By Samir Al Khoury,

United States of America

• The Manufacturing PMI recorded a growth of 51.6 points, which is lower than expectations (51.7) but higher than the previous reading (51.3).

• The construction spending index declined on a monthly basis, recording a contraction of 0.1%, which is a lower percentage than expectations and the previous reading (0.3%).

• The Manufacturing Purchasing Managers’ Index issued by the Institute for Supply Management (ISM) declined, recording a contraction of 48.5 points, which is lower than expectations (49.2) and the previous reading (48.7).

• The job opportunities index rose, recording 8.140 million, which exceeded expectations (7.960M) and the previous reading (7.919M).

• The ADP private sector non-farm jobs change index declined, recording 150K jobs, which is lower than expectations (163K) and the previous reading (157K).

• The initial jobless claims index rose to 238K, which exceeded expectations and the previous reading (234K).

• The Services Purchasing Managers’ Index rose, recording a growth of 55.3 points, which exceeded expectations (55.1) and the previous reading (54.8).

• The non-manufacturing purchasing managers index issued by the Institute for Supply Management (ISM) declined, recording a contraction of 48.8 points, which is lower than expectations (52.6) and the previous reading (53.8).

• The factory orders index declined on a monthly basis, recording a contraction of 0.5%, which is lower than expectations (0.2%) and the previous reading (0.4%).

• US crude oil inventories declined, recording 12.157 million barrels, which is lower than expectations (-0.400M) and the previous reading (3.591M).

• The Non-Farm Payrolls Report (NFP) index recorded 206K new jobs, which is a percentage that exceeded expectations (191K) but lower than the previous reading (218K).

• The unemployment rate was 4.1%, which exceeded expectations and the previous reading (4.0%).
• Average hourly wages recorded 3.9%, which is in line with expectations but lower than the previous reading (4.1%).

Eurozone

• The headline consumer price index recorded on an annual basis 2.5%, which is in line with expectations but lower than the previous reading (2.6%). The core consumer price index, which excludes food and energy, recorded on an annual basis 2.9%, which was higher than expectations (2.8%) but consistent with the previous reading.

• The Manufacturing Purchasing Managers’ Index recorded a contraction of 45.8 points, which was higher than expectations (45.6) but lower than the previous reading (47.3).

• The services PMI recorded a growth of 52.1 points, which was higher than expectations (51.2) but lower than the previous reading (52.9).
• The producer price index declined on an annual basis, recording a contraction of 4.2%, which is lower than expectations (-4.1%) and the previous reading (-5.7%).

United Kingdom

• The Manufacturing Purchasing Managers’ Index (PMI) declined, registering a growth of 50.9 points, which is lower than expectations (51.4) and the previous reading (51.2).

• The services PMI recorded a growth of 52.1 points, which was higher than expectations (51.2) but lower than the previous reading (52.9).
• The Construction Purchasing Managers’ Index declined, registering a growth of 52.2 points, which is lower than expectations (54.0) and the previous reading (54.7).

Switzerland

• The Consumer Price Index recorded an annual rate of 1.3%, which is lower than expectations and the previous reading (1.4%).

Canada

• The rate of change in employment declined, recording a loss of 1.4K jobs, which is a lower percentage than expectations (27.3K) and the previous reading (26.7K).

• The unemployment rate rose to 6.4%, which exceeded expectations (6.3%) and the previous reading (6.2%).
• The Ivey Purchasing Managers’ Index rose, registering a growth of 62.5 points, which exceeded expectations (53.0) and the previous reading (52.0).

Australia

• The Manufacturing PMI declined, recording a contraction of 47.2 points, which is lower than expectations (47.5) and the previous reading (49.7).
• The services PMI recorded a growth of 51.2 points, which was higher than expectations (50.6) but lower than the previous reading (52.5).

China

• The Caixin Manufacturing Purchasing Managers’ Index rose, registering a growth of 51.8 points, which exceeded expectations (51.5) and the previous reading (51.7).
• The Caixin Services PMI declined, registering a growth of 51.2 points, which is lower than expectations (53.4) and the previous reading (54.0).

Japan

• The Manufacturing Purchasing Managers’ Index fell to 50.0 points, which is lower than expectations (50.1) and the previous reading (50.4).

• The services PMI declined, recording a contraction of 49.4 points, which is lower than expectations (49.8) and the previous reading (53.8).

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 testimony of US Federal Reserve Chairman Jerome Powell.

• As for Wednesday, the markets are awaiting the interest decision issued by the Central Bank of New Zealand, amid expectations that it will keep interest rates unchanged at the level of 5.50%. The testimony of US Federal Reserve Chairman Jerome Powell is also awaited.

It releases China’s consumer and producer price indices and US crude oil inventories.

• Regarding Thursday, markets are awaiting the GDP and industrial production indices in Britain, new loans in China, consumer price indices and initial jobless claims in the United States of America.

• Finally, on Friday, the indices of exports and imports in China, industrial production in Japan, the producer price indices and the Michigan consumer confidence indices in the United States of America and building permits in Canada will be released.

Technical Analysis:

EUR/USD

If the euro against the dollar breaks the pivot point of 1.0796, it may potentially target and test the support levels of 1.0750, 1.0663 and 1.0617. if it surpasses the pivot point, it is likely to test resistance levels of 1.0883, 1.0929, and 1.1016.

GBP/USD

If the sterling against the dollar breaks the pivot point of 1.2747, it may potentially target and test the support levels of 1.2678, 1.2545, and 1.2477. if it surpasses the pivot point, it is likely to test resistance levels of 1.2880, 1.2949, and 1.3081.

USD/JPY

If the dollar against the yen breaks the pivot point 161.00, it may potentially target and test the support levels of 160.06, 159.38, and 158.44. if it surpasses the pivot point, it is likely to test resistance levels of 161.69, 162.62, and 163.31.

Gold (XAU)

If the gold breaks the pivot point of 2375, it may potentially target and test the support levels of 2349, 2301 and 2275. if it surpasses the pivot point, it is likely to test resistance levels of 2423, 2449, and 2498.

Brent crude oil

If the brent crude breaks the pivot point of 86.45, it may potentially target and test the support levels of 84.95, 83.35 and 81.85. if it surpasses the pivot point, it is likely to test resistance levels of 88.05, 89.55, and 91.15.

US30

If the Dow breaks the pivot point of 39612, it may potentially target and test the support levels of 39420, 39145 and 38953. if it surpasses the pivot point, it is likely to test resistance levels of 39887, 40079, and 40354.

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

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