SUMMARY

  • The Eurozone services PMI came in at 53.3, above forecasts (52.9). In Japan, it came in at 54.3, against the forecast of 54.6. The gold price remains above USD 2,322 per troy ounce.
  • OPEC+ is studying the possibility of increasing production cuts for the June 2024 meeting. The institution is aiming for a level above USD 80 a barrel.
  • The BRC retail sales index for April fell by 4.4%. The market was expecting a +1.6% increase. As a result, GBPUSD is down -0.05% and trades at 1.2555.

 

KEY EVENTS:

  • Eurozone retail sales.
  • Eurogroup meeting
  • API crude inventories

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2319.43
  • Support 2: 2317.19
  • Resistance 1: 2324.17
  • Resistance 2: 2326.67

Fundamental Analysis

  • The Eurozone services PMI came in at 53.3, above forecasts (52.9). In Japan, it came in at 54.3, against the forecast of 54.6. The gold price remains above USD 2,322 per troy ounce.
  • Eurozone retail sales are expected to increase by 0.6% m-o-m. Eurogroup meeting continues, focusing on the economic recession and the war in Ukraine.
  • Xin Jinping’s summit in Europe continues. The president conveys to France the support they need to lower tensions between the West and the Asian country.
  • The case against Trump in the United States continues. Political tensions continue to rise.
  • Gold prices are above the 200-day moving average, looking for a continuation to reach the resistance zone.

WTI

Specifications

  • Leverage: 100
  • Units: 1,000
  • Margin requirement: USD$782
  • Example: movement of USD$1 = $1,000 potential PL.
  • Support 1: 78,67
  • Support 2: 78,63
  • Resistance 1: 78,77
  • Resistance 2: 78,83

Fundamental Analysis

  • OPEC+ is considering whether to increase production cuts for the June 2024 meeting. The institution is aiming for a level above $80 a barrel. WTI is currently up 0.36% at $78.76 a barrel.
  • Chevron analysts have told the market that demand for oil and gas will continue to increase, driven by growth in emerging economies.
  • Saudi Aramco is in talks with Shell to buy its Malaysian assets.
  • The Biden administration has banned government buildings from generating electricity from fossil fuels.
  • The WTI price is approaching the USD 79 resistance zone and remains below the 200-day moving average.

GBPUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 1.2555
  • Support 2: 1.2551
  • Resistance 1: 1.2561
  • Resistance 2: 1.2563

Fundamental Analysis

  • The BRC Retail Sales Index for April fell -4.4%. The market was expecting a +1.6% increase. As a result, GBPUSD is down -0.05% at 1.2555.
  • Halifax house price indices will be released today. An increase of +0.2% is expected.
  • The construction PMI index is expected to come in at 50.4, which is in the economic expansion zone. This indicator is essential to determine if the economy is still in recession.
  • Today we will have the statements of the FOMC delegates, who will assess inflation and economic growth in the United States.
  • GBPUSD is above its 200-day moving average. The price is near the resistance zone at 1.2600. The weekly buy target is at 1.2650.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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