SUMMARY

  • The Fed has decided to maintain interest rates at 5.50% per annum.
  • Analysts consider it unlikely that the Fed will start cutting rates in 2024.
  • The USD/JPY started May with a significant correction of -2.11% after the Bank of Japan’s intervention in the foreign exchange market.
  • Mastercard posted mixed results, beating earnings per share expectations, but falling short of sales.
  • Pfizer beat market expectations.

 

Major events:

  • Spanish manufacturing PMI
  • Italian manufacturing PMI
  • French manufacturing PMI
  • German manufacturing PMI
  • Euro zone manufacturing PMI index
  • New claims for unemployment benefits in the U.S.

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2321.91
  • Support 2: 2319.6
  • Resistance 1: 2326.51
  • Resistance 2: 2328.8

Fundamental Analysis

  • The FED has decided to maintain interest rates at 5.50% per annum. According to the FOMC statement, the outlook is uncertain and inflation is currently showing signs of recovery. Therefore, a decision to start cutting interest rates has been ruled out for the time being.
  • ADP nonfarm payrolls increased to 192,000 versus 179,000 expected. The result is positive and may indicate a favorable sign for NFP.
  • U.S. manufacturing PMI came in at 50, beating expectations of 49.9 and settling in the zone of economic expansion.
  • Eurozone manufacturing PMI is expected to come in at 45.6, i.e. in the contraction zone.
  • New claims for unemployment benefits in the U.S. will come in at 212,000.

NASDAQ 100

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$177
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 17529.34
  • Support 2: 17517.92
  • Resistance 1: 17549.59
  • Resistance 2: 17558.42

Fundamental Analysis

  • Analysts believe it is unlikely that the Fed will start cutting rates in 2024. Wall Street indices closed mixed. The Nasdaq 100 closed down -0.76%. At the moment, the index is trying to rebound, up +0.61% and trades at 17,545 points.
  • Starbucks recorded a significant correction of -15.88%, due to delays in the service of its coffee shops. On the other hand, AMD shares corrected -8.91%, due to market dissatisfaction with the presentation of its artificial intelligence chip.
  • The cryptocurrency sector continued to correct. Bitcoin corrected during yesterday’s session by more than -4% and Ethereum by -2.32%.
  • The index is below but close to the 200-day moving average line, indicating an increase in buying volume.

USDJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 155,93
  • Support 2: 155,76
  • Resistance 1: 156,28
  • Resistance 2: 156,46

Fundamental Analysis

  • USD/JPY started May with a significant correction of -2.11% after the Bank of Japan’s intervention in the currency market. The price managed to drop to the 154 support, before rebounding to its current level of 155.78.
  • Japanese exporters are increasing the volume of forward hedges on the current yen price. Analysts expect further intervention by the Bank of Japan.
  • Leading free-market advocates are sharply criticizing the BoJ, as it was the BoJ that allowed the USDJPY to reach the 161 level.
  • The Chicago Mercantile Exchange saw the highest trading volume for USDJPY, indicating more open interest from traders.
  • USDJPY is slightly below the 40-day moving average line. Price has managed to stay within a resistance zone. The price is halfway between the two Bollinger Bands.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

Risk Disclaimer

Any information/article/material/content provided in this document is intended to be used for educational purposes only and does not constitute investment advice or consultation on how the client should trade.

While the authors have ensured that the content of such information is accurate, they are not responsible for any omissions/errors/miscalculations and cannot guarantee the accuracy of any material or any information contained therein.

Therefore, any reliance you place on such material is strictly at your own risk. Please note that the responsibility for using or relying on such material rests with the customer and the company accepts no liability for any loss or damage including, without limitation, any loss of profit which may arise directly or indirectly from the use of or reliance on such information.