السوق للأمام

ابق على اطلاع دائم بمعلومات السوق المهمة من سوق Pacific Union في المستقبل. يعد سوقنا في المستقبل طريقة رائعة للتحضير ليوم التداول القادم.

The US dollar index appreciated to the highest level yet since it…

The US dollar index appreciated to the highest level yet since it took off from 90.441 following the Federal Reserve’s surprise hawkish hold on 16 June

20210701
Share

Market Focus

Stocks were mixed on Wednesday, with the S&P 500 gaining for a fifth straight session to end the day at yet another record closing high. Dow Jones surged 0.61% to 34502, but Nasdaq declined 0.17% due to the poor performance of its main components. Look back on the first half of 2021, S&P 500 has increased by about 14.4%, Nasdaq by 12.5%, and Dow Jones by 12.7%.

Some of the biggest names in the hedge fund industry are wading deeper into crypto. Steve Cohen’s Point72 Asset Management is seeking to hire a head of cryptocurrencies, while the family office of billionaire George Soros has started trading Bitcoin, according to people familiar with the matter. Spokespeople for the firms declined to comment.

The moves, which were both reported earlier by TheStreet.com, come as a growing number of marquee hedge funds have begun to dabble in digital assets. Point72 rival Millennium Management has been active in crypto-related futures and exchange-traded funds, while Brevan Howard Asset Management and macro trader Paul Tudor Jones have begun investing in crypto. In March, hedge fund manager Dan Loeb said he was doing a “deep dive” into crypto.

“We are exploring opportunities around blockchain technology and its transformative and disruptive capabilities,” Point72 said in a May letter to investors seen by Bloomberg. “We would be remiss to ignore a now $2 trillion cryptocurrency market.”

In a March interview with Bloomberg Television’s Erik Schatzker, Dawn Fitzpatrick, who oversees Soros Fund Management, said that Bitcoin was interesting and that the firm had been making investments into crypto infrastructures, such as exchanges, asset managers, and custodians.

“There’s a real fear of debasing fiat currencies” that’s driving demand for crypto, Fitzpatrick said in the interview. “Bitcoin, I don’t think it’s a currency — I think it’s a commodity” that is easily stored and transferable, with a finite supply. She declined to say whether she owned any Bitcoin.

Main Pairs Movement

The US dollar index appreciated to the highest level yet since it took off from 90.441 following the Federal Reserve’s surprise hawkish hold on 16 June. Printing a high of 92.448, DXY traded at its best level since 8 April earlier this year.

A mix of strong US data, delta covid flows, hawkish Fed speakers, and anticipation of a healthy Nonfarm Payrolls report on Friday helped the greenback maintain its strong narrative in financial markets on Wednesday. Fed’s Robert Kaplan reaffirmed his hawkish stance and said, ”I’d want to taper sooner than the end of the year.”

The euro pair extended its losses sub-1.1900 to test the June lows in the 1.1840 price zone. Aussie fell further to break the 0.7500 level to score a fresh low of 0.7492, while the loonie pair continued to test bearish commitments through 1.2400 again in the New York session to print a high of 1.2421, recovering from the London sell-off.

Cable settled around 1.3830 and remains undermined by Brexit jitters related to the Northern Ireland Protocol. Sterling is also facing uncertainty over the spread of the Delta variant of COVID-19 in the UK. Earlier this month forced the government to delay full reopening.

Gold recovered from the fresh two-month lows in the $1,750s and tallied a gain of over 0.5% on the day, printing a high of $1,774.45 before ending by the closing bell near $1,770. WTI crude oil price rose from near the day’s lows of $72.84 on a big draw on US inventories ahead of the highly anticipated OPEC+ meeting with a spot near to $73.51 by the close of play on Wall Street. Meanwhile, Brent’s price moved roughly along with the WTI’s, closed the day at $74.64.

Technical Analysis

USDJPY (4- Hour Chart)

USDJPY climbs to daily highs above 110.70 level during the American session amid better-than-expected ADP data. After spending the majority of the week in a narrow range, the pair regains traction today, reaching as high as 111.09 at the time of writing. On the 4- hour chart, the intraday bias turns bullish as the pair trades within the ascending channel and it has reached the top of the ascending trend line, signaling that bullish momentum has been resumed. Additionally, the pair have officially traded above the 20 and the 50 simple moving averages, suggesting a bullish mode. From the technical indicator, the RSI has not reached the overbought territory, meaning that the pair still has rooms to extend further north before an adjustment. On the upside, if the pair ends up breaching its resistance of 111.12, then it will open up an accelerated path for bulls.

Resistance: 111.12

Support: 110.51, 110.14, 109.84

EURUSD (4- Hour Chart)

EURUSD declines below 1.1900 after the US ADP jobs figures have come with 692K, beating the estimates. From the technical aspect, EURUSD remains bearish, attempting to contest its current resistance at 1.1837 at the time of writing. A successful break of the resistance at 1.1837 will lead the pair to the next level at 1.1704, which is the lowest since April. On the support side, if the pair can sustain and settle above 1.1837, it will give a chance to move toward 1.1919. In the short- run, bears are expected to pause a bit as the RSI reading has reached below 30, an oversold territory, which allows the pair to bounce back. However, in a bigger outlook, the pair remains under pressure.

Resistance: 1.1919, 1.1985, 1.2052

Support: 1.1837, 1.1704 

GBPUSD (4- Hour Chart)

GBPUSD slides toward 1.3800 level as the US dollar edges higher on US upbeat ADP data. From the technical perspective, the intraday bias of the pair remains bearish as it trades well below the 50 and 100 simple moving averages. The RSI has not yet reached the oversold territory, giving bears more room to decline further and heading toward its immediate support of 1.3787. On the downside, a successful test of the support at 1.3787 will open the path to the next support at11111. On the upside, if the pair can recover above 1.3896, then it will head to challenge the next resistance at 1.3963 and 1.4017.

