WEEKLY SNAPSHOT

Manufacturing (Apr), EUR

WHEN:                                                                 WHAT IT HAD INFLUENCED:

23 MAY 2023                                                              GBP and its subsequent pairs

WHAT HAPPENED: The Manufacturing Purchasing Managers’ Index (PMI) is a diffusion index incorporating survey results provided by manufacturing firms throughout the region. A reading above fifty suggests the manufacturing sector is expanding, while a reading below fifty suggests the manufacturing sector is in contraction. Policymakers and traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, rather than waiting for the hard data to emerge.

GDP (QoQ) (Q1), U.S.

WHEN:                                                                 WHAT IT HAD INFLUENCED:

25 MAY 2023                                                               USD and its subsequent pairs

WHAT HAPPENED: Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services the economy produces. It is the broadest measure of economic activity and the primary indicator of the economy’s health.

USDZAR is currently in the upward channel. Further upside can be seen in the coming week.

Manufacturing PMI, AUD

WHEN:                                                                 WHAT IT HAD INFLUENCED:

23 MAY 2023                                                               AUD and its subsequent pairs

WHAT HAPPENED: The Australian Manufacturing Purchasing Managers Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; below indicates contraction. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.  

AUDUSD is trading in a downward channel. The further downside can be seen in the coming week.

Gold is down for a third week; analysts claim the upside is only partially broken.

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: Gold bulls are still counting on another record high if the Chicken Little metaphor of saving the world — or more precisely, the U.S. economy, from a government debt default or recession — doesn’t come true. Yet, the path of least resistance for the yellow metal over the past three weeks has been lower.

Gold for June delivery on New York’s Comex settled Friday’s session at $1,944.30 an ounce, up just 60 cents, or 0.03%, on the day. The benchmark gold futures contract fell to a nine-week low of $1,936.90 earlier in the session, after hitting an all-time high of $2,085.40 on May 4. For the week, June gold was off 2% after another 2% loss the prior week and 0.25% the week before that.

The spot price of gold which reflects physical trades in bullion and is more closely followed than futures by some traders, was at $1,945.04 by 14:00 ET (18:00 GMT) on Friday, up $4.19, or 0.2% on the day. Spot gold fell to a three-week low of $1,936.85 during the session, after a record high of $2,073.29 earlier this month, according to Investing.com data. Spot gold was down 1.7% for the week, after another 1.7% loss the prior week and 0.3% the week before.

Gold was pressured Friday after the Federal Reserve’s favorite gauge for U.S. inflation came in hotter-than-forecast for April, indicating that the central bank will raise interest rates again in June and July versus expectations for a pause.

GOLD is trading in a down channel; a downside will be seen in the coming days.

Oil prices increase as the US nears a debt agreement

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED:

Oil prices ticked up on Friday as U.S. officials appeared close to striking a debt-ceiling deal, and as the market weighed conflicting messages on supply from Russia and Saudi Arabia ahead of the next OPEC+ policy meeting.

Brent crude settled 69 cents, or 0.9%, higher at $76.95 a barrel. U.S. West Texas Intermediate closed 84 cents, or 1.2%, at $72.67 a barrel.

On a weekly basis, both benchmarks posted a second week of gains with Brent climbing 1.7%, while WTI rose 1.6%.

Still, markets remained cautious as debt talks may drag on. There are fresh worries about a Federal Reserve interest rate hike next month that would curb demand after strong U.S. consumer spending data and inflation readings.

While it is possible negotiators will reach a deal on Friday to raise the U.S. government’s $31.4 trillion debt ceiling, talks could easily spill over into the weekend, a Biden administration official said.

Benchmarks had settled more than $2 per barrel lower on Thursday after Russian Deputy Prime Minister Alexander Novak played down the prospect of further OPEC+ production cuts at its meeting in Vienna on June 4.

WTI CRUDE OIL is trading in a down channel; a downside will be seen in the coming days.

Total Crypto Market Cap Reaches $1.16 Trillion, A Small Decline

WHAT IT HAD INFLUENCED:

BITCOIN

WHAT HAPPENED: The total market capitalization of the cryptocurrency market has dropped $1.16 trillion amid slowing market volatility. Data from the cryptocurrency aggregation platform, Coin Gecko shows the total crypto market cap reached a yearly high of $1.34 trillion in the middle of April 2023.

The total crypto market capitalization measures the cumulative value of all circulating cryptocurrencies. Crypto analysts use it to gauge the health of the cryptocurrency market and to check the rate of capital inflow or outflow per time.

As of writing, the $1.16 trillion total crypto market cap on Coin Gecko comprised the individual market caps of 10,240 tokens in 103 categories across 745 exchanges

In the last 24 hours, the total crypto market cap gained 1.24%. However, compared to one year ago, it is still lower by 9.6%. Also, at $1.16 trillion, the value hovers around its low price for May 2023, having attained a monthly high of $1.27 trillion

Bitcoin remains the dominant cryptocurrency with a market cap of $514 billion, reflecting 44.32% of the total crypto market cap, per Coin Gecko. Ethereum claims 18.75%, while Stablecoins share 7.17% of the entire crypto market cap.

