SUMMARY

  • In the U.S., jobless claims came in at 210,000, compared to 212,000 expected. The country’s manufacturing PMI came in at 52.5 and the services PMI at 51.7, indicating that both sectors are expanding.
  • The US state of Texas is taking restrictive measures against several institutions blocking investment in fossil fuel companies.
  • Downward pressure on EURUSD. Yesterday, the currency closed with a correction of -0.53%. Currently, it continues to fall, this time by -0.23% and trades at 1.0835.

 

Main events:

    • UK retail sales.
    • German LFO business confidence index
    • Eurozone leaders’ summit
    • Fed Chairman Powell’s statement

S&P500

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$51
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 5236,6
  • Support 2: 5234,7
  • Resistance 1: 5242,2
  • Resistance 2: 5245,9

Fundamental Analysis

  • In the U.S., jobless claims came in at 210,000, compared to 212,000 expected. The country’s manufacturing PMI came in at 52.5 and services at 51.7, indicating that both sectors are expanding.
  • Investors are eagerly awaiting Jerome Powell’s weekly closing statement as Fed Chairman. The presentation will focus on the review of macroeconomic data in the U.S., including inflation developments, and the possible initiation of interest rate cuts.
  • Fifth consecutive day of positive closing for the S&P500. Yesterday it closed up 0.14%. For the time being, the index remains above the 5241 area. Long traders are looking for a weekly close above the resistance located at 5320. At the moment, the price is below the 40-day moving average and is in the lower Bollinger band, which could attract buyers’ attention.
  • Traders are looking to buy shares of Reddit, which have started trading on the New York Stock Exchange.

NATURAL GAS

Specifications

  • Leverage: 100
  • Units: 10,000
  • Margin requirement: USD$186
  • Example: movement of USD$1 = $1,000 potential PL.
  • Support 1: 1,704
  • Support 2: 1,701
  • Resistance 1: 1,710
  • Resistance 2: 1,713

Fundamental Analysis

  • The US state of Texas is taking restrictive measures against several institutions that block investment in fossil fuel companies. ING analysts expect a rapid rebound in natural gas prices.
  • The price of natural gas closed yesterday down -0.18%. The price is currently above USD 1,697 per BTU.
  • Weekly natural gas production in the United States is 115 billion cubic feet. Imports of this commodity from Canada amount to 3.8 billion cubic feet. On the demand side, the volume is 107 billion cubic feet. As a result of the increase in supply relative to demand, the price of gas continues to correct.
  • Natural gas storage in Europe and the United States is at peak levels, awaiting summer demand with good volumes.
  • The natural gas price is above its 40-day moving average, looking to break through its current support at $1,702.

EURUSD

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$544
  • Example: 100 pips change in EURUSD price = USD1,000 potential PL.
  • Support 1: 1,0836
  • Support 2: 1,0833
  • Resistance 1: 1,0842
  • Resistance 2: 1,0845

Fundamental Analysis

  • Downward pressure on the EURUSD. Yesterday, the currency closed with a -0.53% correction. Today it continues to fall, this time by -0.23% to trade at 1.0835.
  • The Swiss Central Bank surprised the market by initiating an interest rate cut. The bank lowered rates from 1.75% to 1.50%.
  • In France, the PMI manufacturing and services indices came in at 45.8 and 47.8 respectively, indicating a contraction of the economy in both sectors.
  • In the euro zone, the manufacturing PMI came in at 45.7, in the contraction zone, and the services PMI at 51.1, in the expansion zone.
  • The Bank of England decided to keep interest rates unchanged at 5.25%.
  • The EUR/USD is moving away from its last resistance level at 1.0835. The price is below the 40-day moving average. The bears are looking to break the 1.0800 area.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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