Daily Market Analysis By FXOpen

[FXOpen Trader]

S&P 500 Price Consolidates ahead of Earnings Season

On April 4, we wrote that the S&P 500 is showing signs of weakness around the 5,250 level. How is the situation on the stock market developing by today, which is the start of the reporting season for the first quarter?

The S&P 500 fell sharply on Wednesday amid higher-than-expected inflation data.

But the S&P 500 rose yesterday after data showed producer prices rose only slightly in March.

According to Forexfactory:

→ Producer Price Index (PPI) in monthly terms: actual = 0.2%, forecast = 0.3%, a month ago = 0.6%;

→ Core PPI in monthly terms: actual = 0.2%, forecast = 0.2%, a month ago = 0.3%.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

 

[FXOpen Trader]

Watch FXOpen's 8 - 12 April Weekly Market Wrap Video

Weekly Market Wrap With Gary Thomson: FTSE, NZD/USD, USD, USD/JPY

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

• FTSE 100's Holy Grail of 8,000 Continues to Be a Pipe Dream
• NZD/USD Rate Increases after the Decision of the Reserve Bank of New Zealand
• Inflation Data Sharply Strengthens the US Dollar
• USD/JPY Rises to Highest Since 1990

Stay in the know and empower yourself with our short, yet power-packed video.

Watch it now and stay updated with FXOpen.

Don't miss out on this invaluable opportunity to sharpen your trading skills and make informed decisions.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

#fxopen #fxopenyoutube #fxopenint #weeklyvideo

 

[FXOpen Trader]

Brent Oil Price Did Not Rise Despite Iran's Attack on Israel

As you know, Iran launched a missile attack on Israel over the weekend. This could greatly increase the price of Brent oil, given that Iran is one of the top 10 oil producing countries, and the fact of the strike could provoke further escalation in the region.

However, at the beginning of the trading week, the price of Brent oil is below the levels at which they were at the end of last week. How so?

It is acceptable to assume the impact that the price reflects market risks and the expectations of its participants:
→ As the media wrote last week, the blow was expected after Israel’s attack on the Iranian mission.
→ The risk of escalation is not as high as it could be. According to the Washington Post, Biden advises Netanyahu to “slow down” after the Iranian attack. Administration officials said the United States would not join in any response to Tehran's attack and suggested Israel avoid escalation.

How might the situation develop further on the oil market?

From the point of view of technical analysis of the price of Brent oil, as we wrote on April 4, the upper limit of the blue channel is around USD 92 per barrel of Brent.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the FXOpen INT company only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the the FXOpen INT, nor is it to be considered financial advice.

 

[FXOpen Trader]

Hong Kong Stocks Become Top Risers After Wild Ride Subsides

Hong Kong enjoyed a sterling reputation for an entire century as a highly polished, utterly stable mantlepiece upon which global corporations could comfortably sit and where an international talent base could reside in fabulous surroundings and approach European, American, African and Asian markets with aplomb.

Its financial markets economy has been recognized as one of the most developed in the world to the extent that despite its tiny size, it has its own reserve currency, which is a bastion of fiscal might on the world stage.

These days, however, things are somewhat different as the independent nature of Hong Kong is now a fading memory, and its return to governance under the auspices of mainland China is now widely accepted.

Having conceded its position as the world's meeting place to other global cities such as Singapore and Dubai, Hong Kong has gone through a sea change over recent years, which is reflected in its stock market performance.

At the beginning of 2024, it had become clear that several decades of wealth generation among Hong Kong-based businesses had been eroded since the realm of power was handed back to China, with the stock market being valued at a lower point than when Hong Kong's British era ended in 1997 at the expiry of the lease at which point Hong Kong became a Special Administrative Region of China.

That is quite some depreciation. Since the beginning of this year, however, swathes of volatility have been clearly apparent in Hong Kong's Hang Seng 50 Index.

