SUMMARY

  • Spanish CPI is expected to increase 3.4% year-over-year. Germany’s CPI is expected to increase by 2.3% yoy.
  • The Nasdaq 100 closed last week with a +1.53% rally, after several corrections during the week on the back of good results from major technology companies.
  • The USDJPY rallied strongly last week. The currency gained a total of 2.39%. It was up +1.73% on Friday, surpassing the weekly target of 156 at 158.35.

 

Main events:

  • Spanish CPI
  • German CPI
  • Japan industrial production
  • China manufacturing PMI

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2337.2
  • Support 2: 2334.35
  • Resistance 1: 2341.96
  • Resistance 2: 2343.87

Fundamental Analysis

  • Spanish CPI is expected to increase 3.4% year-over-year. German CPI is expected to be 2.3% yoy. These data are important to confirm the ECB’s intention to start cutting interest rates from the June 2024 meeting.
  • Today we will have statements from De Guindos as Vice President of the ECB, which will give hints of the change in the bank’s monetary policy strategy.
  • Japanese industrial production is expected to have risen by 3.4% in March 2024. This is a key element, as it confirms the demand trend in the country.
  • Australian retail sales are expected to have increased by +0.2% in March 2024.
  • China’s manufacturing PMI is expected to reach 50, i.e. in the economic expansion zone.
  • As the financial results season continues, gold prices could return to the resistance zone as traders need to hedge risks in their portfolios.

NASDAQ 100

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$177
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 17828.84
  • Support 2: 17820.92
  • Resistance 1: 17846.34
  • Resistance 2: 17855.92

Fundamental Analysis

  • The Nasdaq 100 closed last week with a rebound of +1.53%, after several corrections during the week due to regular results from major technology companies.
  • On Tuesday we will see results from Amazon and PayPal, both of which are important for the Nasdaq 100. Good results are expected for Amazon, as the company continues to gain market share in the field of artificial intelligence and consolidates its leading position in e-commerce. As a result, Amazon’s results could be the trend of the day on the Nasdaq 100.
  • Another company on traders’ radar this week is Apple. The main concern is the drop in demand for iPhones due to the problems U.S. companies are experiencing in China. However, Apple as a company is focusing on negotiations with OpenAI to include AI in iPhones.

USDJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 157,78
  • Support 2: 157,64
  • Resistance 1: 157,97
  • Resistance 2: 158,04

Fundamental Analysis

  • The USDJPY rallied strongly last week. The currency gained 2.39% in total. On Friday it rose +1.73%, surpassing its weekly target of 156 at 158.35.
  • Japanese industrial production is expected to have risen by 3.4%. If this figure is met or exceeded, it would increase demand for Japanese products, which is good for the Japanese economy.
  • Bank of Japan Governor Kazuo Ueda has stated that the Bank’s strategy is focused on assessing inflation performance to adjust monetary easing. Analysts are focusing on international markets, mainly FX markets, as traders are heavily exposed to the USDJPY.
  • The Bank of Japan has also indicated that the volume of bond purchases will begin to gradually taper. The target for the yen is 160.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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