SUMMARY

  • German CPI is expected at 2.4% year-on-year, indicating that the market anticipates a two basis point increase from the previous report.
  • In Japan, the BSI manufacturing confidence index is expected at -5.2, meaning the market anticipates a drop in business volumes. The USDJPY is currently up +0.08% at 157.19.
  • Microsoft and BlackRock CEOs to attend G7 meeting in Italy. Hunter Biden was convicted of illegal gun possession. Donald Trump met with bitcoin miners, who are beginning to support the former president.

 

KEY EVENTS:

  • GDP in the U.K.
  • UK industrial production
  • UK manufacturing production
  • German CPI
  • Eurogroup meeting
  • US CPI
  • ECB statement
  • EIA Crude Oil Inventories
  • FOMC economic projections
  • Fed interest rate decision

EURUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$539
  • Example: 100 pips change in EURUSD price = USD1,000 potential PL.
  • Support 1: 1.0739
  • Support 2: 1.0737
  • Resistance 1: 1.0743
  • Resistance 2: 1.0745

Fundamental Analysis

  • German CPI is expected to come in at 2.4% year-over-year, indicating that the market anticipates a two basis point increase from the previous report. The German 10-year bond auction is expected to have an annual yield of 2.53%. EURUSD is currently up +0.03% at 1.0742.
  • Today we will have further statements from ECB policymakers, who continue to analyze the evolution of the Eurozone economy after the first rate cut. The Eurogroup meeting will also start today.
  • We will also have statements from Buch, Vice President of the Bundesbank.
  • In the US, the most important data of the day is the consumer price index (CPI), which is expected at 3.4% year-on-year. If inflation is lower, there could be a stock market rally. Conversely, if inflation rises, we will see widespread corrections in global stock markets.
  • The RSI is at 45.50, in the neutral zone.

USDJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 157,11
  • Support 2: 157,05
  • Resistance 1: 157,21
  • Resistance 2: 157,25

Fundamental Analysis

  • Japan’s BSI manufacturing confidence index is expected to come in at -5.2, which means the market expects a drop in business volume. The USDJPY is currently up 0.08% at 157.19.
  • Traders are waiting for the US CPI results before taking positions in the currency. The price continues to move higher, trying to consolidate the current area in order to climb above the resistance at 157.50. The RSI is at 52.77, in the neutral zone, so the currency could continue its uptrend.
  • The Nikkei 225, the Japanese stock index, is currently down -0.16% at 38,887 points. Asian traders are also awaiting the US inflation report.
  • Today, the Fed will make its decision on interest rates. Although it is not expected to change rates, the CPI results are the subject of much speculation.

NASDAQ 100

Specifications

  • Leverage: 200
  • Units: 1
  • Margin requirement: USD$93
  • Example: movement of 100 points= $1,000 potential PL.
  • Support 1: 19252.5
  • Support 2: 19249.25
  • Resistance 1: 19259.5
  • Resistance 2: 19263.25

Fundamental Analysis

  • Microsoft and BlackRock CEOs to attend G7 meeting in Italy. Hunter Biden was convicted of illegal gun possession. Donald Trump met with bitcoin miners, who are beginning to support the former president. The Nasdaq 100 is currently up 0.12% to 19,265 points.
  • Yesterday, the index was up +0.69%, awaiting CPI and the Fed’s interest rate decision.
  • The best performing stocks yesterday were : Apple +7.25% following its agreement with Open AI, CrowdStrike +2.69% and O’Reilly Automotive +2.55%. The worst performing stocks were PayPal -3.46%, Autodesk -3.07% and Starbucks -2.10%.
  • The index set new all-time highs. The next target is above 19,300. The RSI is at 69, indicating an overbought zone, where the first gains could be taken.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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