SUMMARY

  • In Germany, inflation came in at 2.5%, in line with market expectations. In the United States, inflation came in at 3.2%, one basis point above expectations and the previous report.
  • Following the US inflation results, the USDJPY rose to 148.15. However, the currency corrected a few points to reach its current level of 147.36. The downward pressure continues.
  • Wall Street stock indexes closed higher yesterday, despite the rise in US inflation.
  • Main events:
    • UK GDP report
    • UK industrial production
    • UK trade balance
    • European Central Bank meeting
    • Eurozone industrial production
    • EIA U.S. Crude Oil Inventories Report
    • 30-year Treasury Bond Auction

GOLD

Specifications

  • Leverage: 50
  • Units: 100
  • Margin requirement: USD$4161
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2157,54
  • Support 2: 2156,39
  • Resistance 1: 2159,74
  • Resistance 2: 2160,79

Fundamental Analysis

  • In Germany, inflation came in at 2.5%, in line with market expectations. In the United States, inflation came in at 3.2%, one basis point above forecasts and the previous report. The news is not favorable for the market, so the Fed may be slow to lower interest rates.
  • The 10-year Treasury yield has risen from 4.093% to 4.166%. This indicates that investors are interested in fixed income securities due to market uncertainty.
  • Today we will hear UK GDP, which is expected to rise +0.2% month-on-month. We will also have reports on industrial production, manufacturing production and trade balance.
  • We will also have the report on industrial production in the Eurozone, which is expected to contract by 1.8%.
  • Gold prices are trying to bounce from the support of 2,148 USD per troy ounce.

USDJPY

Specifications

  • Leverage: 100
  • Units: 100,000
  • Margin requirement: USD$999
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 147,29
  • Support 2: 147,16
  • Resistance 1: 147,50
  • Resistance 2: 147,58

Fundamental Analysis

  • After the US inflation figures were released, the USDJPY rose to 148.15 points. However, the currency corrected a few points to reach its current level of 147.36. The downward pressure continues.
  • According to the inflation report, the biggest rise in prices was generated by the increase in gasoline prices.
  • Traders want to open positions in the currency in anticipation of an interest rate hike by the Bank of Japan. In this scenario, the country would enter a market economy, with less government intervention.
  • The USDJPY is below its 40-day moving average. However, the price is near the lower Bollinger band, which could spark buying interest. The price remains close to support zones. Trading volume is low at the moment.

NASDAQ 100

Specifications

  • Leverage: 50
  • Units: 1
  • Margin requirement: USD$360
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 18.455,25
  • Support 2: 18.449,25
  • Resistance 1: 18.465,75
  • Resistance 2: 18.470,25

Fundamental Analysis

  • Wall Street stock indexes closed higher yesterday, despite rising inflation in the United States. The Nasdaq 100 closed yesterday up +1.54%. The index is currently trading down -0.12% at 18,455.25 points.
  • Joe Biden has clinched the Democratic Party’s presidential nomination for the 2024 election.
  • Citadel mutual fund manager Griffin said that the Fed should take its time before cutting interest rates, so as not to trigger a major market correction.
  • The US government has approved a $300 million aid package for Ukraine.
  • Boeing is going through a major operational crisis, which is impacting its share price.
  • The Polish government has warned that if Russia wins in Ukraine, Putin will launch an attack on other countries.

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.