SUMMARY

  • The Bank of Japan is about to raise interest rates between 0% and 0.10%. For the moment, Japanese markets are positive, with the Nikkei 225 up 0.22% and the Topix up 0.08%.
  • Natural gas started the week with a significant rebound of +2.76%. It is currently trading at USD 1.712 per BTU.
  • Today, the most important event is the inflation report, which is expected at 2.6%, so analysts believe that the ECB is at a good time to start cutting interest rates.
  • Main events:
    • Eurozone CPI.
    • Royal Bank of Australia interest rate decision
    • Japan industrial production

S&P500

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$51
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 5117,4
  • Support 2: 5114,6
  • Resistance 1: 5124,7
  • Resistance 2: 5129,2

Fundamental Analysis

  • The Bank of Japan is about to raise interest rates between 0% and 0.10%. Japanese markets are positive at the moment, so the Nikkei 225 is up 0.22% and the Topix is up 0.08%. The USDJPY is down -0.03% at the moment and trades at 148.99.
  • Putin has won the presidential election in Russia. In his speech, Putin announced that Russia will not stop in its tracks.
  • This week, traders will be watching the interest rate decisions of several banks. The probability of an interest rate cut is low.
  • Israel prepares the Rafah offensive as tensions in the Middle East continue to rise.
  • The S&P500 started the week up 0.05% and is trading at 5,185 points. Long-term investors expect the upward trend to resume.

NATURAL GAS

Specifications

  • Leverage: 100
  • Units: 10,000
  • Margin requirement: USD$186
  • Example: movement of USD$1 = $1,000 potential PL.
  • Support 1: 1,69
  • Support 2: 1,67
  • Resistance 1: 1,71
  • Resistance 2: 1,717

Fundamental Analysis

  • Natural gas started the week with a significant rebound of +2.76%. It is currently trading at USD 1.712 per BTU.
  • According to Bloomberg analysts, the WTI price could exceed USD 80 per barrel by the end of the year.
  • Recent Ukrainian drone attacks on Russian refineries have reduced refining capacity by 370,500 barrels per day.
  • Japan seeks long-term natural gas supply agreements.
  • The price of natural gas has bounced from the support of 1.64 USD and the lower Bollinger band. The price is about to break above the 40-day moving average line. If it does, the price could continue to move higher through the resistance zones of 1.75 USD and 1.78 USD.

EURUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$544
  • Example: 100 pips change in EURUSD price = USD1,000 potential PL.
  • Support 1: 1,0881
  • Support 2: 1,0878
  • Resistance 1: 1,0886
  • Resistance 2: 1,0890

Fundamental Analysis

  • Traders are looking forward to the manufacturing and services PMIs for the euro zone. Today, the most important is the inflation report, which is expected at 2.6%, so analysts believe that the ECB is at a good time to start cutting interest rates.
  • The market is preparing for interest rate cuts starting in June 2024.
  • North Korea fired a ballistic missile, raising tensions after Blinken’s visit to South Korea.
  • EURUSD started the week correcting -0.02% to trade at 1.0886. The price is just below the 40-day moving average. It is also near the lower Bollinger band and 1.0877 support, which could generate significant buying volume.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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