Weekly Global Markets Technical Analysis Report – 06 June 2021

Weekly Global Markets Technical Analysis Report – 06 June 2021

Manufacturing PMI (May), UK

    WHEN:                                             WHAT IT HAD INFLUENCED:

1st JUNE 2021                                        GBP and its subsequent pairs

WHAT HAPPENED: The 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 50 indicates contraction.

GBPJPY is currently in a parallel channel. It will follow the trend in the coming days.

     Nonfarm Payrolls (May), U.S

     WHEN:                                              WHAT IT HAD INFLUENCED:

     4th JUNE 2021                                          USD and its subsequent pairs

WHAT HAPPENED: Nonfarm Payrolls measures the change in the number of people employed during the previous month, excluding the farming industry. Job creation is the foremost indicator of consumer spending, which accounts for the majority of economic activity.

USDJPY is currently in an up channel further upside will be seen in the coming days.

Household Spending (YoY) (Apr), JAPAN  

WHEN:                                              WHAT IT HAD INFLUENCED:

 3rd JUNE 2021                                          JPY and its subsequent pairs 

WHAT HAPPENED: Household Spending measures the change in the inflation-adjusted value of all expenditures by consumers.

EURJPY is currently in an up channel further upside will be seen in the coming days.

Gold Ends Week Below $1,900 Despite Mixed U.S. Jobs Picture

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: The gold bull could have been asking that for the umpteenth time as the yellow metal couldn’t muster a second straight weekly close above $1,900 on Friday, despite incessant noise across markets about price pressures.

A mixed U.S. jobs picture did help activate gold’s other quality — safe-haven — helping it crawl out of the near mid-$1,800 levels it tumbled to on Thursday.

Yet, both futures and the spot price of bullion stopped just shy of attempting to return to the $1,900 berth that would have bolstered the confidence of gold longs going into the new week.

The front-month gold futures contract on New York’s Comex settled at $1,892 per ounce, up $18.70, or 1%. Friday’s session peak was $1,898.90. For the week though, the front-month contract fell 0.7%.

GOLD is trading in the up channel; further upside will be seen in the near term if it sustains in the channel.

Oil hits two-year high on OPEC+ discipline, demand hopes

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Oil extended gains on Friday, with Brent topping $72 a barrel for the first time since 2019, as OPEC+ supply discipline and recovering demand countered concerns about a patchy COVID-19 vaccination rollout around the globe.

The Organization of the Petroleum Exporting Countries and allies on Tuesday said they would stick to agreed supply restraints. A weekly supply report on Thursday showed U.S. crude inventories dropped more than expected last week. 

Oil extended gains after U.S. figures showed nonfarm payrolls increased by 559,000 jobs last month. The U.S. dollar weakened after the report, making oil cheaper for holders of other currencies and lending support to oil prices.

Brent crude rose 58 cents, or 0.8%, to settle at $71.89 a barrel, after touching $72.17, its highest since May 2019.

U.S. West Texas Intermediate crude rose 81 cents, or 1.2%, to settle at $69.62. The session high was $69.76, its highest since October 2018.

WTI CRUDE OIL was trading in the up channel but after breaking the channel upside further upside can be seen in the coming days.

Ethereum Could Soon Steal Bitcoin’s Thunder as Inflationary Hedge

WHAT IT HAD INFLUENCED:

ETHEREUM

WHAT HAPPENED: Ethereum is still well below its May highs, but a hotly anticipated update expected in the coming weeks could pit it against bitcoin as a destination for institutional dollars seeking a hedge against inflation.

“The main goal of the 1559 Ethereum improvement proposal, or the London fork [expected to kick off July] is to change how users make transactions on Ethereum, and we believe that it should be very positive for the price of ETH,” Amber Ghaddar, PhD, Founder AllianceBlock said in an interview with investing.com.

The Ethereum community is betting big that this fork will give ether, or ETH, the token used to fund operations on the Ethereum network, that all-important scarcity factor that could see it ride the same wave of institutional demand that bitcoin has enjoyed.

At its core, the update will divide transaction fees on Ethereum into base fees and tips. The base fees will be burned, or destroyed, cutting the amount of the ETH in supply, keeping inflation in check.

ETHEREUM is trading in an up channel. Further upside can be seen in the coming weeks.

5 KEY EVENTS TO WATCH OUT

     JOLTs Job Openings (Apr), US

 WHEN:                                                              WHAT IT INFLUENCES:

 8th JUNE 2021                                                   USD and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: A survey done by the US Bureau of Labor Statistics to help measure job vacancies. It collects data from employers about their businesses’ employment, job openings, recruitment, hires and separations.

