SUMMARY

  • Retail sales in the euro zone increased by 0.8% m-o-m, beating the 0.6% expected by the market.
  • According to the API, weekly crude oil inventories in the United States increased by 509,000 barrels. Due to the increase in supply, the price of WTI continues to fall.
  • The Halifax UK house price index rose by +0.1% month-on-month. However, it did not beat market expectations of +0.2%. On an annual basis, the index was up 1.1%.

 

KEY EVENTS:

  • German industrial production.
  • EIA crude oil inventories
  • Brazil interest rate decision
  • China trade balance

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2310.6
  • Support 2: 2303.97
  • Resistance 1: 2320.69
  • Resistance 2: 2324.15

Fundamental Analysis

  • Retail sales in the Eurozone increased by 0.8% m-o-m, exceeding the 0.6% expected by the market. This result is important because it indicates an increase in demand in Europe, a key factor for capital inflows and economic growth.
  • The yield on the 3-year bond auction reached +4.605%, an improvement from the previous 4.548%.
  • German industrial production is expected to contract -0.6% month-on-month.
  • According to delegates on FTX’s restructuring process, the company has cash surpluses to meet principal and interest payments to creditors.
  • Gold has managed to hold at the 200-day moving average. The price remains near the resistance zone. Bulls are targeting USD 2,349 per troy ounce.

WTI

Specifications

  • Leverage: 100
  • Units: 1,000
  • Margin requirement: USD$782
  • Example: movement of USD$1 = $1,000 potential PL.
  • Support 1: 78,00
  • Support 2: 77,92
  • Resistance 1: 78,18
  • Resistance 2: 78,28

Fundamental Analysis

  • According to the API, weekly crude oil inventories in the United States increased by 509,000 barrels. As a result of the increase in supply, the price of WTI continues to fall. Currently, WTI is down -0.38% to USD 78.08 per barrel.
  • The European Union is considering imposing economic sanctions on Russia over LNG.
  • Given the current level of oil prices, the US Department of Energy has announced the likely start of physical purchases to increase the country’s strategic reserves. Given the large volumes at stake, the price could rise again.
  • As a member of OPEC+, Russia has announced that it is willing to make further oil production cuts to help the price reach and consolidate the USD 80 per barrel zone.
  • The price is below the 40-day moving average and remains above the USD 78 support.

GBPUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 1.2484
  • Support 2: 1.2482
  • Resistance 1: 1.249
  • Resistance 2: 1.2494

Fundamental Analysis

  • The Halifax UK house price index rose +0.1% month-on-month. However, it did not exceed market expectations of +0.2%. On an annual basis, the index rose by 1.1%. The +1.1% year-on-year increase in house prices indicates an increase in demand in the UK construction sector, an important factor for the country.
  • The PMI index for the UK construction sector came in at 53 points, exceeding market expectations (50.4). Like the previous indicator, this data shows that the sector is in economic expansion.
  • Today, the mortgage interest rate is announced. The previous rate was 7.92%.
  • Today we will also know the RICS index, which also assesses the behavior of real estate prices in the UK. For this indicator, a drop of -2% is expected.
  • GBPUSD is below its 200-day moving average. The price is approaching the lower Bollinger band, which could attract buyers’ attention.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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