Another week of Euro Downtrend
Overview:
For the fourth week of May, the euro continues to decline, which began since the beginning of the month on May 4, 2023, as it opened this week at a price of 1.0806, and reached its highest price at the level of 1.0830, and the lowest price reached at 1.0706, and the euro closed the week at the level of 1.0747
Among the most important economic news that affected the euro in the past week:
Consumer Confidence Index: This news had a positive impact on the euro, as the euro price increased by 35 points on Monday, May 22, 2023 evening, from the price of 1.0795 to the price of 1.0820.
Manufacturing PMI in France: This news had a positive impact on the euro, as the euro rose on Tuesday, May 23, 2023 in the morning, slightly rising from 1.0794 to 1.0807.
Services Purchasing Managers’ Index (PMI) in Germany: which was released after the release of the Manufacturing PMI in France, 15 minutes after its release. It had a negative impact on the euro, despite its issuance higher than before, but it had a negative impact that brought it back to the original bearish direction, as it fell from 1.0807 to 1.0769.
Among the most important economic news that will affect the euro in the coming week:
The trading week begins on Monday, May 29, 2023, with the Whit Monday holiday, which includes Europe and the United States of America.
Preliminary reading of the German CPI: It will be issued on Wednesday, May 31, 2023. If this indicator is issued higher than the previous one, it will have a positive impact on the currency, and if it is issued lower than the previous one, it will negatively affect the currency.
The general budget of the French government: It will be issued on Thursday, June 1, 2023. If it is issued higher than the previous one, it will have a positive impact on the currency, and if it is issued lower than the previous one, it will negatively affect the currency.
Technical analysis of the euro dollar
The euro is trading against the US dollar in a general downward trend. As the chart below shows, accordingly, we expect the euro to continue its decline, as we will sell from the price of 1.0737 dollars, with the strengthening of the selling point at the level of 1.0670, with the target being the area of 1.0767 dollars. It is also recommended to choose the $1.0818 area as a stop-loss point to control risks.
On the other hand, if the stop loss area at $1.0818 is broken, the euro price may head towards $1.0965.
The Pound dollar continues to fall
Overview:
The pound dollar continues to decline for the third week, starting from May 10, as the euro opened the week at a price of 1.2446, and reached its highest price at 1.2470, and the lowest price it reached was 1.2306, and the euro closed the week at a price of 1.2354.
Economic news that affected the Bund dollar last week:
UK Manufacturing Purchasing Managers’ Index (PMI): This indicator was released on Tuesday, May 23, 2023 in the morning, as it was released less than the previous one, but it did not have a clear impact.
Consumer Price Index (CPI) in the United Kingdom annually: The index was released on Wednesday, May 24, 2023 in the morning, as it was released less than the previous one, and it had a negative, but weak impact.
Economic news that will affect the Bund dollar this week:
The trading week begins on Monday, May 29, 2023, with the Whit Monday holiday, which includes Europe and the United States of America.
BRC Store Prices Index y / y: This indicator will be released on Tuesday, May 30, 2023 in the morning. If it is higher than the previous one, its effect will be positive, and if it is lower, its effect will be negative.
Technical analysis of the dollar Pound
The Bund against the US dollar is in a general downtrend. As the chart below shows, accordingly, we expect the Pound to continue to decline, as we will sell from the price of 1.2354 dollars, with the strengthening of the selling point at the level of 1.2284, with a target of 1.2195 dollars. It is also recommended to choose the $1.2476 area as the stop loss point to control the risks.
On the other hand, if the stop loss area at $1.2476 is broken, the bond price may head towards $1.2640.
The decline of gold from 2050 to 1950 and continues
Overview:
The safe haven’s decline continues since May 10, 2023, and gold opened the week at the price of 1977, and it reached its highest price at 1985, and the lowest price gold reached at 1936, and it closed at the price of 1941
The economic news that affected gold last week
The US Industrial Purchasing Managers’ Index (PMI): This index was released on Tuesday, May 23, 2023 in the evening. It was lower than the previous one, and this negatively affected the dollar and had a positive impact on gold, as gold rose from the price of 1958 to the price of 1973.
US Quarterly Gross Domestic Product Index: This index was released on Thursday, May 25, 2023 in the evening. It was released higher than the previous one, and it had a positive impact on gold, as gold rose from the price of 1943 to the price of 1953.
