SUMMARY

  • Today we will have the statements of Christine Lagarde, as president of the ECB, who will present her analysis on the evolution of inflation in the eurozone, and on the possible start of interest rate cuts.
  • 4 consecutive days of positive closes for USDJPY, indicating that technically the currency was in an uptrend, until the Bank of Japan intervened in the market, causing the currency to fall to 154 support.
  • China and Iraq sign a long-term agreement to exploit new natural gas and oil fields.

 

Main events:

  • Statements by Christine Lagarde, President of the ECB.
  • Eurogroup meeting
  • Canadian CPI
  • U.S. API crude oil inventories
  • Japanese trade balance
  • New Zealand central bank interest rate decision

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2425.63
  • Support 2: 2422.29
  • Resistance 1: 2431.16
  • Resistance 2: 2433.35

Fundamental Analysis

  • Today we will have statements from Christine Lagarde, President of the ECB, who will present her analysis of the evolution of inflation in the euro zone and the possible start of interest rate cuts.
  • Stock markets are volatile as geopolitical tensions rise following the International Criminal Court’s announcements on the leaders of Israel and Hamas.
  • Canadian CPI is expected to come in at 2% year-over-year, down 1 basis point month-over-month.
  • The Reserve Bank of New Zealand is expected to keep interest rates unchanged at 5.50% y/y.
  • The gold price remains above its 200-day moving average. The metal has fallen from USD 2,449 to the current level of USD 2,419 after breaking above the upper Bollinger band.

USDJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 156.44
  • Support 2: 156.40
  • Resistance 1: 156.51
  • Resistance 2: 156.54

Fundamental Analysis

  • 4 consecutive days of positive closing for USDJPY, indicating that technically the currency was in an uptrend, until the Bank of Japan intervened in the market, causing the currency to fall to 154 support.
  • Yesterday, the currency closed higher by +0.41%. Currently, the USDJPY is up +0.15% and trades at 156.47. Long-term traders are looking to break above the 157 level, which is at the upper Bollinger band.
  • The price is above the 200-day moving average. Price enters resistance at 156.83. If this area is breached, the next level is 157. If this target is reached, the next level without resistance is 160.
  • The Bank of Japan has several concerns. One is the performance of the country’s labor market. Another key factor is the domestic market’s acceptance of the interest rate hike. It is possible that this measure will detract from the competitiveness of companies accustomed to very low interest rates.

WTI

Specifications

  • Leverage: 100
  • Units: 1,000
  • Margin requirement: USD$794
  • Example: movement of USD$1 = $1,000 potential PL.
  • Support 1: 78,96
  • Support 2: 78,86
  • Resistance 1: 79,23
  • Resistance 2: 79,40

Fundamental Analysis

  • China and Iraq have signed a long-term agreement to exploit new natural gas and oil fields.
  • Thermal coal continues to be the main source of electricity generation in the United States. U.S. gasoline prices continue to decline for the fourth consecutive week.
  • Saudi Arabian oil exports increase for the ninth consecutive month.
  • Traders anticipate a drop in physical demand for oil worldwide due to slowing industry growth.
  • The largest U.S. pension fund is expected to vote against Exxon Mobil’s board of directors.
  • The price of crude oil has broken above the 200-day moving average. The price is approaching the support zone of USD 78.90. The price has risen above USD 80 as a result of increased geopolitical tensions.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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