Debt Ceiling Discussion Meeting Postponed
Market News Summary
A meeting on the debt ceiling, planned for Friday between President Joe Biden and top congressional leaders, has been postponed until early next week.
Biden was expected to meet with Speaker of the House Kevin McCarthy, Senate Minority Leader Mitch McConnell, Senate Majority Leader Chuck Schumer, and House Minority Leader Hakeem Jefferies. Following their meeting on Tuesday, little progress was made except for a commitment to continue daily meetings in an effort to reach a compromise.
Dollar index (USDX)
The dollar strengthened against a basket of major currencies on Thursday, following the release of new umemployment claims data in the United States. The data could potentially lead to the Federal Reserve halting its interest rate hikes.
The number of new applications for unemployment benefits in the United States rose to its highest level since late 2021, indicating that higher interest rates are starting to impact the labor market. However, the labor market remains robust with 1.6 job opportunities for every unemployed person in March.
The dollar index, which measures the performance of the US currency against six major currencies, rose to 101.92, up 0.7%.
Pivot Point: 101.65
| Support level | Resistance level |
| 101.35 | 102.20 |
| 100.80 | 102.50 |
| 100.05 | 103.30 |
Spot Gold (XAUUSD)
Gold futures declined at the close of trading on Thursday, May 11th, for the second consecutive session. The decline was due to the pressure exerted by the strength of the dollar, while traders assessed the impact of weak US data on interest rate expectations.
At the settlement, gold futures dropped by approximately 0.8%, or $16.60, to $2020.50 per ounce.
Pivot Point: 2022
| Support level | Resistance level |
| 2003 | 2033 |
| 1992 | 2052 |
| 1979 | 2082 |
Dow Jones Index (DJ30ft – US30)
The Dow Jones indices closed lower on Thursday due to the decline in Walt Disney stock, banking, and energy stocks. However, the Nasdaq index rose with continued support from Alphabet.
PacWest Bank’s shares declined after announcing a 9.5% decrease in deposits last week and providing more guarantees to the US Federal Reserve to improve liquidity.
The Dow Jones index dropped by 0.7%, or 221 points, marking the fourth consecutive daily decline, while the S&P 500 index fell by 0.2%, with nearly all major sectors experiencing a decline.
Pivot Point: 33410
| Support level | Resistance level |
| 33140 | 33640 |
| 32910 | 33910 |
| 32410 | 34130 |
US Crude (USOUSD)
On Thursday, oil prices dropped by nearly 2% to a one-week low due to the political deadlock over the US debt ceiling, which sparked concerns about a recession in the world’s largest oil consumer. The rise in US unemployment claims and weak Chinese economic data also impacted prices.
Brent crude futures decreased by $1.43, or 1.9%, settling at $74.98 per barrel, while West Texas Intermediate crude declined by $1.69, or 2.3%, to reach $70.87 at the time of settlement.
Pivot Point: 71.80
| Support level | Resistance level |
| 70.15 | 73.00 |
| 68.95 | 74.65 |
| 66.10 | 77.50 |
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