SUMMARY

  • Yesterday, the gold price closed again in negative territory, down -0.19%. Currently, the metal remains above USD 2321 per troy ounce.
  • The US Senate approved the program of economic and military aid to Ukraine. The UK has sent long-range missiles to Ukraine.
  • Analysts at Rabobank believe that the Fed could start cutting interest rates in September 2024. Analysts are also keeping an eye on the volume of bond purchases by the Bank of Japan.

Key events:

  • German LFO business confidence index.
  • Canadian retail sales
  • EIA crude oil inventories

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2315.6
  • Support 2: 2312.74
  • Resistance 1: 2322.27
  • Resistance 2: 2326.08

Fundamental Analysis

  • Yesterday, the gold price closed again in negative territory, down -0.19%. Currently, the metal remains above USD 2321 per troy ounce.
  • Singapore’s consumer price index came in at 2.7%, an improvement from the previous 3.4%.
  • The Eurozone manufacturing PMI came in at 45.6 and the services PMI at 52.9, indicating that the real sector is contracting, while the services sector is expanding.
  • In the United Kingdom, the services PMI came in at 54.9, also in the expansion zone.
  • In the US, the manufacturing PMI came in at 49.9 and the services PMI at 50.9, both below market expectations.
  • The price is close to the lower Bollinger band, which could attract attention from the long side of the market.

S&P500

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$49
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 5083.1
  • Support 2: 5080.6
  • Resistance 1: 5086.9
  • Resistance 2: 5088.2

Fundamental Analysis

  • The U.S. Senate has approved a program of economic and military aid to Ukraine. The United Kingdom has sent long-range missiles to Ukraine. Russia, for its part, has threatened to increase the volume of its attacks. For the time being, geopolitical tensions have been put aside in the markets, and the focus is now on companies’ financial results.
  • Tesla failed to beat market expectations. The company announced earnings per share of $0.45, compared to the $0.49 expected. In addition, its sales amounted to $21.3 billion, compared to the $22.27 billion expected. The share price had already taken into account the poor results. Instead, long-term traders bought the drop, and the share price is currently up +13.38%, trading at USD 163.96.
  • The most active stocks in the last session were GM +4.32%, Palantir +3.15%, Tesla +1.85% and Bank of America +1.63%.
  • The index crossed the line of its 40-day moving average.

USDJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 154.80
  • Support 2: 154.78
  • Resistance 1: 154.83
  • Resistance 2: 154.84

Fundamental Analysis

  • Analysts at Rabobank believe that the Fed could start cutting interest rates in September 2024. Analysts are also watching the volume of bond purchases by the Bank of Japan. At the moment, USDJPY is moving sideways above the 154.84 level.
  • USDJPY is at its highest level for 34 years. Long-term traders are keeping their weekly target at 156.
  • Japanese Finance Minister Shunichi Suzuki said that the Bank of Japan could intervene in the yen at any time as the currency is above the maximum intervention zone of 152.
  • The U.S. government will auction $180 billion worth of Treasury bonds this week, increasing its level of borrowing.
  • Traders are eagerly awaiting the Bank of Japan’s monetary policy meeting on Friday.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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