SUMMARY

  • In Japan, core CPI came in at 1.8%, above the 2.2% expected. On the other hand, the US Conference Board came out at 102, better than the 96 expected.
  • Goldman Sachs FX analysts believe the Fed will maintain its tightening policy through 2024.
  • Analysts at Citi continue to stress the warning of upward inflationary pressures in the US. On the other hand, the Ethereum ETF is generating more volume in the sector.

 

KEY EVENTS:

  • Spanish retail sales
  • German CPI
  • API Weekly Crude Oil Inventories
  • Swiss National Bank Board Statements

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2353.23
  • Support 2: 2350.66
  • Resistance 1: 2359.66
  • Resistance 2: 2363.52

Fundamental Analysis

  • In Japan, core CPI came in at 1.8%, above the 2.2% expected. On the other hand, the US Conference Board came in at 102, better than the expected 96. The gold price is currently correcting -0.17% and is trading at USD 2,357 per troy ounce.
  • The International Monetary Fund has forecast that China’s GDP will grow by 5% between now and 2024. The Chinese government continues to rescue the real estate sector, which should help the country’s economy to grow.
  • Nvidia continues to rise, boosted by the company’s $470 billion profit. Shares were up 6.98% yesterday.
  • Markets are closely watching the Trump judge’s decision. His continuity in the race for the US presidency depends on it.
  • Gold remains sideways at $2,356, with the price still below its 200-day moving average.

EURUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$542
  • Example: 100 pips change in EURUSD price = USD1,000 potential PL.
  • Support 1: 1.0844
  • Support 2: 1.0841
  • Resistance 1: 1.0852
  • Resistance 2: 1.0857

Fundamental Analysis

  • Goldman Sachs FX analysts believe the Fed will maintain its tightening policy through 2024. The Chicago Mercantile Exchange’s rate cut indicator indicates that the probability of a Fed rate cut in September is 47%, down from 60% the previous week.
  • The ECB rate cut was on the Eurogroup’s agenda. The ECB’s inflation target is close to 2% per annum.
  • Analysts expect the dollar to strengthen in the long term.
  • German CPI is forecast at 2.4%, in line with ECB forecasts.
  • Spanish retail sales are expected to grow by 0.6% y/y.
  • EUR/USD has crossed the 200-day moving average line to the downside, indicating a loss of strength from buyers. The price is close to the support at 1.0848.

DOW JONES

Specifications

  • Leverage: 200
  • Units: 1
  • Margin requirement: USD$195
  • Example: movement of 100 points= $1,000 potential PL.
  • Support 1: 38819.66
  • Support 2: 38807.33
  • Resistance 1: 38855.66
  • Resistance 2: 38879.33

Fundamental Analysis

  • Citi analysts continue to point to the warning of upward inflationary pressures in the US. On the other hand, the Ethereum ETF is generating more volume in the sector. The Dow Jones is currently correcting -0.33% and trades at 38,815 points. Yesterday it closed down -0.60%.
  • Chevron has received the go-ahead from the Hess shareholders’ meeting to buy the company. The operation would amount to 53 billion dollars.
  • During yesterday’s session, the Dow Jones stocks that rose the most were Intel +1.11%, Home Depot +1.11%, and Chevron +0.81%.
  • Index stocks that corrected the most were Merck -2.61%, Amgen -1.85%, and McDonalds, a company that said it would cut the price of its menu items, fell -1.77%.
  • The index is in the lower Bollinger band, which may generate heavy volume buying. The price is still below the 200-day moving average.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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