a barrel acting as the main support. Sellers need to wait for a break below this level to validate a new wave of decline, otherwise, oil is likely to stay supported in the coming days and a retest of 72.50 weekly resistance cannot be ruled out.

Looking at the major economic releases for this week, the focus will be on the U.S. non-farm payrolls. Moreover, traders will be looking for Canada’s jobs report alongside the Reserve Bank of Australia rate decision which is expected to leave interest rates unchanged at 4.10%.  

In the U.S., the Non-Farm payrolls are set to decline from 339K to 222K only. Moreover, the unemployment rate is expected to fall from 3.7% to 3.6%. Finally, the average hourly earnings are due to remain unchanged at 0.3%.


Economic Analyst
Amine Hiani

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