Daily market report

U.S. stocks finished lower for the second consecutive day after markets were closed on Monday due to the Juneteenth holiday. All three major stock indexes retreated as the latest FED rate decision started to weigh on investors’ sentiment. The Dow declined 245 points ending the day 0.72% lower, the S&P500 lost 0.47% dragged down by stocks in the energy sector. Meanwhile, the Nasdaq composite dropped 0.16%.
market daily report
On the other side, the U.S. Dollar was stronger against a basket of major currencies. The greenback benefited from expectations of tighter monetary policy as the FED is due to deliver two more rate hikes later this year. In addition, the recent U.S. housing data came out above expectations as we have seen a rise in both building permits and housing starts figures.
Therefore, gold faced renewed selling pressure after failing to clear its short-term resistance located near $1960 per ounce. The yellow metal fell nearly $30 from its intraday high reaching a low of $1930 which represents a key technical support for prices. Consequently, traders should keep an eye on this level as a breakdown below it is likely to trigger another wave of decline towards the 1918 level followed by 1907 in extension. On the flip side, if this support holds, the gold trend is expected to remain sideways in the coming days.

Moreover, when analyzing the latest technical picture of oil prices, we can see that the WTI  prices remain stuck inside a wide range between $74.00 and $67.00 a barrel, therefore, we will be waiting for a clear break outside of this zone to confirm the next directional move. In the short term, the key resistance is located at $72.40 while important support stands at the 69.80 level.

Looking at today’s important economic releases, the yearly figures of the UK CPI are expected to decline from 8.7% down to 8.5% while the monthly reading is likely to fall from 1.2% to 0.4%.

In Canada, forecasts are pointing to a rise in retail sales from -1.4% to 0.2%.  

Finally, FED chair Jerome Powell is due to speak later today on the economic outlook and recent monetary policy actions in Washington DC.


Economic Analyst
Amine Hiani

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