SUMMARY

  • Investors start this week with an eye on the US inflation report. This week will be decisive in determining when the Fed will start cutting interest rates.
  • Japanese GDP grew by 0.4% on the year, beating market expectations of -0.4%. Despite this, USDJPY remains under downward pressure, this time correcting -0.17% to trade at 146.82.
  • US Non-Farm Payrolls rose by 275,000, beating the 198,000 expected by the market. This sparked optimism in the equity market.
  • Main events:
    • Eurogroup meeting
    • Fed inflation outlook
    • U.S. Treasury 3-year bond auction
    • Bundesbank delegate members’ statements

GOLD

Specifications

  • Leverage: 50
  • Units: 100
  • Margin requirement: USD$4161
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2181,13
  • Support 2: 2175,49
  • Resistance 1: 2190,76
  • Resistance 2: 2194,75

Fundamental Analysis

  • Investors start this week with an eye on the US inflation report. This week is decisive in determining when the FED will start cutting interest rates. The gold price is currently up +0.09% at USD 2180 per troy ounce.
  • Today is the Eurogroup meeting, where the continent’s most important issues will be discussed.
  • If inflation rises in the United States, the stock markets could suffer a major correction. With the market at record highs, the drop would be larger than expected. On the other hand, if inflation falls, the rally could continue.
  • Buyer positions in gold continue to increase, while the equity market remains at record levels. Traders are looking to hedge their portfolios against profit-taking in equities.

USDJPY

Specifications

  • Leverage: 100
  • Units: 100,000
  • Margin requirement: USD$999
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 146,64
  • Support 2: 146,53
  • Resistance 1: 146,90
  • Resistance 2: 147,05

Fundamental Analysis

  • Japanese GDP grew by 0.4% on the year, beating market expectations of -0.4%. Despite this, USDJPY remains under downward pressure, this time correcting -0.17% to trade at 146.82.
  • The Japanese economy managed to avoid recession just a week before the BOJ meeting.
  • USDJPY was near 153 when a major correction began. Japan’s economic problems and the Bank of Japan’s reluctance to change its monetary policy strategy continue to cause uncertainty among investors.
  • The Japanese business climate index is expected to reach 6.2 points, which would indicate an improving business environment.
  • USDJPY is below the 40-day moving average, indicating an increase in the number of sellers. The price is near support at 144, which could increase buying interest above the current level.

NASDAQ 100

Specifications

  • Leverage: 50
  • Units: 1
  • Margin requirement: USD$360
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 18.248,16
  • Support 2: 18.233,33
  • Resistance 1: 18.285,91
  • Resistance 2: 18.303,83

Fundamental Analysis

  • The number of non-farm jobs in the United States increased by 275,000, exceeding the 198,000 expected by the market. This sparked optimism in the equity market. However, traders began to profit-take above record highs, leading to a -1.15% decline in the Nasdaq 100 at Friday’s close.
  • The index is trying to hold in the 18,000-point area. Currently, the Nasdaq 100 is down -0.12% at 18,275 points.
  • Nvidia, one of the top companies in the index, corrected more than -5% on Friday.
  • Traders are focused on U.S. inflation, which is the key to whether the rally continues or whether corrections are prolonged.
  • The index is below the 40-day moving average and approaching the lower Bollinger band. Possible buying interest at current levels.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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