Bitcoin is trading in a down channel; a downside will be seen in the coming days.  

5 KEY EVENTS TO WATCH OUT

Consumer Confidence (MAY) U.K.

WHEN:                                                                           WHAT IT INFLUENCES:

30 MAY 2023                                                               GBP and its subsequent pairs

WHAT’S HAPPENING: Consumer Confidence gauges the sentiment amongst consumers across the eurozone. A rising trend is often correlated with more substantial consumption expenditure boosting GDP.

A reading that is stronger than the forecast is generally supportive (bullish) for the EUR, while a weaker-than-forecast reading is generally negative (bearish) for the EUR.

CB Consumer Confidence (May), U.S.

WHEN:                                                                           WHAT IT INFLUENCES:

30 MAY 2023                                                               USD and its subsequent pairs

WHAT’S HAPPENING: Conference Board (CB) Consumer Confidence measures consumers’ confidence in the economy. When consumers are optimistic, they tend to spend more which increases consumption and overall economic growth.

A reading that is stronger than forecast is generally supportive (bullish) for the USD, while a weaker-than-forecast reading is generally negative (bearish) for the USD

Construction Work Done (QoQ) (Q1) AUD

WHEN:                                                                           WHAT IT INFLUENCES:

31 MAY 2023                                                              AUD and its subsequent pairs

WHAT’S HAPPENING:  Construction Work Done reports the change in the total value of completed construction projects throughout Australia versus the prior quarter. It provides an advance indication of trends in building and engineering construction activity. The data is an estimate based on a survey of approximately eighty percent of the value of both building and engineering work performer over the course of the prior quarter.

A reading that is stronger than the forecast is generally supportive (bullish) for the AUD, while a weaker-than-forecast reading is generally negative (bearish) for the AUD.

GDP (MoM) (Mar), CAD

WHEN:                                                                         WHAT IT INFLUENCES:

31 MAY 2023                                                            CAD and its subsequent pairs 

WHAT’S HAPPENING:  Gross Domestic Product (GDP) reports the annualized change in the inflation-adjusted value of all goods and services produced by the Canadian economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health. Canada releases fresh GDP data monthly.

A reading that is stronger than the forecast is generally supportive (bullish) for the CAD, while a weaker-than-forecast reading is generally negative (bearish) for the CAD.

Building Consents (MoM) (Apr), NZD

WHEN:                                                                          WHAT IT INFLUENCES:

30 MAY 2023                                                              NZD and its subsequent pairs

WHAT’S HAPPENING: Building Consents (also known as Building Permits) measure the change in the number of new building permits issued by the government relative to the prior month. Building consents are a forward-looking indicator of new home construction.

A reading that is stronger than forecast is generally supportive (bullish) for the NZD, while a weaker-than-forecast reading is generally negative (bearish) for the NZD.

EQUITIES IN THE COMING WEEK

1. BROADCOM INC, (AVGO) is to announce its Quarterly Results on 01 JUNE 2023, EPS is estimated to be 10.12 per share while revenue is estimated at 8.703B.
2. SALESFORCE, INC. (CRM) to announce its Quarterly Results on 31 MAY 2023, EPS estimated to 1.61 per share while revenue estimated 8.176B.
3. VMWARE, INC. (MDT) to announce its Quarterly Results on 01 JUNE 2023, EPS estimated to 1.55 per share while revenue estimated 3.312B.
4. HP INC. (HPQ) is to announce its Quarterly Results on 30 MAY 2023, EPS is estimated to be 0.76 per share while revenue is estimated at 13.073B.
5. VEEVA SYSTEMS INC. (VEEV) to announce its Quarterly Results on 31 MAY 2023 EPS estimated 0.79 per share while revenue estimated 515.877M.

TOP COMMODITIES IN THE COMING WEEK

 GOLD

GOLD is trading in a down channel; a downside will be seen in the coming days. 

SILVER

SILVER is trading in a down channel; a downside will be seen in the coming days.

 BRENT CRUDE OIL

BRENT CRUDE OIL is trading in the down channel; a downside will be seen in the coming days.

TOP CRYPTO IN THE COMING WEEK

 BTCUSD

BTCUSD is trading in a down channel; a downside will be seen in the coming days

LITECOIN

LITECOIN is trading in an up channel; an upside will be seen in the coming days.  

 TOP CURRENCY IN THE COMING WEEK

 EURUSD

EURUSD is trading in a down channel; a downside will be seen in the coming days.

GBPUSD

GBPUSD is trading in a down channel; a downside will be seen in the coming days.

AUDUSD

AUDUSD is trading in the down channel; a downside will be seen in the coming days.

TOP INDEX IN THE COMING WEEK

 DOW JONES

DOW JONES is trading in a down channel; a downside will be seen in the coming days.

 FTSE 100

FTSE 100 is trading in an up channel; an upside will be seen in the coming days.

  DATA WATCH