Market News

EURUSD Weekly Report

The euro is still in the downtrend channel that started from May 4 until now, as the euro opened last week at the level of 1.0852, and reached its highest level at 1.0903, and its lowest level was at 1.0759, and the closing price EURUSD Weekly Report was at the level of 1.0793.
The most important economic events that affected the euro last week

1. Trade Balance news was released at noon on May 16th positively for the euro, and despite its positive issuance, it affected the euro negatively, as the euro fell from the price of 1.0903 to the price of 1.0854, contrary to expectations.
2. Empire State Manufacturing Index: The Empire State Manufacturing Index is one of the factors affecting the assessment of economic activity in the New York region. If the indicator indicates strong growth in the manufacturing sector, this could boost confidence in the economy and lead to capital inflows into the region and thus strengthen the dollar against the euro.
3. Claimant Count Change: This indicator reflects the change in the number of claimants for unemployment benefits in the United Kingdom. If the number of claimants rises significantly, this could mean a slowdown in the labor market and lower economic growth. This could lead to weakness in the pound against the euro, as investors could turn to other currencies as a safe haven.
4. Unemployment Claims: This indicator reflects the number of people who applied for unemployment benefits in the United States. If unemployment claims increase significantly, this reflects a downturn in the labor market and could negatively affect the US dollar. In this case, the weakness of the US dollar may support the euro.

The news released last week did not significantly affect the EUR

Economic news that will affect the euro this week
This news will be issued on Tuesday morning, May 23, 2023

1. French Flash Manufacturing PMI
2. French Flash Services PMI
3. German Flash Manufacturing PMI
4. German Flash Services PMI

EURUSD Technical analysis

According to the current technical analysis, the chart shown below indicates that the euro may fall against the US dollar. Selling can start from the current closing price of 1.0794, with consolidation of selling if 1.0743 is breached. The strong support EURUSD Weekly Report line is targeted at 1.0662. It is advised to place a stop loss point at the resistance line 1.0854, as breaching this level will be considered as a sign of the possibility of the pair rising again. The chart should be monitored to identify any changes in trend and make appropriate decisions accordingly.

The current technical data from the chart shown below indicates that the Euro may head higher against the US Dollar. Buying can be started from the current closing price of 1.0793, with consolidation of buying from level 1.0845. The strong resistance line is targeted at 1.0976, and a stop loss point is placed at the support line 1.0713.

GBPUSD Weekly Report

The pound dollar spent last week between a volatile movement in trading between ups and downs, as it opened last week at levels of $1.2450, reached its highest level at $1.2545, and its lowest level at $1.2390, and closed the week at $1.2458.
The most important economic events that affected the GBPUSD last week

1. Change in the number of claimants: This indicator reflects the change in the number of people who applied for unemployment benefits. If jobless claims increase significantly, this could indicate weakness in the labor market and slowdown in economic growth. In this case, the pound sterling may be negatively affected as a result of the reduction in demand for it as a currency.
2. Unemployment Claims: This indicator reflects the number of people applying for unemployment benefits in a specific country. If jobless claims increase, this could reflect a slowdown in the labor market and an economic slowdown. This situation may negatively affect the pound sterling and undermine its strength.
3. Basic retail sales: This indicator reflects the volume of sales in the retail sector after excluding non-essential factors such as food and fuel. If core retail sales rise significantly, this could reflect strength in consumer spending and support economic growth. In this case, the pound sterling may be affected positively as a result of the increased demand for it.

Economic news that will affect the Bund this week

1. Flash Manufacturing PMI
2. Flash Services PM
3. BOE Gov. Bailey Speech

GBPUSD Technical analysis

Based on the chart attached below, it is clear that the pound dollar is showing a downward trend. Thus, a logical sale could be considered, by selling the pair from the current closing area at 1.2458. Hence, selling can be strengthened from the level of 1.2391, and continue to drop to target the level of 1.2300. Note that the level of 1.2539 represents an appropriate and acceptable stop-loss area, as the deal is automatically exited if the price reaches this level.

On the other hand, in the case of testing the opposite direction, we will buy from the closing area at the level of 1.2458 and consolidate the purchase from the area of 1.2523, so we can target the level of 1.2639, and the stop loss level should be placed at the level of 1.2335.

Gold Weekly report

Gold is still taking the downward trend, as it opened the week at $2007 an ounce, reached its highest level at $2021 an ounce, and its lowest level reached $1951 an ounce, and closed the week at $1961 an ounce.