Going back over the years, performance has been incredibly volatile, to say the least. Back in 2022, the variations were simply incredible. On January 6 that year, the Hang Seng 50 index was at 21869.8 points according to FXOpen pricing. However, this plunged dramatically to 14,849 just four days later on January 10.

A similar situation took place at the beginning of last year; however, by January 2024, stock prices in Hong Kong were not only at a very low point but also stagnant.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the FXOpen INT company only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the the FXOpen INT, nor is it to be considered financial advice.

 

[FXOpen Trader]

XAU/USD Gold Price Reaches an Important Resistance Zone

The XAU/USD gold chart today indicates that the historical record price of the metal is above USD 2,400 per ounce.

In addition to fears of a new round of inflation due to rising commodity prices, geopolitical tensions are seen as the most important reason for the growth. At the moment, there are both active military conflicts on the planet (Ukraine, Israel-Iran), and there is a threat of creating new ones (Taiwan, for example). The US national debt and upcoming elections may also act as a destabilizing factor.

Therefore, gold acts as a traditional safe-haven asset. According to Goldman Sachs analysts, gold is in an “unshakable bull market”, so they raised their gold price forecast from USD 2,300 to USD 2,700.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the FXOpen INT company only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the the FXOpen INT, nor is it to be considered financial advice.

 

[FXOpen Trader]

Market Analysis: EUR/USD Nosedives While USD/JPY Extend Rally

EUR/USD started another decline and traded below 1.0700. USD/JPY surged and broke the 154.00 resistance zone.

Important Takeaways for EUR/USD and USD/JPY Analysis Today

• The Euro started a fresh decline below the 1.0695 support zone.
• There was a break above a key bearish trend line with resistance at 1.0630 on the hourly chart of EUR/USD at FXOpen.
• USD/JPY climbed higher above the 153.40 and 154.25 levels.
• There is a connecting bullish trend line forming with support at 154.25 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair struggled to clear the 1.0870 resistance zone. The Euro started a fresh decline and traded below the 1.0755 support zone against the US Dollar, as mentioned in the previous analysis.

The pair even declined below 1.0695 and tested the 1.0600 zone. A low was formed near 1.0601 and the pair is now correcting losses. There was a break above a key bearish trend line with resistance at 1.0630.

On the upside, the pair is now facing resistance near the 23.6% Fib retracement level of the recent decline from the 1.0755 swing high to the 1.0601 low at 1.0635. The next key resistance is near the 1.0665 level.

The main resistance is 1.0695 or the 61.8% Fib retracement level of the recent decline from the 1.0755 swing high to the 1.0601 low. A clear move above the 1.0695 level could send the pair toward the 1.0755 resistance.

An upside break above 1.0755 could set the pace for another increase. In the stated case, the pair might rise toward 1.0870. If not, the pair might resume its decline. The first major support on the EUR/USD chart is near 1.0600.

The next key support is at 1.0580. If there is a downside break below 1.0580, the pair could drop toward 1.0565. The next support is near 1.0550, below which the pair could start a major decline.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the FXOpen INT company only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the the FXOpen INT, nor is it to be considered financial advice.

 

[FXOpen Trader]

USD/JPY Analysis: Prospect of a Breakout of the Level of 155 Yen per Dollar

The USD/JPY rate has consistently reached new highs since 1990, approaching the psychological level of 155 yen per US dollar. The Japanese currency has already fallen about 9% against the dollar this year.

This is supported by Jerome Powell, who suggested yesterday that US interest rates are likely to remain high for longer. He refused to give any guidance on when interest rates might be cut, greatly dimming investors' hopes for significant easing this year.

Market participants now expect a 40 basis point rate cut in 2024, significantly lower than the 160 basis point easing they were counting on at the start of the year, according to FedWatch.

At the same time, traders are focused on whether Japanese monetary authorities will intervene to support the currency as it deteriorates rapidly. Officials have stepped up warnings of possible intervention, although analysts also say fighting the dollar's strong bullish trend will be difficult and costly. Japanese Finance Minister Shunichi Suzuki said on Tuesday he was closely monitoring the yen's exchange rate against the US dollar today and would take "strengthened response measures if necessary."

