SUMMARY

  • Gold prices are beginning to recover a few points after three days of profit-taking by traders.
  • The S&P500 closed yesterday with a correction of -0.77%, mainly due to mixed corporate financial results.
  • The market expects the Bank of Japan to maintain interest rates at +0.10%. The bank continues to assess the economy’s performance against rates in positive territory.

Main events:

  • ECB Economic Bulletin
  • US GDP
  • U.S. jobless claims
  • Japanese CPI

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2321.99
  • Support 2: 2318.25
  • Resistance 1: 2327.83
  • Resistance 2: 2329.93

Fundamental Analysis

  • Gold prices are beginning to recover a few points after three days of profit-taking by traders. Yesterday, the metal closed up +0.21%. It is currently up +0.52% at USD$2328.39 per Troy ounce.
  • The LFO German business confidence index came in at 89.4, higher than the market forecast of 88.9.
  • US Treasury auction yields came in at 4.659%, ahead of forecasts of 4.235%, indicating that fund managers continue to be exposed to fixed-income securities.
  • US quarterly GDP for Q1 2024 is expected to be +2.5%. If the result is better than expected, indices and equities could recover from the declines of recent days.
  • The Bank of Japan’s interest rate decision is expected at +0.10%.

S&P500

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$49
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 5035.3
  • Support 2: 5031.5
  • Resistance 1: 5043.2
  • Resistance 2: 5047.3

Fundamental Analysis

  • The S&P500 closed yesterday with a correction of -0.77%, mainly due to mixed corporate financial results. Meta exceeded expectations, but investors are more focused on user growth than financial results. IBM and AT&T did not improve their operating income levels, indicating a drop in demand.
  • The index is currently down 0.51% at 5045.90 points. Investors fear poor performance in the technology sector. The major technology companies are presenting their results during the week, so the concern persists and is reflected in sales volume.
  • Antony Blinken, who is in China, has announced responsible management of the country’s geopolitical relations.
  • The index is on the verge of crossing the 200-day moving average line, indicating that buying volume is beginning to improve.

USDJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 155.56
  • Support 2: 155.49
  • Resistance 1: 155.70
  • Resistance 2: 155.77

Fundamental Analysis

  • The market expects the Bank of Japan to maintain interest rates at +0.10%. The bank continues to assess the economy’s performance against rates in positive territory. The USDJPY is currently up +0.21% at 155.66.
  • Tokyo’s CPI is expected to come in at 2.2%, very close to the 2% inflation target, which is a good sign, and a warning sign for a tightening of the BoJ’s monetary policy.
  • Traders are therefore awaiting the BoJ’s monetary policy statement.
  • The Nikkei 225 is currently down -0.88%, driven by US technology stocks, and traders are awaiting the BoJ’s presentation.
  • The USDJPY is above the upper Bollinger Band, indicating that the volume of long positions is increasing. However, a natural correction could occur due to profit-taking. The target remains at 156.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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