The Markets Are Waiting for Economic Data

MARKET NEWS SUMMARY

The sharp decline in Amazon’s stock over the past year has resulted in a change in the company’s employee compensation plan leading to a significant reduction in their salaries compared to targeted compensations, according to informed sources of the Wall Street Journal.

The sources indicated that Amazon pays a significant portion of its employees’ annual salaries in the form of restricted stock, and the decline in the company’s stock has caused wages for 2023 to be lower by 15% to 50% than the expected targets presented by the company to its employees.

European stocks stabilized at the end of trading on Monday, February 20, following a volatile day of trading, with the focus this week on the release of the Fed’s meeting minutes.

Data from the European Union published on Monday showed that production in the construction sector shrank by 2% in December, with an 8% decrease in Germany.

Meanwhile, consumer confidence data for the eurozone was released, showing an increase to -19.0 in February, but still it is significantly lower than the long-term average.

Dollar index (USDX)

The dollar index is settling on the rise, awaiting the minutes of the Fed’s meeting tomorrow and some important economic data that will chart the direction of the markets in the coming months.

Technically, the readings are volatile, there is no bullish momentum. However, many technical readings are still positive, headed by the moving average crosses and the reading of the EMA indicator.

Pivot Point: 103.80

Resistance level	Support level
104.10	103.50
104.40	103.20
104.85	102.40

British Pound (GBPUSD)

Investors are waiting Britain’s Manufacturing and Services PMI today, which is expected to witness some positivity.

Technically, there has been a short-term bullish momentum since the beginning of today’s session, with which the pound is trying to stabilize near its important levels at 1.2000, the reading of the EMA trend indicator is still negative, as well as the moving averages.

Pivot Point: 1.2035

Resistance Level	Support Level
1.2055	1.2010
1.2075	1.1980
1.2135	1.1950

Spot Gold (XAUUSD)

Gold rose slightly today. It was confined to a narrow range as investors refrained from forming large positions ahead of the release of US economic data that might affect the Fed’s interest rate strategy.

Gold rose 0.1% to $1,842.37 an ounce, while it is trading in a range of $4. US gold futures also rose 0.1% to $1,852.10.

High-interest rates discourage investors from putting money into non-yielding assets such as gold.

This month, gold prices recorded their highest levels since April 2022. Yet, they have since lost about $120 after a series of economic data showed signs of resilience in the US economy and labor market scarcity, raising fears that interest rates will remain high for a longer period.

Pivot Point: 1,841

Resistance level	Support Level
1,845	1,837
1,850	1,832
1,859	1,825

US Crude OIL (USOUSD)

Russia has expanded its fleet of oil tankers by $2.2 billion to keep its exports flowing under Western and US sanctions.

Negative movements in oil prices since the beginning of today’s session. Technically, there is clear negative pressure, and momentum indicators give negative readings while waiting for more data on the US economy that may determine the general direction.