SUMMARY

  • The Spanish manufacturing PMI is expected to come in at 51.3. In Italy, it is expected at 48.9 points. In France 45.8, in Germany 41.6 and in the euro zone 45.7. In Germany, a year-on-year CPI of 2.2% is expected.
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  • The volume of gold purchases continues to increase. The price closed yesterday with a correction of -0.40%, as traders took profits.
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  • Wall Street stock indices are in the process of correcting. The Nasdaq 100 lost 0.10% to 18,274 points. The main concern for investors is the high level of US debt

 

Main events:

  • Spanish employment figures.
  • Spanish manufacturing PMI
  • German manufacturing PMI
  • Eurozone manufacturing PMI
  • German CPI
  • US JOLT survey
  • API weekly crude oil inventories
  • Japanese services PMI

EURUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in EURUSD price = USD1,000 potential PL.
  • Support 1: 1,0732
  • Support 2: 1,0728
  • Resistance 1: 1,0738
  • Resistance 2: 1,0740

Fundamental Analysis

  • The Spanish manufacturing PMI is expected to come in at 51.3. In Italy, it is expected at 48.9 points. In France 45.8, in Germany 41.6 and in the euro zone 45.7. In Germany, a year-on-year CPI of 2.2% is expected. If this figure is achieved, the country will be very close to its inflation target of 2%.
  • The EURUSD is below its 40-day moving average. The price is moving sideways at the moment. Yesterday, the currency closed with a correction of -0.46%. It is currently trading at 1.0736.
  • Market bears are targeting the level of 1.0700. The US ISM manufacturing PMI came in at 50.3, indicating that the sector continues to expand.
  • ECB delegates commented that they are likely to start the rate cut program before the Fed. Analysts expect the ECB to do so this afternoon.

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2270,01
  • Support 2: 2265,28
  • Resistance 1: 2277,41
  • Resistance 2: 2280,08

Fundamental Analysis

  • The volume of gold purchases continues to increase. The price closed yesterday with a -0.40% correction as traders took profits. Taking advantage of the fall, buying volume has started to increase, pushing the price up +0.80% at the moment and trading at USD 2.275 per troy ounce.
  • The US manufacturing PMI came in at 51.9, remaining in the expansion zone. However, it did not exceed market expectations. For the time being, US macroeconomic data are solid, but some analysts are concerned about the country’s debt levels.
  • Japan’s service sector PMI is expected to come in at 54.9.
  • The gold price is above its 40-day moving average, looking to regain the $2,270 level to rise towards $2,300.

NASDAQ 100

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$183
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 18.472
  • Support 2: 18.457
  • Resistance 1: 18.496
  • Resistance 2: 18.505

Fundamental Analysis

  • Wall Street stock indexes are in the process of correction. The Nasdaq 100 lost 0.10% to 18,274 points. Investors’ main concern is the high level of US debt.
  • Wall Street analysts have simulated a million scenarios on the country’s debt, and the result is that, with a probability of 88%, the level of indebtedness is unsustainable. Goldman Sachs analysts believe that the indices could correct at any time.
  • Fund manager Ken Griffin of Citadel has also expressed concern about debt levels.
  • Citigroup has announced job cuts.
  • The Nasdaq 100 is below its 40-day moving average, looking to regain the 18,572 level.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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