A Week Full of Important Economic Data

MARKET NEWS SUMMARY

The Dow Jones index rose by 0.5%, that is equivalent to about 170 points, in Friday session, to close at 33,869 points, and the S&P 500 index rose by 0.2%, to close at 4,090 points. Both indices received support from the energy sector, which topped the list of gainers, supported by an increase in Chevron shares by more than 2%, to close near $172 per share.

On the weekly level, the Dow Jones index fell 0.2%, recording the second weekly decline in a row, and the European markets recorded their first weekly decline in three weeks.

Gold prices have struggled this week with some profit taking after the big gains since the beginning of November.

“We will have to see a significant and sustained progression on the inflation front before policymakers feel comfortable letting rates fall,” said Bart Melek, head of commodity markets research at TD Securities.

Dollar index (USDX)

The markets are anticipating many important economic data this week, the most important of which is the consumer price index in the United States of America, which will give us a more comprehensive view of the Fed’s orientation during the coming period, which in turn will directly affect the movements of the US dollar.

The dollar index is trying to consolidate above its pivot point at 103.25 since the beginning of today’s session, and the positive technical readings started from the positive moving averages intersection and the positive directional EMA indicator.

Momentum indicators may be volatile and there is no strong bullish momentum yet.

Pivot Point: 103.25

British Pound (GBPUSD)

Levels close to 1.1840 still constitute important support for the movement of the pound, as the markets are anticipating many economic data in Britain, the most important of which is the British consumer price index, as well as the rate of change in the claimant count change.

Pivot Point: 1.2080

Spot Gold (XAUUSD)

Gold prices fell when settling trading on Friday, February 10, recording the second consecutive weekly loss, as investors were evaluating the potential steps of the Fed for the coming period.

Upon Friday’s settlement, gold futures fell by 0.2% to $1874.50 an ounce, while recording slight weekly losses of about 0.1%. Gold prices suffered last week with some profit-taking, after significant gains since the beginning of November.

Attention is directed towards inflation data in America for the past month, which is scheduled to be released this week.

Gold is trying to stabilize above its first support levels at $1850 an ounce.

Pivot Point: 1,863

US Crude (USOUSD)

Oil prices retreated after rising 2% in the previous session as investors ignored the impact of Russia’s decision to cut production and instead focused on short-term demand concerns stemming from refinery maintenance in Asia and the United States.

Prices rose on Friday after Russia, the world’s third-largest oil producer, said it would cut crude production in March by 500,000 barrels per day, or about 5% of production, in response to Western restrictions on its exports imposed due to its war in Ukraine.

Brent crude futures fell 69 cents, or 0.8%, to $85.70 a barrel, after rising 2.2% on Friday. The price of US West Texas Intermediate crude was $79.04 a barrel, down 68 cents, or 0.9%, after rising 2.1% in the previous session.

Pivot Point: 79.15