Economic news that will affect gold this week
The trading week begins on Monday, May 29, 2023, with the Whit Monday holiday, which includes Europe and the United States of America.
US Consumer Confidence Index CB: This news will be released on Tuesday, May 30, 2023 in the evening. If the news is higher than the previous one, it will have a positive effect on the dollar and will be reflected on gold, and vice versa.
US Manufacturing Price Index (ISM): This news will be released on Thursday, June 1, 2023 in the evening. If the news is released and it is higher than expected, it will have a positive impact and be reflected on gold, and vice versa.
Technical analysis of gold
The safe haven is going through a decline in the past weeks and continues in a general downward trend. As the chart below shows, accordingly, we expect gold to continue to decline, as we will sell from the price of $1941, with the strengthening of the selling point at the level of 1921, with the target being the $1890 area. It is also recommended to choose the $1979 area as the stop-loss point to control the risks.
On the other hand, if the stop loss area at $1979 is broken, gold price may head towards the $2000 level.
A volatile week for oil between ups and downs
Overview:
Oil spent the past week between rising and falling prices, as oil opened the week last week at a price of 71.81, reaching a high of 74.65, and a low of 70.60. Oil closed the week at a price of 72.41.
Economic news that affected oil last week
Canadian monthly retail sales index: This index was released on Tuesday, May 23, 2023, higher than the previous one, and this has a positive effect on the Canadian dollar and oil, as the oil price increased from 72.58 to 73.66.
US Crude Oil Inventories Index: This index was released on Wednesday, May 24, 2023 in the evening. It was released less than expected and had a negative impact, as the price decreased from 74.52 to 73.05.
Economic news that will affect oil this week
The trading week begins on Monday, May 29, 2023, with the Whit Monday holiday, which includes Europe and the United States of America.
US Crude Oil Inventories Index: This index is released weekly on Wednesday. If it is higher than expected, it will have a positive impact on oil prices, and vice versa.
Canada’s Gross Domestic Product Index: This index will be released on Wednesday, May 31, 2023. If this news is released, it will be higher than expected, and its impact will be positive on the Canadian dollar, and therefore on oil.
Technical analysis of oil
Oil spent the past week fluctuating between a drop and a rise, with bullish strength. As the chart below shows, accordingly, we expect oil to rise, as we will buy from the price of $72.41 a barrel, with strengthening the purchase point at the level of $73.90 a barrel, with the target at $75.83 a barrel. It is also recommended to choose the $70.84 per barrel area as a stop-loss point to control risks.
On the other hand, if the stop loss area at $70.84 per barrel is broken, gold price may head towards $68.00 per barrel.
The Dow Jones index bounced back to the upside
Overview:
The Dow Jones index spent in a downward trend before the end of the week and returned to rise again, as it opened the week at the price of 33381, and reached its highest price at the level of 33509, and the lowest price it reached at the level of 32571, and the index closed at the price of 33084.
Economic news that affected the Dow Jones index
New Home Sales Index in the United States: This news was released on Tuesday, May 23, 2023 in the evening, as it was released higher than expected, and this has a positive effect on the currency, but it had no effect on the index.
The Initial Unemployment Claims Index in the United States: This news was released on Thursday, May 25, 2023 in the evening.
The Core Personal Consumption Expenses Price Index in the United States: This news was released on Friday, May 26, 2023 evening. It was higher than expected and had a positive impact, as the Dow Jones rose again from the price of 32779 to the price of 33153.
Economic news that will affect the Dow Jones index
The trading week begins on Monday, May 29, 2023, with the Whit Monday holiday, which includes Europe and the United States of America.
US Industrial Purchasing Managers’ Index (PMI): This news will be released on Thursday, June 1, 2023 in the evening. If it is released higher than expected, it will have a positive impact on the dollar and the US economy, and vice versa.
Technical analysis of the Dow Jones index
The Dow Jones index spent the past week in a downward trend, and then reversed the trend to rise. As the chart below shows, accordingly, we expect the Dow Jones to rise, as we will buy from the price of $33083, with strengthening the purchase point at the level of $33268, with the target at $33584. It is also recommended to choose the $32,804 area as a stop-loss point to control risks.
On the other hand, if the stop loss area at $32,804 is broken, the Dow Jones price may head towards $32,480.
