SUMMARY

  • US ADP Non-Farm Employment Change missed market expectations, coming in at 152,000 versus expectations of 173,000, indicating a weakening of the country’s labor market.
  • Following the Bank of Canada’s decision to cut interest rates, the currency experienced an interesting rally, closing with a gain of +0.97%. At the moment, the price is down -0.24% and trades at 199.17.
  • The Nasdaq 100 closed yesterday with a nice market rally, rebounding 2%, thanks to the upward movement of major technology companies, including Nvidia, which reached a market value of $3 billion.

 

KEY EVENTS:

  • ECB interest rate decision.
  • New jobless claims in the U.S.
  • Statements by Christine Lagarde
  • Indian central bank’s interest rate decision

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2368.31
  • Support 2: 2362.06
  • Resistance 1: 2377.73
  • Resistance 2: 2380.9

Fundamental Analysis

  • In the U.S., ADP Non-Farm Employment Change missed market expectations, coming in at 152,000 jobs versus the 173,000 expected, indicating a weakening in the country’s labor market. Traders are now focusing on NFP. The gold price is currently up +0.64% at USD 2,369 per troy ounce.
  • The Central Bank of Canada cut interest rates by 25 basis points, from the current 5% to 4.75%. This decision sparked optimism in the market, leading to positive closes for Wall Street indices and the Canadian stock market.
  • The US services PMI came in at 54.8, meeting market expectations and remaining in the economic expansion zone.
  • Traders are awaiting the ECB’s interest rate decision, which is expected to drop 25 basis points to 4.25%.

GBPJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$637
  • Example: 100 pips change in GBPJPY price = USD1,000 potential PL.
  • Support 1: 199,10
  • Support 2: 198,92
  • Resistance 1: 199,42
  • Resistance 2: 199,56

Fundamental Analysis

  • Following the Bank of Canada’s decision to cut interest rates, the currency staged an interesting rebound, closing with a gain of +0.97%. Currently, the price is down -0.24% and trades at 199.17.
  • The UK construction PMI is expected to come in at 52.5, i.e. in the economic expansion zone. In Japan, the household spending index is expected to increase by 0.6% on a monthly basis.
  • The currency continued to recover after reaching the lower Bollinger band. After approaching the resistance zone, a profit-taking took place, taking the currency to the current support at 199.13. The price remains below the 200-day moving average. The RSI is neutral, while the moving averages indicate a massive sell-off.
  • According to Goldman Sachs, bullish moves could emerge and generate a rally during the summer, due to market optimism.

NASDAQ 100

Specifications

  • Leverage: 200
  • Units: 1
  • Margin requirement: USD$93
  • Example: movement of 100 points= $1,000 potential PL.
  • Support 1: 19092.25
  • Support 2: 19086.75
  • Resistance 1: 19104.5
  • Resistance 2: 19111.25

Fundamental Analysis

  • The Nasdaq 100 closed higher yesterday, up 2% thanks to the upward momentum of major technology companies, including Nvidia, which reached a market value of $3 trillion. The index is currently up 0.16% and trades at 19,103 points, exceeding its target for the week.
  • Yesterday’s top upward movers in the index constituents were CrowdStrike Holdings +12.05%, ASML +9.52% and Moderna +6.54%. Major bearish movers were Dollar Tree -4.92%, Cisco -2.95% and Kraft Heinz -2.69%.
  • Traders are adding to their long positions in technology stocks and the Nasdaq 100 as they know that if the ECB also cuts rates, it could trigger a market rally. The Fed continues to keep a close eye on inflation in the United States.
  • The index has breached the upper Bollinger band, which could trigger an initial profit-taking. The RSI is overbought and the moving averages are still on a buy signal.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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