SUMMARY

  • Tensions in the Middle East continue to rise. The Houthis have announced that they are cooperating with Russia and China, which is leading to increased tensions in the region, mainly in the Red Sea.
  • Analysts do not rule out a drop in the price of natural gas due to high stock levels in European Union storage centers.
  • The Eurozone CPI is set at 2.6%, matching the latest trends and improving by 2 basis points from the previous report of 2.8%.

 

Main events:

    • Bank of Japan press conference
    • Statement by Mr De Guindos as Vice-President of the ECB
    • ZEW German Business Confidence Index
    • ZEW Eurozone Business Confidence Index
    • Canadian CPI
    • Bank of Japan decision on interest rates
    • AP Weekly Crude Oil Stocks

S&P500

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$51
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 5141,5
  • Support 2: 5139,2
  • Resistance 1: 5146,2
  • Resistance 2: 5148,6

Fundamental Analysis

  • Tensions in the Middle East continue to rise. The Houthis have announced that they will cooperate with Russia and China, which is generating increased tensions in the region, mainly in the Red Sea.
  • Trump accused the media of not fully understanding his message, corresponding to the internal tensions that would be generated by the scenario in which he lost the presidential elections in the United States.
  • Niger abandoned military cooperation agreements with the United States.
  • China has held military exercises on the border with India, raising tensions between the two countries.
  • Wall Street started the week with an upward movement. The S&P500 closed yesterday with a rise of +0.63%. Currently, the index is sideways above the 5,148 point area. The index is slightly below the 40-day moving average.

NATURAL GAS

Specifications

  • Leverage: 100
  • Units: 10,000
  • Margin requirement: USD$186
  • Example: movement of USD$1 = $1,000 potential PL.
  • Support 1: 1,718
  • Support 2: 1,715
  • Resistance 1: 1,722
  • Resistance 2: 1,723

Fundamental Analysis

  • Analysts do not rule out a drop in the price of natural gas due to high stock levels in European Union storage centers.
  • Saudi Aramco has decided to increase the level of its dividend by 30%.
  • Germany has signed a long-term LNG supply agreement with ADNOC.
  • Venture Global has purchased nine LNG carriers to ensure more competitive freight prices.
  • The price of natural gas in Asia is increasing, due to the rebound in Chinese demand.
  • The price of Natural Gas is currently rising by +0.06%, driven by the announcement of lower than expected temperatures in the US.
  • The price is breaking above the 40-day moving average and looking to rise towards the $1.75 resistance. If this level is reached, the weekly target would be $1.85.

EURUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$544
  • Example: 100 pips change in EURUSD price = USD1,000 potential PL.
  • Support 1: 1,0869
  • Support 2: 1,0866
  • Resistance 1: 1,0875
  • Resistance 2: 1,0878

Fundamental Analysis

  • The eurozone CPI stood at 2.6%, meeting market expectations and improving by 2 basis points from 2.8% in the previous report. The result is positive, so the ECB would be about to start reducing interest rates, since inflation is approaching the 2% target.
  • The Royal Bank of Australia has decided to keep interest rates stable at 4.35%. The Bank of Japan, for its part, raised its interest rates from -0.10% to 0%, thus modifying its monetary policy strategy.
  • Traders are attentive to the statements of De Guindos, as vice president of the ECB. They also pay attention to the ZEW index of investor confidence in Germany and the eurozone.
  • EURUSD remains above the support at 1.0879. The price is slightly below the 40-day moving average. Possible laterality in this area.
  • Standard Chartered projections put Bitcoin at $150,000 by the end of the year.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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