SUMMARY

  • According to Reuters, France is preparing to send a direct contingent of 2,000 troops to Ukraine. For its part, NATO is reinforcing its military presence on Russia’s borders.
  • Analysts expect the world supply of natural gas to increase once Iraq increases its production levels of this raw material.
  • Wages in the eurozone increased by 3.10% on an annual basis. The ZEW business investment confidence index came in at 33.5, exceeding market expectations of 25.4.
  • Main events:
    • UK CPI
    • Statement by Christine Lagarde, President of the ECB.
    • EIA crude oil inventories
    • Statements by Mr. Nagel, President of the Bundesbank
    • FOMC economic projections
    • Fed interest rate decision
    • FOMC Press Conference

S&P500

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$51
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 5170,4
  • Support 2: 5168,7
  • Resistance 1: 5173,1
  • Resistance 2: 5174,1

Fundamental Analysis

  • According to Reuters, France is preparing to send a contingent of 2,000 troops directly to Ukraine. For its part, NATO is reinforcing its military presence on Russia’s borders.
  • Canadian CPI came in at 2.1% year-on-year, prompting investors and the Bank of Canada to start cutting interest rates as it is very close to the 2% inflation target.
  • Traders are keeping an eye on the FOMC economic projections. Traders are watching the FOMC economic projections, as well as the Fed’s decision on interest rates, which are expected to remain steady at 5.50%. If the Fed surprises the market and cuts rates, it could trigger a major rally in global equity markets.
  • The S&P500 breaks above its 40-day moving average and enters the resistance zone. The first two levels to overcome are at 5,240 and 5,255.

NATURAL GAS

Specifications

  • Leverage: 100
  • Units: 10,000
  • Margin requirement: USD$186
  • Example: movement of USD$1 = $1,000 potential PL.
  • Support 1: 1,748
  • Support 2: 1,746
  • Resistance 1: 1,752
  • Resistance 2: 1,754

Fundamental Analysis

  • Analysts expect the world’s supply of natural gas to increase once Iraq increases its production levels of the commodity. Russia has announced that it is prepared to defend its oil and gas assets with long-range missiles.
  • The U.S. oil and gas industry spent $234 billion on mergers and acquisitions in 2023.
  • The United Kingdom intends to implement a plan to improve its energy supply conditions worth US$74 billion.
  • Second consecutive day of positive movements for natural gas. Yesterday, the commodity closed up 2.88%. Currently, the price is up +0.17% and stands at USD 1.751. The upward pressure on the price is due to supply disruptions in Norway, Nigeria and the United States.
  • The price is entering a resistance zone. The level to be overcome is 1,764 USD. The price remains above its 40-day moving average.

EURUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$544
  • Example: 100 pips change in EURUSD price = USD1,000 potential PL.
  • Support 1: 1,0865
  • Support 2: 1,0861
  • Resistance 1: 1,0871
  • Resistance 2: 1,0873

Fundamental Analysis

  • Wages in the euro zone increased by 3.10% on an annual basis. The ZEW business investment confidence index came in at 33.5, exceeding market expectations of 25.4.
  • Traders are eagerly awaiting the statement by Christine Lagarde, President of the European Central Bank, who will present the outlook for monetary policy.
  • We will also hear from Bundesbank President Nagel today.
  • It is very likely that the ECB will start cutting interest rates from June 2024. The probability of a June cut is 55%.
  • The EUR/USD price continues its upward movement from the 1.0843 support. The currency is above its 40-day moving average, reflecting dominant buying volume.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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