By Samir Al Khoury,

United States of America

• The Manufacturing Purchasing Managers’ Index rose, recording a growth of 50.9 points, which exceeded expectations and the previous reading (50.0).

• The Services Purchasing Managers’ Index rose, recording a growth of 54.8 points, which exceeded expectations (51.2) and the previous reading (51.3).

• The new home sales index declined, recording 634K, which is lower than expectations (677K) and the previous reading (665K).

• The initial jobless claims index fell to 215K, which is lower than expectations (220K) and the previous reading (223K).

• US crude oil inventories rose, recording 1.825 million barrels, which exceeded expectations (-2.400M) and the previous reading (-2.508M).

• The existing home sales index declined, recording 4.14 million, which is lower than expectations (4.21M) and the previous reading (4.22M).

• The Michigan Consumer Confidence Index recorded 69.1 points, which exceeded expectations (67.4) but lower than the previous reading (77.2).

• The basic durable goods orders index rose on a monthly basis, recording a growth of 0.4%, which exceeded expectations (0.1%) and the previous reading (0.2%).

Eurozone

• The Manufacturing Purchasing Managers’ Index rose, recording a contraction of 47.4 points, a percentage that exceeded expectations (46.2) and the previous reading (45.7).

• The services PMI recorded a growth of 53.3 points, which is lower than expectations (53.6) but consistent with the previous reading.

United Kingdom

• The headline consumer price index recorded on an annual basis 2.3%, which was higher than expectations (2.1%) but lower than the previous reading (3.2%). The core consumer price index, which excludes food and energy, recorded on an annual basis 3.9%, which was higher than expectations (3.6%) but lower than the previous reading (4.2%).

• The Manufacturing Purchasing Managers’ Index rose, recording a growth of 51.3 points, which exceeded expectations (49.5) and the previous reading (49.1).

• The Services Purchasing Managers’ Index declined, recording a growth of 52.9 points, which is lower than expectations (54.7) and the previous reading (55.0).

Canada

• The Consumer Price Index recorded an annual rate of 2.7%, which is in line with expectations but lower than the previous reading (2.9%).

• The monthly retail sales index recorded a contraction of 0.2%, which is lower than expectations and the previous reading (-0.1%).

New Zealand

• The Central Bank of New Zealand decided to keep the interest rate unchanged at 5.50%, in line with market expectations.

Australia

• The Manufacturing Purchasing Managers’ Index recorded a contraction of 49.6 points, a percentage that was consistent with the previous reading.

• The services PMI recorded a growth of 53.1 points, which is a lower percentage than the previous reading (53.6).

China

• The People’s Bank of China set the 5-year key lending rate at 3.95%, which is in line with expectations and the previous reading.

Japan

• The headline consumer price index recorded on an annual basis 2.5%, which is a lower percentage than the previous reading (2.7%). The core consumer price index, which excludes food, recorded on an annual basis 2.2%, which is in line with expectations, but lower than the previous reading (2.6%).

• The trade balance declined, recording a deficit of 462.5 billion yen, which is a percentage lower than expectations (339.5B) and the previous reading (-366.5B), as both the export and import indices recorded a growth of 8.3%, which is a percentage lower than expectations as well.

• The Manufacturing Purchasing Managers’ Index rose, recording a growth of 50.5 points, which exceeded expectations (49.7) and the previous reading (49.6).

• The Services Purchasing Managers’ Index declined, recording a growth of 53.1 points, which is a lower percentage than the previous reading (53.6).

The most important events of this week

This week, financial markets are eagerly awaiting the release of several key economic indicators:

• On Tuesday, the markets await the retail sales index in Australia and the consumer confidence index in the United States of America.

• Regarding Thursday, markets are awaiting GDP in Switzerland, consumer confidence indicators, the unemployment rate in the Eurozone, GDP indicators, initial jobless claims, pending home sales, and US crude oil inventories in the United States of America.

• Finally, the Consumer Price Index in Tokyo – Japan, the Manufacturing and Non-Manufacturing Purchasing Managers’ Indexes in China, the Consumer Price Index in the Eurozone, the Core Personal Consumption Expenditure Price Index in the United States of America, and the Gross Domestic Product in Canada will be released on Friday.

Technical Analysis:

EUR/USD: 

If the euro against the dollar breaks the pivot point of 1.0844, it may potentially target and test the support levels of 1.0804, 1.0764, and 1.0725. Conversely, if it surpasses the pivot point, it is likely to test resistance levels of 1.0884, 1.0924, and 1.0964.

GBP/USD: 

The pound against the dollar, if it breaks the pivot point of 1.2721, has the potential to test the support levels of 1.2681, 1.2629, and 1.2589. However, if it exceeds the pivot point, it may test resistance levels of 1.2773, 1.2812, and 1.2865.

USD/JPY: 

If the pivot point of 156.54 is broken for the dollar against the yen, there is a possibility that it will target the support levels 155.89, 154.84, and 154.19. But if it exceeds the pivot point, it is likely to target the resistance levels 157.60, 158.24, and 159.30.

 GOLD: 

If the pivot point of 2371 is broken for gold, there is a possibility that it will target the support levels 2289, 2243, and 2161. But if it exceeds the pivot point, it is likely to target the resistance levels 2417, 2500, and 2545.

BRENT CRUDE OIL:

If the pivot point of 82.42 for crude oil is broken, there is a possibility that it will target the support levels of 80.35, 78.58 and 76.51. If it exceeds the pivot point, it is likely to target the resistance levels 84.19, 86.26, and 88.03.

US30:

If the pivot point of 39,491 for the Dow is broken, there is a possibility that it will target the support levels 38,770, 38,383 and 37,662. If it exceeds the pivot point, it is likely to target the resistance levels 39,878, 40,599, and 40,986.

Please note that this analysis is provided for informational purposes only and should not be considered as investment advice.

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