SUMMARY

  • Tesla shares rose 15.31% during yesterday’s session, boosted by the possibility of new contracts with the Chinese government.
  • In Germany, CPI came in at 2.2% versus expectations of 2.3%, unchanged from the previous month.
  • The financial results season continues. Today it is the turn of Amazon, AMD and PayPal, among others.
  • USD/JPY rose sharply to the level of 160.18. However, the price quickly corrected to the 154.53 area on the possibility of the Bank of Japan intervening in the currency market.

 

  • KEY EVENTS:
  • France GDP
  • German retail sales
  • French CPI
  • Spanish GDP
  • German employment change
  • German GDP
  • Euro zone CPI
  • Canadian GDP
  • Weekly crude oil stocks by API

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2332.32
  • Support 2: 2330.56
  • Resistance 1: 2335.34
  • Resistance 2: 2336.60

Fundamental Analysis

  • The Spanish CPI came in at 3.3%, one basis point below the 3.4% forecast. However, it was up from the previous month. In Germany, CPI came in at 2.2%, versus 2.3% expected, and unchanged from the previous month. Overall, Eurozone CPI is very close to the 2% annual target, making it very likely that the ECB will cut interest rates at its June 2024 meeting.
  • France’s GDP is expected to grow by +0.9% y/y. German retail sales are expected to increase by +1.5% in March 2024. Spain’s GDP is expected to increase +1.9% in the first quarter of 2024. Eurozone CPI would come in at 2.4% year-over-year.
  • Canada’s GDP is expected to increase by +0.3% m-o-m.
  • The gold price is stable at USD 2,335 per troy ounce. For the time being, investors have not increased their long positions. For the time being, trading strategies are focused on corporate earnings.

NASDAQ 100

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$177
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 17897.09
  • Support 2: 17889.42
  • Resistance 1: 17912.84
  • Resistance 2: 17920.92

Fundamental Analysis

  • Tesla shares rebounded 15.31% following the Chinese government’s possible approval of the company’s autonomous driving systems. Google shares corrected 3.37% following the company’s rejection of a coal company. Apple shares rose 2.48% as the company increased its market share in the tablet sector. Microsoft shares corrected -1%, due to the confusion generated by the company following the visit of its executives to Indonesia.
  • The financial results season continues. Today it is the turn of Amazon, AMD and PayPal, among others. Amazon shares closed yesterday with a gain of 0.75%. In after-market trading, they are up +0.71%, indicating that traders expect good results from the company.
  • The index is above its 200-day moving average, which is positive. The price continues to advance through the resistance zone and is approaching the upper Bollinger band.

USDJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 156,40
  • Support 2: 155,97
  • Resistance 1: 157,05
  • Resistance 2: 157,27

Fundamental Analysis

  • USD/JPY rose sharply to 160.18. However, the exchange rate quickly corrected towards the 154.53 area, and the Bank of Japan is likely to intervene in the currency market.
  • Japanese industrial production rose by 3.8% in March 2024, confirming the increase in demand for goods produced in the Asian country.
  • In China, the manufacturing PMI came in at 50.4, above the expected 50.3, indicating economic expansion in the sector.
  • Traders are keeping the buy button on USDJPY as the currency has quickly fallen to a support zone, which is likely to trigger a rebound. The currency continues its uptrend. The fundamental factor that makes it right is the intervention of the Bank of Japan.
  • USDJPY is above the 200-day moving average and is looking to break above the upper Bollinger band.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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