SUMMARY

  • US quarterly GDP disappointed the market, rising 1.6% versus 2.5% expected.
  • Even though US GDP did not grow at the expected rate, investors opened long positions in the S&P500, taking advantage of the discount at which it was trading.
  • The Bank of Japan left interest rates unchanged at 0.10%. Yesterday, USDJPY rose +0.20%.
  • Microsoft and Alphabet have exceeded market expectations, and their shares are rising strongly in the after market.

 

Main events:

  • Retail sales in Spain
  • Unemployment rate in Spain
  • Underlying prices of personal consumption expenditure in the United States

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2328.02
  • Support 2: 2323.85
  • Resistance 1: 2334.78
  • Resistance 2: 2337.37

Fundamental Analysis

  • The US quarterly GDP disappointed the market, with an increase of +1.6% compared to the expected 2.5%. As a result, traders began to open long positions in gold, causing the price of the metal to rise by +0.69% during yesterday’s session.
  • New claims for unemployment benefits in the United States rose to 207,000 from 214,000, indicating an improvement in the US labor market.
  • One of investors’ biggest concerns is the performance of technology companies. Although companies may do better based on earnings per share and sales metrics, operators focus more on the number of new users, which will generate cash flow in the future. This is the case of Netflix and Meta, titles that have been heavily sanctioned by the market.
  • Operators pay attention to the PCE, expected at 2.6% annually, which is the indicator most analyzed by the FED, because it allows the behavior of inflation to be evaluated and predicted.

S&P500

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$49
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 5087.1
  • Support 2: 5084.7
  • Resistance 1: 5092.2
  • Resistance 2: 5094.9

Fundamental Analysis

  • Even though the US GDP did not grow at the expected rate, investors opened long positions in the S&P500 taking advantage of the discount at which it was trading. Yesterday the index closed with an increase of +0.92%. Currently, the S&P500 has risen +0.83% and is trading at 5,090 points.
  • Microsoft exceeded market expectations, with earnings per share of $2.94 versus $2.82 expected and revenue of $61.86 billion versus $60.84 billion expected. The stock has risen +4.41% on the secondary market.
  • Alphabet reported earnings per share of $1.89 versus $1.51 expected and sales of $80.54 billion versus $78.69 billion expected. Therefore, these results exceeded investors’ expectations. The stock has risen +11.59% on the secondary market.
  • Traders are paying attention to the results of Exxon Mobil and Chevron, two of the large oil and gas companies.

USDJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 155.53
  • Support 2: 155.48
  • Resistance 1: 155.62
  • Resistance 2: 155.68

Fundamental Analysis

  • The Bank of Japan left interest rates unchanged at 0.10%. Yesterday, USDJPY rose +0.20%. Currently, the currency is up +0.10% and is trading at 155.80, very close to the weekly target of 156.
  • For the moment, the Japanese financial authorities have not intervened in the currency market. Analysts believe there could be intervention if the yen hits 160.
  • The BoJ has begun to reduce the volume of its monthly bond purchases. According to Pimco, the Bank of Japan will increase interest rates to a level higher than expected by the market.
  • Following the Bank of Japan’s decision, Japanese stock indices are on the rise. The Nikkei 225 rises +0.56% and the Topix +0.36%.
  • USDJPY managed to reach the 156 level, the price bounced towards the upper Bollinger band. Bulls target 156.50. The price remains above the 200-day moving average.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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