SUMMARY

  • The Bank of England maintained its interest rate at 5.25%.
  • New claims for unemployment benefits in the United States totaled 231,000, less than the 212,000 expected by the market.
  • The French oil and gas company Total plans to float its shares on the New York stock exchange.
  • Important day for the British economy. Yesterday, the Bank of England kept interest rates at 5.25%. Today, GDP will be released, which is expected to increase +0.1% m-o-m.

 

Key developments:

  • UK annual GDP.
  • ECB monetary policy meeting minutes.
  • Canadian unemployment rate

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2346.68
  • Support 2: 2342.91
  • Resistance 1: 2355.06
  • Resistance 2: 2359.67

Fundamental Analysis

  • The Bank of England maintained its interest rates at 5.25%. New claims for unemployment benefits in the United States stood at 231,000, below the 212,000 expected by the market. The 30-year bond yield stood at 4.635%. The gold price is currently up +0.15% at USD 2,349 per troy ounce.
  • Traders are eagerly awaiting the UK GDP release at the end of the week. We will also see the minutes of the ECB monetary policy meeting, which are important to anticipate rate cuts.
  • The Biden administration is considering imposing additional tariffs on electric vehicles from China.
  • Gold prices rallied +1.63% yesterday, breaking above the 200-day moving average line and the upper Bollinger band. The price reached the Bulls’ weekly target of USD 2,349.

WTI

Specifications

  • Leverage: 100
  • Units: 1,000
  • Margin requirement: USD$782
  • Example: movement of USD$1 = $1,000 potential PL.
  • Support 1: 79,65
  • Support 2: 79,59
  • Resistance 1: 79,76
  • Resistance 2: 79,81

Fundamental Analysis

  • French oil and gas company Total plans an initial public offering of its shares on the New York Stock Exchange. The price of WTI is currently up 0.61% at $79.74 a barrel.
  • Australia wants to increase its natural gas production capacity to boost its natural gas exports.
  • China controls 80% of the global solar panel supply chain, giving it considerable bargaining power. Chinese electric vehicle companies want to bring 70 new models to market by 2024.
  • Barclays has said it supports fracking as a necessary part of the energy transition.
  • The WTI price crosses the 200-day moving average line, looking to rise towards the $80 per barrel area.

GBPUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 1.2513
  • Support 2: 1.2509
  • Resistance 1: 1.2520
  • Resistance 2: 1.2523

Fundamental Analysis

  • An important day for the British economy. Yesterday, the Bank of England kept interest rates unchanged at 5.25%. Today we will know the GDP, which is expected to increase by 0.1% m-o-m.
  • British industrial production is expected to fall by 0.5%. Manufacturing production is also expected to fall 0.5%. The country’s trade balance is expected to be -$14.5 billion.
  • Traders are awaiting statements from the deputy members of the Bank of England.
  • Net speculative positions in sterling, according to the CFTC, are expected to be -29,000 contracts.
  • GBPUSD is slightly below its 200-day moving average, trying to break above the 1.2515 support zone.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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