SUMMARY

  • Traders are preparing for the continuation of the May 2024 corporate earnings season.
  • The current oil price has not convinced the Biden administration to start increasing the country’s strategic oil reserves.
  • The US NFP results generated a quick upward move for the GBPUSD, which managed to climb towards the 1.2633 level, to finally close at 1.2545 on Friday.

Main events:

  • PMI services Spain
  • Eurozone services PMI
  • Germany services PMI
  • Japan services PMI
  • Australian interest rate decision

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2297.86
  • Support 2: 2294.25
  • Resistance 1: 2303.32
  • Resistance 2: 2305.17

Fundamental Analysis

  • Traders are preparing for the continuation of the corporate earnings season for calendar May 2024. Gold prices closed Friday with a slight correction of -0.06%, following the announcement of NFP of 175K versus 238K.
  • The gold price started the week holding above the USD$2310 per troy ounce area. This week will see a number of monetary policy decisions as well as several macroeconomic reports of major market importance, such as UK GDP.
  • Traders continue to anticipate the corporate earnings season, so long positions in gold may be trending lower.
  • The price of the metal is re-entering a resistance zone. At the moment, it remains below its 200-day moving average. The price managed a significant rebound after falling to support and the lower Bollinger band at 2,284 USD.

WTI

Specifications

  • Leverage: 100
  • Units: 1,000
  • Margin requirement: USD$782
  • Example: movement of USD$1 = $1,000 potential PL.
  • Support 1: 78,05
  • Support 2: 77,95
  • Resistance 1: 78,20
  • Resistance 2: 72,25

Fundamental Analysis

  • Exxon Mobil has successfully completed the acquisition of Pioneer. The transaction was closed for US$60 billion.
  • The British government grants 31 new oil and gas exploration licenses in the North Sea.
  • Glencore takes steps to buy Anglo American. Anglo American rejected a $38.8 billion takeover offer from BHP.
  • The current price of oil has not convinced the Biden administration to begin increasing the country’s strategic oil reserves.
  • The 7.3 million barrel increase in U.S. crude inventories has led to a correction in the price of WTI. The price is now just below the lower Bollinger band, which could trigger a price rebound.

GBPUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 1.2545
  • Support 2: 1.2541
  • Resistance 1: 1.2554
  • Resistance 2: 1.2559

Fundamental Analysis

  • The NFP results in the U.S. generated a rapid upward movement of the currency, which managed to climb towards the 1.2633 level, to finally close at 1.2545 on Friday.
  • Traders are eagerly awaiting the Bank of England meeting on May 9. Last week was marked by the Bank of Japan’s abrupt intervention in the yen’s uptrend, which triggered a correction of the currency.
  • UK GDP data will set the tone for sterling this week. In addition, rising costs for UK importers due to Brexit are also starting to put pressure on GBPUSD.
  • GBPUSD is above the 200-day moving average, indicating increased buying volume. The price is at the 1.2545 resistance. Bulls are looking for a bounce towards 1.2650.
  • Traders are looking to take positions ahead of this week’s Bank of England interest rate decision.

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.