“Today, intervention can only help slow or contain the pace of depreciation, but cannot reverse the trend,” Kenneth Broux, head of exchange rate research at Societe Generale, told Reuters. Japan last intervened in the foreign exchange market in 2022, spending an estimated USD 60 billion to defend the yen.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the FXOpen INT company only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the the FXOpen INT, nor is it to be considered financial advice.

 

[FXOpen Trader]

UK100 Share Index Rises as UK Inflation Slows

Yesterday, the UK Office for National Statistics (ONS) reported that the CPI stood at 3.2% in March. According to ForexFactory, analysts expected 3.1%, and a month ago the index was 3.4%.

Grant Fitzner, chief economist at the ONS, said: “Once again, food prices were the main reason for the fall, with prices rising by less than we saw a year ago. Similarly to last month, we saw a partial offset from rising fuel prices.”

Thus, actual inflation in the UK fell to its lowest level in two and a half years. According to Yahoo Finance, this weakening of inflation could influence the Bank of England to start cutting interest rates from the current level of 5.25% in June.

In anticipation of an easing of monetary policy, the values of the UK stock index UK100 increased yesterday. Today it is above the 7,900 level.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the FXOpen INT company only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the the FXOpen INT, nor is it to be considered financial advice.

 

[FXOpen Trader]

The Dollar is Corrected after the Comments of the Head of the Federal Reserve

Good data on the labour market in the United States and the continuous rise in inflation for several months are helping to reduce experts’ expectations about a change in the vector of monetary policy in the United States. Recent comments from the head of the Federal Reserve confirm the fears of market participants. At a speech at the Wilson Center in Washington on Tuesday, Jerome Powell said: "More confidence will be needed that inflation is moving sustainably toward 2 percent before it is appropriate to ease policy." Such statements undoubtedly should have supported the US currency, but judging by the movement of the major currency pairs, dollar buyers simply need a little respite.

GBP/USD

At the beginning of the current five-day trading period, quite diverse statistics came from the UK:

• In February, the unemployment rate increased to 4.2% against the forecast of 4.0%
• The level of average wages rose to 5.6% versus 5.5%
• The level of average wages rose to 5.6% versus 5.5%

Such indicators allowed pound buyers to find and test support at 1.2400.

According to technical analysis for GBP/USD (Japanese candlesticks) on the daily timeframe, we have a bullish engulfing combination. If the price fixes above 1.2480, a corrective pullback for the pair may extend to 1.2540-1.2520. A refresh of the recent low could lead to the start of a new downward impulse in the direction of 1.2330-1.2280.

TO VIEW THE FULL ANALYSIS, VISIT THE FXOPEN BLOG


Disclaimer:This article represents the opinion of the FXOpen INT company only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the FXOpen INT, nor is it to be considered financial advice.

 

[FXOpen Trader]

Since the Start of the Week, Brent Oil Price Has Dropped over 4%

At the beginning of the week, March 15, we wrote that the price of Brent oil could form a correction from the resistance level of USD 91 per barrel. Since then, the price has decreased by more than 4% due to a number of factors:

→ easing concerns about the escalation of the conflict between Israel and Iran. Iran is the third-largest producer in the Organization of Petroleum Exporting Countries, according to Reuters, and easing its conflict with Israel reduces the likelihood of supply disruptions in the Middle East.

→ reduction in oil consumption. JP Morgan analysts noted this week that global oil consumption in April stood at 101 million barrels per day, 200,000 barrels below forecast.

→ growth in oil reserves in the USA. Crude oil inventories rose 2.7 million barrels last week, the EIA reported.

TO VIEW THE FULL ANALYSIS, VISIT THE FXOPEN BLOG

Disclaimer:This article represents the opinion of the FXOpen INT company only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the FXOpen INT, nor is it to be considered financial advice.