The most important events of the past week

United States of America

• The building permits index rose, recording 1.524M, which exceeded expectations (1.518M) and the previous reading (1.489M).

• The new home sales index declined, recording 662K, which is lower than expectations (675K) and the previous reading (664K).

• The corde durable goods orders index rose on a monthly basis, recording a growth of 0.5%, which exceeded expectations (0.4%) and the previous reading (-0.3%).

• The Consumer Confidence Index declined, recording 104.7 points, which is lower than expectations (106.9) and the previous reading (104.8).

• US crude oil inventories rose, recording 3.165 million barrels, which exceeded expectations (-0.700M) and the previous reading (-1.952M).

• The initial jobless claims index declined, recording 210K, which is lower than expectations and the previous reading (212K).

• The GDP index recorded a growth of 3.4%, which exceeded expectations (3.2%).

• The Michigan Consumer Confidence Index rose to 79.4 points, which exceeded expectations (76.5) and the previous reading (76.9).

• The pending home sales index rose, recording a growth of 1.6%, which exceeded expectations (1.4%) and the previous reading (-4.7%).

• The core personal consumption expenditures price index recorded on an annual basis 2.8%, which is in line with expectations but lower than the previous reading (2.9%).

Eurozone

• The Consumer Confidence Index recorded -14.9 points, which is in line with expectations but higher than the previous reading (-15.5).

United Kingdom

• The GDP index on an annual basis (fourth quarter) recorded a contraction of 0.2%, a percentage that was in line with expectations but lower than the previous reading (0.3%).

Canada

• The GDP index rose on a monthly basis, recording a growth of 0.6% points, which exceeded expectations (0.4%) and the previous reading (-0.1%).

Australia

• The retail sales index declined on a monthly basis, recording 0.3%, which is lower than expectations (0.4%) and the previous reading (1.1%).

China

• The Manufacturing Purchasing Managers’ Index rose, recording a growth of 50.8 points, which exceeded expectations (50.1) and the previous reading (49.1).

• The non-manufacturing purchasing managers index rose, registering a growth of 53.3 points, which exceeded expectations (51.3) and the previous reading (51.4).

Japan

• The Tokyo Consumer Price Index recorded 2.4% on an annual basis, which was in line with expectations but lower than the previous reading (2.5%).

• The unemployment rate rose to 2.6%, which exceeded expectations and the previous reading (2.4%).

• The industrial production index on a monthly basis recorded a contraction of 0.1%, which is lower than expectations (1.2%) but lower than the previous reading (-6.7%).

• The retail sales index rose on an annual basis, recording 4.6%, which exceeded expectations (2.8%) and the previous reading (2.1%).

The most important events of this week

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

•The Manufacturing PMI in Japan, the Caixin Manufacturing PMI in China, and the Manufacturing PMI, Construction Spending, and Manufacturing PMI indices issued by the Institute for Supply Management (ISM) in the United States of America will be released today.

• On Tuesday, the markets are awaiting the manufacturing purchasing managers’ index in Australia, the Eurozone, and Britain, in addition to the factory orders and job opportunities indices in the United States of America.

• On Wednesday, the markets are awaiting the services PMI in Japan, the Caixin services PMI in China, the consumer price index in the Eurozone, the indicators of change in non-agricultural private sector jobs issued by ADP, and the services purchasing managers and non-manufacturing purchasing managers issued by the Institute for Supply Management ( ISM) and US crude oil inventories in the United States of America.

• Regarding Thursday, the markets are awaiting services PMIs, building permits, retail sales in Australia, the consumer price index in Switzerland, the services PMI in the Eurozone, the services PMI in Britain, and initial jobless claims in the United States of America.

• Finally, on Friday, the Construction Purchasing Managers’ Index in Britain, retail sales in the Eurozone, Nonfarm Payrolls report indicators, the unemployment rate and average hourly wages in the United States of America will be released in addition to the rates of change in employment and unemployment and the Ivey Purchasing Managers’ Index in Canada.

Technical Analysis:

EUR/USD: 

If the euro against the dollar breaks the pivot point of 1.0806, it may potentially target and test the support levels of 1.0749, 1.0710, and 1.0652. Conversely, if it surpasses the pivot point, it is likely to test resistance levels of 1.0845, 1.0903, and 1.0942.

GBP/USD: 

The pound against the dollar, if it breaks the pivot point of 1.2623, has the potential to test the support levels of 1.2578, 1.2540, and 1.2496. However, if it exceeds the pivot point, it may test resistance levels of 1.2661, 1.2705, and 1.2743.

USD/JPY: 

If the pivot point of 151.43 is broken for the dollar against the yen, there is a possibility that it will target the support levels 150.89, 150.48, and 149.94. But if it exceeds the pivot point, it is likely to target the resistance levels 151.84, 152.37, and 152.79.

GOLD: 

If the pivot point of 2223 is broken for gold, there is a possibility that it will target the support levels 2189, 2141, and 2108. But if it exceeds the pivot point, it is likely to target the resistance levels 2271, 2305, and 2353.

BRENT CRUDE OIL:

If the pivot point of 86.53 for crude oil is broken, there is a possibility that it will target the support levels of 85.54, 83.60 and 82.61. If it exceeds the pivot point, it is likely to target the resistance levels 88.47, 89.46, and 91.40.

US30:

If the pivot point of 40,024 for the Dow is broken, there is a possibility that it will target the support levels 39,808, 38,441 and 39,225. If it exceeds the pivot point, it is likely to target the resistance levels 40,391, 40,607, and 40,974.

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

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