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DAILY MARKET REPORT

Finally, the most awaited May Federal Reserve FOMC policy meeting decision is due to release today. The meeting outcome could bring extra volatility to the global markets. The FED is expected to hike its benchmark federal funds rate by 50 basis points for the first time since 2000.

DAILY MARKET REPORT

Finally, the most awaited May Federal Reserve FOMC policy meeting decision is due to release today. The meeting outcome could bring extra volatility to the global markets. The FED is expected to hike its benchmark federal funds rate by 50 basis points for the first time since 2000. The U.S. central bank raised its policy interest rate by 25 basis points in March. The Fed is also expected to announce a plan to shrink its roughly $9 trillion balance sheet by $95 billion a month starting in June.

EQUITIES

Wall Street ended slightly higher on Tuesday supported by better-than-expected US factory orders and JOLTs job openings data. The US factory sector posted one of its strongest months ever in March. Factory orders jumped 2.2% in March, the strongest gain since May last year. U.S. Mar JOLTS job openings unexpectedly rose +205,000 to a record 11.549 million.

OIL

Crude oil futures recovered from the previous session's losses following the release of API crude inventory data. The data showed the US crude inventories declined 3.479 million barrels in the week ended April 29th. The oil prices also received additional buying pressure after the European Commission signalled more sanctions against Moscow.

CURRENCIES

In the currency market, The Euro remains under pressure while the US dollar index hovers near the two-decade high reached last month. The safe-haven us dollar was also supported by the recent equity market sell-off. On the other hand, the Australian dollar holding the previous session gains after the recent economic data showed that retail sales in Australia rose by 1.6% in March.

GOLD

The safe-haven metal trades flat on Wednesday as the investors and traders wait for the Federal Reserve meeting outcome. The expected trading range for gold today is between 1830 support and 1920 resistance. At the time of writing, the precious metal trades below $1870.

Economic Outlook

On the data front, retail sales in the Euro Area declined 0.4% mom in March, more than market expectations of a 0.1% drop. Meanwhile, Eurozone Services PMI increased to 57.7 in April of 2022 from 55.6 in March.

Moving ahead today, the important events to watch:

US – ADP employment report: GMT – 12.15

US – ISM services PMI: GMT – 14.00

US – FOMC interest rate decision and statement: GMT – 18.00

Coronavirus update:

Worldwide, more than 514 million people have been confirmed infected and more than 6.23 million have died. The United States has confirmed over 81 million cases and has had more than 993,000 deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For today, the resistance for the pair is above 1.0570, any break over targets 1.0610/30 minimum. On the other side, the immediate support is near 1.0470 and any break will drag the pair to the 1.0440 level.

eurusd

The important levels to watch for today: Support- 1.0470 and 1.0440 Resistance- 1.0570 and 1.0630.

GOLD: For gold, the first nearest support level is located at 1850. In case it breaks below this level, it will head towards the next support level which is located near 1840/28. On the upside, 1880 will act as an immediate and strong hurdle while 1891/95 will be a critical resistance zone because above this, bulls are likely to dominate.

gold neww

The important levels to watch for today: Support- 1850 and 1830 Resistance- 1890 and 1910.

Quote of the day - It takes 150 years to build an investment bank and only five minutes to convince you to sell me preferred stock in it at a 10% interest rate- Warren Buffet.

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DAILY MARKET REPORT

DAILY MARKET REPORT

Federal Open Market Committee, a committee within the Federal Reserve System (the Fed), will release June’s FOMC meeting minutes later today. In the June meeting, FOMC raised interest rates by 75 bps, the biggest increase in three decades.

DAILY MARKET REPORT

DAILY MARKET REPORT

The Reserve Bank of Australia increased its benchmark interest rate from 0.5% to 1.35% on Tuesday and It is the third consecutive month in which the central bank has hiked rates.

DAILY MARKET REPORT

DAILY MARKET REPORT

Precious metals like gold and silver prices extended declines in early trading on Friday. The strong bearish sentiment fueled by fed Chairman Jerome Powell's hawkish stance on Wednesday encouraged dollar bulls and pressured metal prices lower.

DAILY MARKET REPORT

DAILY MARKET REPORT

Global markets remain volatile following the hawkish comments from the central bank chiefs during the European Central Bank's (ECB) annual forum in Portugal. The central bankers have warned that the era of low-interest rates and moderate inflation has come to an end.