SUMMARY

  • Canada’s monthly CPI came in at 0.5%, down one point from the previous month.
  • USD/JPY closed yesterday’s trading session with a slight pullback of -0.08%, remaining sideways around the 156.27 level. At the moment, the currency has resumed its upward movement, rising +0.11% to trade at 156.31.
  • Weekly crude inventories, according to the API, increased by +2.4 million barrels in the US.

 

Main events:

  • UK IPP.
  • Statements by Christine Lagarde, President of the ECB
  • U.S. used home sales
  • EIA crude oil inventories
  • FOMC meeting minutes
  • Japan Services PMI

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2413.83
  • Support 2: 2409.75
  • Resistance 1: 2424.27
  • Resistance 2: 2430.63

Fundamental Analysis

  • Canada’s monthly CPI was 0.5%, down one basis point from the previous month.
  • The Reserve Bank of New Zealand maintained its interest rate at 5.50%.
  • UK CPI is expected to increase by 2.1% y-o-y. The BoE is watching the results as inflation nears the 2% target, which would be the signal for the bank to start cutting interest rates. It is possible that the BoE will make the first rate cut at the June 2024 meeting.
  • Today, investors are watching the FOMC meeting minutes, which include the analysis of inflation developments.
  • Gold corrects a few points and approaches the $2,407 support. The price remains above its 200-day moving average.

USDJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 156.23
  • Support 2: 156.17
  • Resistance 1: 156.33
  • Resistance 2: 156.37

Fundamental Analysis

  • The USD/JPY closed yesterday’s trading session with a slight decline of -0.08%, remaining sideways around the level of 156.27. Today, the currency has resumed its upward movement, rising +0.11% to trade at 156.31.
  • US 10-year Treasury yields are correcting -0.05%, supporting yesterday’s bearish move in USDJPY, as there is a strong correlation between the two assets.
  • The currency is above its 200-day moving average and is targeting the 156.95 resistance zone. The moving averages and RSI point to buying.
  • Japanese exports rose 8.3%, but failed to beat market expectations of +11.1%.
  • Services PMI is expected to come in at 54.3, i.e. in the zone of economic expansion.
  • The BoJ assesses the performance of business activity in the country.

WTI

Specifications

  • Leverage: 100
  • Units: 1,000
  • Margin requirement: USD$794
  • Example: movement of USD$1 = $1,000 potential PL.
  • Support 1: 77,98
  • Support 2: 77,92
  • Resistance 1: 78,10
  • Resistance 2: 78,16

Fundamental Analysis

  • According to the API, weekly crude inventories increased by 2.4 million barrels in the United States. Following this result, the WTI price ended yesterday with a decrease of -1.26%. It is currently trading at USD 78.08 per barrel, down another 0.74%.
  • The US Department of Energy is going to release 1 million barrels of oil from its strategic reserves. This would cause a drop in the market price, due to the increase in supply.
  • Total is going to develop an oil and gas project offshore Angola for an estimated value of $6 billion.
  • The WTI price is below the 200-day moving average and is looking to break above the USD 78 and USD 77 supports. The price is near the lower Bollinger band. The moving averages and RSI indicate a massive sell-off.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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