Daily market report

Major U.S. indexes closed lower on Monday as risk-off sentiment resumed. 
The Dow ended the day slightly lower losing 0.04%, the S&P500 fell 0.45% while the Nasdaq slid 1.16% as technology stocks extended their decline after a strong performance in the past weeks. Some big names like Meta, Alphabet, and Nvidia lost more than 3% each, meanwhile, Tesla stocks faced heavy selling pressure and declined 6% after Goldman Sachs downgraded the EV maker.

daily analytics
Moreover, we have seen a quiet trading session for currencies and commodities due to the lack of economic releases. The U.S. dollar was little changed while gold prices continue to trade between the 1920 and 1934 levels in the near- term. The trend remains bearish; however, we can see a slowdown in the bearish momentum which can lead to a potential retracement to the upside. Today, a successful break above Friday’s high at the 1937 level is needed to confirm an extension higher in the direction of the 1950-1955 zone. On the opposite, a daily close below 1920 support can lead to another retest of last week’s lows at the 1910 level.
Similarly, oil prices are trading sideways between the 67.00 support and 72.50 resistance. We will be waiting for an exit outside the current range before confirming the next directional move. Technically, a breakthrough over the resistance mentioned above should expose the next barrier located between $74 and $74.50 while a breakdown below the key support can lead to another wave of decline towards the 64.25 weekly support.

Looking at today’s economic calendar, FX traders will be looking for the latest inflation figures from Canada. The monthly CPI is expected to have declined from 0.7% to 0.4% due to the recent series of rate hikes by the Bank of Canada. In the U.S., forecasts are pointing to lower durable goods orders which are expected to drop from 1.1% down to -0.8%. 
In addition, new home sales are due to fall from 683K to 677K, on the other side, surveys are showing an increase in the CB consumer confidence index which is expected to rise from 102.3 to 103.9.


Economic Analyst
Amine Hiani

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