SUMMARY

  • Traders are eagerly awaiting the release of the US CPI, the most important data of the day.
  • According to the CEO of UBS, the bank should not be classified as “too big to fail” as it maintains strict liquidity controls.
  • Stock indexes show upward movements around the world awaiting the U.S. consumer price index (CPI) report.

 

Key events:

  • French CPI
  • EIA crude oil inventories
  • Eurozone GDP
  • Eurozone industrial production
  • U.S. CPI
  • U.S. Retail Sales
  • Japan GDP
  • Japan Industrial Production

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2355.3
  • Support 2: 2353.1
  • Resistance 1: 2359.38
  • Resistance 2: 2361.26

Fundamental Analysis

  • Traders are eagerly awaiting the release of the US CPI, the most important data of the day. Inflation is expected to come in at +3.6% year-on-year. In his comments yesterday, Fed Chairman Jerome Powell indicated that it may take longer than expected to reach the 2% annual inflation target.
  • US retail sales are expected to increase +0.4% m-o-m, which would confirm rising domestic demand in the country.
  • Japan’s annual GDP is expected to fall by 1.5% y-o-y, posing a challenge for the Bank of Japan, which needs to get back on the path of economic growth.
  • Gold prices rose 0.75% yesterday as buying positions continued to increase. The focus is on easing market volatility due to US CPI.
  • The price is rising in a resistance zone, just above the 200-day moving average. The weekly target remains at USD 2380 per troy ounce.

USDCHF

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDCHF price = USD1,000 potential PL.
  • Support 1: 0.9062
  • Support 2: 0.9060
  • Resistance 1: 0.9066
  • Resistance 2: 0.9068

Fundamental Analysis

  • According to the CEO of UBS, the bank should not be classified as “too big to fail” as it maintains tight liquidity controls. Meanwhile, the USDCHF corrected -0.18% yesterday, but remains close to the pivot point line at 0.9060.
  • Markets reacted to Powell’s announcement that interest rates will remain high for longer than expected. This was in exchange for inflation not falling at the expected pace.
  • In recent days, the Swiss National Bank has increased its foreign exchange reserves by 720 billion Swiss francs. The bank has thus focused on strengthening the CHF to fight inflation.
  • The USDCHF is below its 200-day moving average, perhaps trying to enter a support zone. The price could fall towards 0.9044.

NASDAQ 100

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$181
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 18411.50
  • Support 2: 18402.25
  • Resistance 1: 18427.00
  • Resistance 2: 18433.25

Fundamental Analysis

  • Stock indexes show upward movements around the world as the release of the consumer price index (CPI) in the United States approaches. The Nasdaq 100 is currently up by 0.06% to 18,426 points.
  • Demand for new housing in China continues to fall, which has analysts concerned about a contagion effect in the region.
  • The US government is considering sending a new Patriot missile battery to Ukraine. The country suffers constant attacks from Russia.
  • Uber shares corrected -1.05% following the announcement of the $950 million acquisition of Hero.
  • Alphabet shares are up 0.71% after the announcement of new investments in artificial intelligence.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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