SUMMARY

  • The German manufacturing PMI met market expectations with a reading of 45.4 points. In the euro zone, the same indicator came in at 47.3, versus expectations of 47.4.
  • The BRC UK retail sales index came in at 0.4%, below the 1.2% expected by the market. GBPJPY is currently up +0.18% at 200.26.
  • The Nasdaq 100 closed yesterday up +0.29%. It is currently up +0.05% and trades at 18,656 points.

 

Main events:

  • Unemployment in Germany
  • Bundesbank statement
  • US JOLT survey
  • API weekly crude inventories
  • Japanese services PMI

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2342.84
  • Support 2: 2338.57
  • Resistance 1: 2351.88
  • Resistance 2: 2356.65

Fundamental Analysis

  • The German manufacturing PMI met market expectations with a reading of 45.4 points. In the euro zone, the same indicator came in at 47.3, against expectations of 47.4. In the United States, the PMI came in at 51.3, above the 50.9 expected, confirming the economic expansion of the sector.
  • In Germany, an unemployment rate of 5.9% is expected. In Switzerland, monthly CPI is expected at 0.4%.
  • Wall Street closed mixed yesterday, with a greater negative impact on industrial stocks. The Dow Jones fell by 0.30%. The S&P500 closed up +0.11% and the Nasdaq 100 +0.56%.
  • Investment funds continue to open positions in the market, anticipating a rate cut by the ECB and the Bank of England, which would favor equities and stock indexes. The gold price ended yesterday up +1.05%. It is currently trading at USD 2,345 per troy ounce.

GBPJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$637
  • Example: 100 pips change in GBPJPY price = USD1,000 potential PL.
  • Support 1: 200.22
  • Support 2: 200.13
  • Resistance 1: 200.39
  • Resistance 2: 200.47

Fundamental Analysis

  • The BRC UK retail sales index came in at 0.4%, below the 1.2% expected by the market. GBPJPY is currently up +0.18% at 200.26.
  • The Japanese service sector PMI is expected to come in at 53.6, i.e. in the economic expansion zone.
  • The currency is trying to break above the 200.80 resistance level, a key point that it has failed to cross twice. The currency is still above its 200-day moving average. The RSI and moving averages point to buying.
  • Traders are watching the Bank of Japan’s intervention in the currency market. The alert was announced by the CEO of Suzuki in Japan. If this happens, the currency could experience a rapid pullback, near the current lower Bollinger band.
  • Support to watch is at 198.79. Bullish targets are at 201 and 202.

NASDAQ 100

Specifications

  • Leverage: 200
  • Units: 1
  • Margin requirement: USD$93
  • Example: movement of 100 points= $1,000 potential PL.
  • Support 1: 18647.84
  • Support 2: 18639.92
  • Resistance 1: 18666.59
  • Resistance 2: 18677.42

Fundamental Analysis

  • The Nasdaq 100 closed yesterday up +0.29%. It is currently up +0.05% to 18,656 points.
  • Morgan Stanley warned investors against heavy speculation in the markets due to the U.S. presidential election.
  • Memo stocks reappeared this week. Roaring Kitty announced a long position in Gamestop stock worth $120 million. GME shares were up 21% yesterday. In after-market trading, they are up +8.39%.
  • The main upward moves yesterday were by Nvidia +4.89% (traders bought before the stock split), Autodesk +4.57% and Moderna +3.70%. Major downward movements were recorded by Diamondback -4.29%, Constellation Energy -4.14% and Baker Hughes -3.97%.
  • The index continued its rebound from the lower Bollinger band, managing to rebound to the resistance zone.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

Risk Disclaimer

Any information/article/material/content provided in this document is intended to be used for educational purposes only and does not constitute investment advice or consultation on how the client should trade.

While the authors have ensured that the content of such information is accurate, they are not responsible for any omissions/errors/miscalculations and cannot guarantee the accuracy of any material or any information contained therein.

Therefore, any reliance you place on such material is strictly at your own risk. Please note that the responsibility for using or relying on such material rests with the customer and the company accepts no liability for any loss or damage including, without limitation, any loss of profit which may arise directly or indirectly from the use of or reliance on such information.