SUMMARY

  • Traders are awaiting the Bank of England’s interest rate decision. The Bank is expected to hold rates at 5.25% per annum.
  • Chinese imports increased by 8.4%, exceeding expectations of a 5.4% increase. This indicates that the country is buying more products on the international market, including raw materials such as oil.
  • In the United Kingdom, the mortgage interest rate remained stable at 7.92%. The RICS house price index fell 5%, worsening forecasts of 2%.
  • Uber failed to beat investor expectations for earnings per share.
  • Airbnb, meanwhile, beat market expectations.

 

KEY EVENTS:

  • Bank of England interest rate decision.
  • New U.S. jobless claims.
  • Fed balance sheet

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2310.23
  • Support 2: 2308.06
  • Resistance 1: 2313.82
  • Resistance 2: 2315.24

Fundamental Analysis

  • Traders are awaiting the Bank of England’s interest rate decision. The Bank is expected to hold rates at 5.25% per annum. Gold is currently trading around USD 2,321 per troy ounce.
  • Today, the Governor of the Bank of England will explain the interest rate decision.
  • We will also have statements from the President of the Bundesbank and De Guindos as Vice President of the ECB.
  • In the United States, 212,000 new jobless claims are expected.
  • The price of gold is at the same level as its 200-day moving average. If the price breaks above this level, it will enter the resistance zone. Buyers in the market keep their target at 2343 USD.

WTI

Specifications

  • Leverage: 100
  • Units: 1,000
  • Margin requirement: USD$782
  • Example: movement of USD$1 = $1,000 potential PL.
  • Support 1: 79,40
  • Support 2: 79,35
  • Resistance 1: 79,49
  • Resistance 2: 79,53

Fundamental Analysis

  • Chinese imports increased by +8.4%, exceeding expectations by 5.4%. This indicates that the country is buying more products on the international market, including raw materials such as oil. WTI is currently up +0.56% and is trading at USD 79.43 per barrel.
  • Domestic demand for gasoline and diesel in the US has increased.
  • Russia has launched a wave of attacks on Ukraine’s energy infrastructure. The aim is to deprive the country of energy.
  • Norway intensifies its oil and gas exploration campaign. The goal remains to increase exports to the European Union.
  • The price is below its 200-day moving average, but the uptrend continues. The price is close to entering the $80 per barrel zone.

GBPUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 1.2494
  • Support 2: 1.2490
  • Resistance 1: 1.2502
  • Resistance 2: 1.2506

Fundamental Analysis

  • In the United Kingdom, the mortgage rate remained stable at 7.92%. The RICS house price index fell by 5%, worsening from forecasts of 2%. GBPUSD currently loses -0.04% and stands at 1.2492.
  • The most important news of the day is the Bank of England’s interest rate decision. Analysts believe that a rate cut is unlikely as UK inflation remains far from the 2% annual target. Therefore, rates are likely to remain steady at 5.25%, at least until the September 2024 meeting.
  • Another important factor today is the Bank of England Governor’s statement, which will give signals to the market about the Bank’s monetary policy strategy.
  • GBPUSD is trading below its 200-day moving average, continuing its advance above support at 1.2492. Possible fall towards the lower Bollinger band, where a buy move will be generated.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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