Daily Market Report

The U.S. market is set to reopen today after being closed on Tuesday for independence day holiday. Investors will be looking for a set of important economic releases which are likely to trigger an increase in volatility.
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Market participants are expecting the FED’s latest meeting minutes scheduled later today to provide further guidance about the interest rates future path. It is important to note that Jerome Powell said that the FED is ready to stick to tighter monetary policy by raising interest rates further if inflation remains high in the coming months. Moreover, factory orders are expected to have risen from 0.4% to 0.7%. Meanwhile, in Europe, the manufacturing sector will be on the watch as several PMI figures will be released from France, Spain, Italy, and the UK.  
In addition, Oil traders will keep an eye on the OPEC meeting as more production cuts are expected which can impact the short-term price action of Oil.

In the futures market, all three major indexes fell on low liquidity as Wall Street is set to resume trading today, likewise, the Asian market declined after the release of private surveys on services activity in both Japan and China that showed a slowdown in the pace of economic growth.

In the FX market, the U.S. Dollar was little changed against other major currencies as traders await the FOMC meeting minutes. The USDJPY pair is still in a strong uptrend despite that the latest movement is considered as extended to the upside. Therefore, any decline should be considered temporary in this pair as the Japanese Yen remains one of the weakest currencies YTD due to the Bank of Japan’s current monetary policy measures.
Looking now at gold’s recent price development, we can see that the upside potential in the yellow metal remains limited as long as prices continue to trade below the 1932-1937 resistance zone and only a daily close above it can increase the odds of a potential bullish reversal in the near term. On the opposite, the main support is located at $1910 and a break below it might trigger a continuation lower in the direction of the 1900 psychological support followed by the 1885 level in extension.
Finally, as mentioned in our previous report, we can see that WTI crude prices are still stuck inside a wide range located between $67.00 and $74.50 a barrel. Therefore, sideways trading is likely to continue in the coming days until we see an exit outside of this band. In the short-term, the 72.50 level is acting as the main barrier for prices while 69.80 is considered an important support. As a reminder, volatility is expected to rise later today during the OPEC meeting.
امين-حياني
 

Economic Analyst
Amine Hiani

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