SUMMARY

  • Tensions in the Middle East continue. The US Congress closely analyzes the escalation of war. Houthi attacks in the Red Sea continue.
  • The Bank of Japan (BOJ) has stated that it does not rule out further interest rate cuts. The Bank is awaiting the results of the wage survey to be released today.
  • US President Joe Biden stated that US Steel must stand united with its US partners. The statement follows Nippon Steel’s intention to acquire a stake in the company.
  • Main events:
    • French inflation report
    • US industrial production
    • Statements by the European Central Bank delegates.

GOLD

Specifications

  • Leverage: 50
  • Units: 100
  • Margin requirement: USD$4161
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2161,47
  • Support 2: 2160,20
  • Resistance 1: 2165,01

Fundamental Analysis

  • Tensions in the Middle East continue. The US Congress closely analyzes the escalation of the war. Houthi attacks in the Red Sea continue. Yesterday, the price of gold corrected -0.62%. Currently, the metal remains above USD 2,162.90 per troy ounce.
  • US jobless claims came in at 209,000, above market expectations. On the other hand, retail sales rose +0.6%, but did not beat market expectations of +0.8%.
  • Inflation in France is expected to be 0.8% on a monthly basis. Macron’s statements that the French government is considering sending troops to Ukraine are causing tensions to rise significantly. According to NATO Director General Jens Stoltenberg, Ukraine has run out of ammunition.
  • The gold price is just below the 40-day moving average, trying to hold the level in order not to fall back into the support zone. Bulls are looking to regain the 2,180 USD level.

USDJPY

Specifications

  • Leverage: 100
  • Units: 100,000
  • Margin requirement: USD$999
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 148,42
  • Support 2: 148,35
  • Resistance 1: 148,53
  • Resistance 2: 148,57

Fundamental Analysis

  • The Bank of Japan (BOJ) has stated that it does not rule out further interest rate cuts. The Bank is awaiting the wage survey results, which will be released today.
  • The USD/JPY closed yesterday’s trading session up +0.39%. Currently, the currency is up +0.10% at 148.47.
  • Producer prices (PPI) in the US rose by 0.6%, indicating that inflation is on the rise, which would lead the Fed to delay further interest rate cuts.
  • Higher interest rates generate more long positions in USDJPY, so the currency maintains its uptrend.
  • According to the CME’s FedWatch, the probability of a Fed rate hike in May is 9%. For June, it is 62%, down from 70% previously.

NASDAQ 100

Specifications

  • Leverage: 50
  • Units: 1
  • Margin requirement: USD$360
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 18.237,66
  • Support 2: 18.229,83
  • Resistance 1: 18.261,16
  • Resistance 2: 18.276,83

Fundamental Analysis

  • US President Joe Biden has stated that US Steel must remain united with its US partners. This follows Nippon Steel’s intention to acquire a stake in the company.
  • According to investment fund Blackstone, now is a good time to buy US real estate, as prices have bottomed out.
  • According to the US PPI results, the Fed has confirmed that the time has not come to start cutting interest rates. The Nasdaq 100 closed -0.18% lower yesterday following the announcement. Currently, the index is down -0.18%.
  • The market expects a Putin victory in the Russian elections.
  • The volume of South Korean investments in China has reached a record high due to tensions between China and the West.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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