Daily Market Report

The U.S. Dollar rose on Wednesday after FED’s chair Jerome Powell said that more restrictive monetary policy is on the way. Powell kept the door open for future rate hikes as inflation levels remain well above the FED’s target. The U.S Dollar was up compared to its major peers as we approach the end of the second quarter and the first half of the year.
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On the other side, the U.S. stock market failed to advance yesterday following Powell’s statement. Senior central bankers were reunited in a panel discussion about monetary policy held in Portugal by the European central bank. Looking at the recent movements in the stock market, the Dow fell 0.22%, in the meantime, the S&P500 ended the trading day slightly below the flatline losing 0.04%, on the opposite, the Nasdaq composite rose 0.27%.
As of today, market participants will be waiting for the release of the quarterly GDP figures from the U.S. which are expected to rise from 1.3% to 1.4%. Moreover, forecasts are pointing to a lower reading in the pending home sales which are likely to have declined from 0.0% down to -0.5%, meanwhile, the latest unemployment claims figures are due to remain unchanged at 264K. In Germany, the preliminary monthly CPI reading is expected to rise from -0.1% up to 0.2%.
In the commodity market, gold extended its decline as the selling pressure remains intact. As we mentioned in our previous reports, the gold trend is still negative in the near term, and we will be waiting for a clear break below yesterday’s low near the 1903 support level to confirm another extension to the downside that can reach the 1890-1880 weekly support zone. On the flip side, a daily close above the 1920 level is needed for a potential retest of the 1935 resistance. Otherwise, sellers are likely to remain in control.
Conversely, WTI crude managed to recover from yesterday’s sell-off closing higher above the $69 mark. Technically, oil prices are still stuck inside a wide range as we can see in the chart below with $70.20 a barrel acting as the nearest resistance. Sellers need to wait for a clear breakdown of the $67.00 support level in the coming days to validate a new wave of decline, otherwise, prices are likely to stay supported in the coming hours.

Economic Analyst
Amine Hiani

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