Last week, the gold market witnessed slight price volatility as a result of some impactful economic news. Among this news:

1. Empire State Manufacturing Index: This index reflects the activity of the manufacturing sector in the United States. If the index is above 50, it indicates expansion of the manufacturing sector. If there is a strong expansion in the manufacturing sector, this could indicate a higher demand for the precious metal as part of the wealth preservation balance. Thus, this may lead to an increase in gold prices.
2. Basic Retail Sales M/M: This data reflects the volume of sales in the retail sector in a given month after excluding non-essential factors. If core retail sales rise significantly, this could indicate strong growth in the economy and could lead to an increase in demand for gold as a safe haven and a way to preserve value amidst economic turmoil. Conversely, if there is a slowdown in sales
3. M/M retail sales

• A strong economy: If retail sales rise significantly, this generally indicates strong growth in the economy and increased consumer spending. In the case of strong economic growth, the demand for safe havens such as gold could decline, which could negatively affect its prices.
• Inflation: If retail sales are rising significantly and this is accompanied by an increase in inflation, the demand for gold may rise as it is considered a hedge against inflation. In this case, the positive news on retail sales may affect the rise in gold prices.

Given the economic events scheduled to take place this week, the following events could affect the performance of the gold price:

1. Flash Manufacturing PMI
2. Flash Services PMI
3. FOMC Meeting Minutes
4. Prelim GDP q/q
5. Unemployment Claims

Gold Technical analysis

Based on the chart shown below for the safe haven gold, we notice that the prices are moving in a downward direction.
From the chart, we can make the decision to sell, and we will enter the selling process from the closing point at the price of 1961, and reinforce the sale from the point of 1945.
Likewise, we target 1913 as a profit-taking area, where strong support is expected. We will set the stop loss at 1993 to reduce the risk.

On the other hand, if we test the direction opposite to our expectations, we will buy from the closing area at the 1963 level and strengthen the purchase from the 1980 area, so we can target the 2018 level, and the stop loss level should be placed at the 1930 level.

Oil Weekly Report

Last week, oil witnessed fluctuations in prices, as the week opened at $70.00 a barrel, its highest level reached $73.48 a barrel, and its lowest level reached $69.33 a barrel, and the week closed at $72.48 a barrel.

Last week, the oil market witnessed slight price volatility as a result of some impactful economic news. Among these news:

1. Empire State Manufacturing Index: This index reflects the activity of the manufacturing sector in the United States. If the index is above 50, it indicates expansion of the manufacturing sector. If there is a strong expansion in the manufacturing sector, this could indicate a higher demand for the precious metal as part of the wealth preservation balance. Thus, this may lead to an increase in gold prices.
2. Basic Retail Sales M/M: This data reflects the volume of sales in the retail sector in a given month after excluding non-essential factors. If core retail sales rise significantly, this could indicate strong growth in the economy and could lead to an increase in demand for gold as a safe haven and a way to preserve value amidst economic turmoil. Conversely, if there is a slowdown in sales
3. Retail Sales M/M: If retail sales rise significantly, it generally indicates strong growth in the economy and increased consumer spending. In the case of strong economic growth, the demand for safe havens such as gold could decline, which could negatively affect its prices.

Given the economic events scheduled to take place in the coming week, the following events could affect the performance of the oil price:

1. Flash Manufacturing PMI
2. Flash Services PMI
3. FOMC Meeting Minutes
4. Prelim GDP q/q
5. Unemployment Claims

OIL Technical analysis

Based on the oil chart shown below, we notice that the prices are making weak movements. Therefore, we will sell from the closing point at $72.48 a barrel and consolidate the sale from the point of $70.76 a barrel. Likewise, we target $67.39 per barrel as a profit-taking area, and we will place a stop loss at $75.46 per barrel to minimize risks.

On the other hand, in the event that the opposite direction is tested for our expectations, we will buy from the closing area at the level of $72.56 a barrel, and we will strengthen the decision to buy from the area of $73.74 a barrel, and therefore we can target the level of $77.08 a barrel, and the stop loss level should be placed at the level of 70.13 dollars per barrel.

Dow Jones Weekly Report

Last week, the Dow Jones index witnessed fluctuations in prices and generally tended to the downside, as it opened the week at the level of $33,249, reached its highest level at $33,647, and its lowest level at $32,995, and closed the week at $33,592.

Dow Jones Technical analysis

Based on the chart shown below, we notice that the prices are moving in a narrow and fluctuating range. Therefore, we will buy from the closing point at 33592 and consolidate the sale from the point 33778. Likewise, we target 34023 as a profit-taking area, and we will place a stop loss at 33291 to reduce the risk.

On the other hand, in the case of testing the direction opposite to our expectations, we will sell from the closing area at the level of 33591 and strengthen the sale from the area 33343, and therefore we can target the level of 33006, and the stop loss level should be placed at the level of 33898.