SUMMARY

  • The gold price starts the week higher. On this occasion, it is up +0.13% to USD 2,330 per troy ounce. Traders are paying attention to the global manufacturing PMI results.
  • Japan’s capital expenditures rose +6.8% y-o-y, while the market was expecting +12.2%. The British pound and Japanese yen start the week down -0.08% at 200.27.
  • The Nasdaq 100 started the week with a +0.26% rally, trading at 18,639 points. The U.S. manufacturing PMI is expected to come in at 50.9, which corresponds to the economic expansion zone.

 

Main events:

  • Spanish manufacturing PMI
  • French manufacturing PMI
  • Eurozone manufacturing PMI
  • US manufacturing PMI
  • U.S. ISM manufacturing PMI

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2324.99
  • Support 2: 2322.8
  • Resistance 1: 2328.45
  • Resistance 2: 2329.72

Fundamental Analysis

  • The gold price starts the week higher. On this occasion, it is up +0.13% to USD 2,330 per troy ounce. Traders are paying attention to the global manufacturing PMI results.
  • The main factors influencing the gold price are : Supply and demand, inflation, dollar developments, interest rates, geopolitics, market uncertainty and speculation. Currently, all these factors are present in the market, suggesting increased volatility in the price of gold.
  • According to Goldman Sachs, the gold price remains bullish and could reach USD 2,600 per troy ounce later in the year. This is due to rising geopolitical and military tensions.
  • The price is halfway to entering a resistance zone. However, it is still below the 200-day moving average. The moving averages indicate buy, while the RSI indicates sell.

GBPJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$637
  • Example: 100 pips change in GBPJPY price = USD1,000 potential PL.
  • Support 1: 200.14
  • Support 2: 200.02
  • Resistance 1: 200.4
  • Resistance 2: 200.54

Fundamental Analysis

  • Japanese capital expenditures increased +6.8% y-o-y, while the market expected +12.2%. The British pound and Japanese yen start the week down -0.08% at 200.27.
  • The BRC UK retail sales index is expected to rise +1.2% y/y.
  • In Japan, the 10-year bond auction is expected to yield +0.857%, low compared to other developed markets.
  • Analysts expect the Bank of England to cut interest rates at its June meeting, following in the footsteps of the ECB.
  • The Bank of Japan, meanwhile, continues its bond purchases and keeps interest rates in positive territory, hoping to further regulate the domestic market.
  • The currency is above its 200-day moving average, trying to stay above the resistance zone. The weekly target is to break above the 200.87 level.

NASDAQ 100

Specifications

  • Leverage: 200
  • Units: 1
  • Margin requirement: USD$93
  • Example: movement of 100 points= $1,000 potential PL.
  • Support 1: 18615.84
  • Support 2: 18603.67
  • Resistance 1: 18641.59
  • Resistance 2: 18655.17

Fundamental Analysis

  • The Nasdaq 100 started the week with a +0.26% rally, trading at 18,639 points. The US manufacturing PMI is expected to come in at 50.9, which corresponds to the economic expansion zone.
  • U.S. construction spending is expected to increase by 0.2% on a monthly basis. On the other hand, the ISM manufacturing employment index is expected to come in at 48.6, which is in the contraction zone. The ISM manufacturing PMI would come in at 49.8, also in the contraction zone. The ISM manufacturing price index would come in at 60.
  • At the end of last week, the top upward movers in Nasdaq 100 stocks were Zscaler +8.50%, Walgreens Boots +5.39%, and Charter Communications +3.99%. Top decliners were MongoDB -23.85%, Marvell -10.43% and Datadog -6.19%.
  • The Nasdaq 100 is looking to enter a resistance zone, after an interesting bounce from the lower Bollinger band. The moving averages and RSI point to buy. Weekly target is 18,900.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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