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DAILY MARKET REPORT

US Federal Reserve is likely to announce a 75 basis point interest rate hike today. The investors will pay close attention to the update from Jerome Powell about the central bank’s view of the economic outlook as well as clues about the future path of rate hikes.

DAILY MARKET REPORT

The second quarter earnings season continues, and the big tech giants Microsoft and Alphabet announced weaker-than-expected second-quarter earnings results. Today the investors are shifting their focus to the Federal Reserve’s monetary policy meeting.

The FED Monetary Policy Statement is set to be released at 18:00 GMT. Along with this release will see the FED chair Jerome Powell Conference 30-minutes after at 18:30. The central bank is likely to announce a 75 basis point interest rate hike. The investors will pay close attention to the update from Jerome Powell about the central bank’s view of the economic outlook as well as clues about the future path of rate hikes.

EQUITIES

US stock futures were flat on Wednesday morning session as investors and traders took a cautious stance ahead of the most anticipated US FED decision. Meanwhile, the stocks facing limited bearish momentum supported by the easing fears of a 100-basis-point rate hike by the U.S. Federal Reserve.

OIL

Crude oil futures extend the decline in the Asian session despite the release of better-than-expected API inventory data. The data showed that US crude stockpiles declined by 4 million barrels last week. Moving ahead to the North American session, the oil traders should closely monitor the release of the EIA inventory report.

CURRENCIES

In the currency market, the US dollar ended higher on Tuesday while the index struggled to break above the key resistance of 107.30, the future direction of the USD will depend on today’s FED meeting outcome. On the other hand, the British pound remains one of the strongest currencies this week. 

GOLD

The safe haven metal trades flat on Wednesday but the metal recovered the previous session's losses supported by a pullback in the dollar. However, overall momentum remained bearish throughout this month as the central bank's aggressive rate hike policy has dented the bullion’s safe-haven appeal.

Economic Outlook

On the data front, the Australian Bureau of Statistics released the latest inflation data. The data showed the annual inflation rate jumped to the highest level in more than two decades. The CPI rose 6.1% in the second quarter compared to the same period last year, up from 5.1% in the first quarter of the year.

Moving ahead today, the important events to watch:

US – Durable goods orders: GMT – 12.30

US – EIA crude inventories: GMT – 14.30

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

Coronavirus update:

Worldwide, more than 570 million people have been confirmed infected and more than 6.38 million have died. The United States has confirmed over 90.4 million cases and has had more than 1.02 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For Euro, the first nearest support level is located at 1.0100. In case it breaks below this level, it will head towards the next support level which is located near 1.0070. On the upside, 1.0180 will act as an immediate and strong hurdle while 1.0230 will be a critical resistance zone because above this, bulls are likely to dominate.

eurusd

The important levels to watch for today: Support- 1.0100 and 1.0070 Resistance- 1.0180 and 1.0280.

GOLD: For gold, the resistance for the metal remains above 1735, any break over targets 1745/50. On the other side, the immediate support is near 1712 and any break will drag the metal to 1700 and 1696 levels.

gold neww

The important levels to watch for today: Support- 1712 and 1695 Resistance- 1735 and 1750.

Quote of the day - “Use limit orders exclusively-except when placing stops. Be careful what you use: there is no magic solution. Success cannot be bought; it can only be worked on.” Alexander Elder.

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DAILY MARKET REPORT

DAILY MARKET REPORT

Wall Street ends sharply higher on Wednesday after Fed Chairman Jerome Powell signaled that interest rate hikes will slow down in the next meeting. “The time for moderating the pace of rate increases may come as soon as the December meeting.” – Powell said.

DAILY MARKET REPORT

DAILY MARKET REPORT

German consumer prices in November slowed from the prior month while annual inflation in Spain also fell more than expected. Moving ahead, investors should closely monitor the release of Eurozone inflation data.

DAILY MARKET REPORT

DAILY MARKET REPORT

Oil futures recovered from the previous session's lows after Eurasia Group reported that OPEC+ will "seriously consider" a production cut next week. However, investors remain concerned over rising Covid-19 cases in China, which could dent demand for oil as travel is restricted.

DAILY MARKET REPORT

DAILY MARKET REPORT

Today the key focus will turn to the minutes from the latest Federal Reserve meeting as the investors look for clues on future rate hikes by the central bank. During the last meeting, United States Federal Reserve officials delivered their fourth straight 75 basis-point interest rate increase.