JOLTS defines Job Openings as all positions that are open (not filled) on the last business day of the month.

A higher-than-expected reading ought to be taken as positive/bullish for the USD, whereas a lower-than-expected reading should be taken as negative/bearish for the USD.

     Manufacturing Production (MoM) (Apr), UK

WHEN:                                                                WHAT IT INFLUENCES:

11th JUNE 2021                                                       GBP and its subsequent 

                                                                              pairs

WHAT’S HAPPENING: Manufacturing Production measures the change in the total inflation-adjusted value of output produced by manufacturers. Manufacturing accounts for approximately 80% of overall Industrial Production.

A higher-than-expected reading ought to be taken as positive/bullish for the GBP, whereas a lower-than-expected reading should be taken as negative/bearish for the GBP.

    GDP (QoQ) (Q1), JAPAN

WHEN:                                                               WHAT IT INFLUENCES:

7th JUNE 2021                                                   JPY and its subsequent 

                                                                             pairs

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

A higher-than-expected reading ought to be taken as positive/bullish for the JPY, whereas a lower-than-expected reading should be taken as negative/bearish for the JPY.

Unemployment Rate n.s.a. (May), SWITZERLAND 

WHEN:                                                                WHAT IT INFLUENCES:

7th JUNE 2021                                                      CHF and its subsequent 

                                                                              Pairs 

WHAT’S HAPPENING:  The unemployment rate represents the number of unemployed persons expressed as a percentage of the labour force. 

A higher-than-expected reading ought to be taken as negative/bearish for the CHF, whereas a lower-than-expected reading should be taken as positive/bullish for the CHF.

NAB Business Confidence (May), AUSTRALIA

WHEN:                                                               WHAT IT INFLUENCES:

7th JUNE 2021                                                    AUD and its subsequent 

                                                                              pairs

WHAT’S HAPPENING: The National Australia Bank (NAB) Business Confidence Index rates the current level of business conditions in Australia. Changes in business sentiment can be an early signal of future economic activity such as spending, hiring, and investment. 

A higher-than-expected reading ought to be taken as positive/bullish for the AUD, whereas a lower-than-expected reading should be taken as negative/bearish for the AUD.

EQUITIES IN THE COMING WEEK

1. Marvell (MRVL) to announce its Quarterly Results on 7th JUNE 2021, EPS estimated to 0.271 per share while revenue estimated 804.75M. 

2. Navistar (NAV) to announce its Quarterly Results on 8th JUNE 2021, EPS estimated to 0.4989 per share while revenue estimated 2.26B.

3. Thor Industries (THO) to announce its Quarterly Results on 8th JUNE 2021, EPS estimated to 2.24 per share while revenue estimated 2.96B.

4. Brown Forman (BFb) to announce its Quarterly Results on 9th JUNE 2021, EPS estimated to 0.3221 per share while revenue estimated 767.18M.

5. GAIL Ltd UK (GAILq) to announce its Quarterly Results on 9th JUNE 2021, EPS estimated to 0.3148 per share while revenue estimated 2.42B.

TOP COMMODITIES IN THE COMING WEEK

GOLD

Technical Analysis

GOLD is trading in the up channel; further upside will be seen in the near term if it sustains in the channel.

SILVER

Technical Analysis

SILVER was trading in the up channel; if it is not able to follow the channel again then the downside will be seen in the coming days.

WTI CRUDE OIL

Technical Analysis

WTI CRUDE OIL was trading in the up channel but after breaking the channel upside further upside can be seen in the coming days.

TOP CRYPTO IN THE COMING WEEK

BTCUSD

Technical Analysis

BTCUSD was trading in the parallel channel, after breaking the channel downside is seen and it had taken support from 33343.96 level.

ETHEREUM

Technical Analysis

ETHEREUM is trading in an up channel. Further upside can be seen in the coming weeks.

    TOP CURRENCY IN THE COMING WEEK

EURUSD 

Technical Analysis

EURUSD was in the upward channel. In the coming days, the direction will be clear. 

GBPUSD

Technical Analysis

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

GBPJPY

Technical Analysis

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

TOP INDEX IN THE COMING WEEK

FTSE 100

Technical Analysis

FTSE 100 is currently in the upward channel. Further upside can be seen in the coming week.

S&P 500

Technical Analysis

S&P 500 is currently in an upward channel, will remain bullish until it breaks the upward channel downside.

DAX 30

Technical Analysis

DAX 30 is currently in an upward channel, will remain bullish until it breaks the upward channel.

DATA WATCH

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