Resistance: 1.3896, 1.3963, 1.4017, 1.4072

Support: 1.3787

20210701
Share
Pack Up

A divided U.S. Supreme Court refused to lift the federal moratorium on…

A divided U.S. Supreme Court refused to lift the federal moratorium on evictions during the Covid-19 outbreak, leaving the ban in place until the end of July

20210630
Share

Market Focus

The three major indexes traded mixed Tuesday afternoon after gaining earlier in the day, with traders looking for fresh catalysts to rally beyond current record levels. The information technology and consumer discretionary sectors outperformed in the S&P 500. The tech-led session kept the Nasdaq in slightly positive territory (+0.19%). Dow Jones was little changed (+0.03%) as more than 1% drops in shares of Intel, Disney, and Boeing offset gains in other components including Nike, Home Depot, and Apple.

A divided U.S. Supreme Court refused to lift the federal moratorium on evictions during the Covid-19 outbreak, leaving the ban in place until the end of July.

Voting 5-4, the justices rejected calls by landlords and real-estate trade associations from Alabama and Georgia to block the moratorium while their challenge goes forward. They contend the Centers for Disease Control and Prevention exceeded its authority by imposing the spread of the coronavirus.

Chief Justice John Roberts and Justice Brett Kavanaugh joined the court’s three liberals in the majority. Kavanaugh said he was doing so because the moratorium is set to expire on July 31.

The ban applies to tenants who, if evicted, would have “no other available housing options.” The CDC and President Joe Biden’s administration say the moratorium is geared toward protecting tenants who would be forced to live in close quarters elsewhere or become homeless and dependent on shelters.

Main Pairs Movement

The greenback appreciated against most major rivals as the dollar index reached a five-day high above 92.00, especially against high-yielding currencies. There was no obvious catalyst for the gains as the greenback retreated in the final trading session of the day, despite better than anticipated US data.

The euro pair hovered below 1.1900, awaiting the upcoming inflation figures; cable settled around 1.3840, undermined by Brexit jitters related to the Northern Ireland Protocol. Aussie fell toward the 0.7500 level, while the loonie pair flirts with 1.2400. The American currency strength and the modest performance of Wall Street weighed on commodity-linked currencies.

Gold plummeted to a fresh two-month low of $1,750.60 a troy ounce, bouncing ahead of the close to $1,761. Crude oil prices were mixed, as WTI surged around 1%, settling at $73.40 a barrel, and Brent almost declined for another day, closing with a tiny gain at $74.63.

“Unemployment rate would have to drop fairly substantially, or inflation would have to stay high, to have a 2022 rate hike,” Fed Governor Christopher Waller said on Tuesday’s Bloomberg TV Interview. “If you think you may need to raise rates by end-2022 or early 2023, you need to get tapering done before then.”

Though Fed’s Waller adds to the market’s anxiety over inflation and rate-hike, major pairs still trade at familiar levels, seemingly unaffected by the press time. The reason could be traced from the cautious sentiment ahead of the day’s key data, namely China PMI and US ADP Employment Change.

Technical Analysis

USDJPY (4- Hour Chart)

USDJPY loses its traction around 110.5 level during the American session. Even though the pair still trades within the overall ascending trend, it stages a technical correction. Similar to the previous day, USDJPY remains neutral for its intraday bias. The further rally will resume with its resistance of 111.12 intact. On the downside, the break of 110.51 will turn the pair’s bias back to the downside for 110.14, turning the pair to bearish as it will breach the ascending trend line. From the technical indicator’s view of point, the pair is bearish in the near- term as the MACD is turning down, lending supports to bears; the RSI is neutral, lacking directional strength as of now.

Resistance: 111.12

Support: 110.51, 110.14, 109.84

EURUSD (4- Hour Chart)

EURUSD remains pressured under the 1.1900 level as the greenback gains strength. From the technical aspect, EURUSD is poised to extend its decline, heading toward its support of 1.1837. On the 4- hour chart, the outlook of the pair is bearish as it trades below the 20 simple moving average as well as the 50 SMA, stating that the pair is under pressured. At the same time, the downside pressure is also supported by the negative MACD. If the pair falls below the previous low on the 22nd of June, then it will accelerate its slide within a negative level, favoring a challenge against 1.1837.

Resistance: 1.1919, 1.1985, 1.2052

Support: 1.1837, 1.1704 

GBPUSD (4- Hour Chart)

GBPUSD slips below 1.3850, reaching the weekly low as the greenback gains ground across the board. On the 4- hour chart, GBPUSD remains bearish as it has been unable to recapture the 20 and the 50 SMAs, experiencing the downside momentum. Additionally, the RSI is currently above the 30 readings, thus far from oversold conditions, allowing the pair for more declines; the MACD sustains its negative mode, lending supports to bears. At the time of writing, GBPUSD is expected to extend its fall toward its next support of 1.3787 in the near- term.

Resistance: 1.3896, 1.3963, 1.4017, 1.4072

Support: 1.3787

20210630
Share
Pack Up

The Federal court’s dismissal of the Federal Trade Commissions’ (FTC) antitrust lawsuit…

The Federal court’s dismissal of the Federal Trade Commissions’ (FTC) antitrust lawsuit against Facebook boosted FB by 4.0%

20210629
Share

Market Focus

Wall Street benchmarks refreshed all-time highs with mild gains, except for Dow Jones Industrial Average (DJI), on Monday. Nasdaq surged 1.20%, while DJI closed red (-0.53%). The equities offered a mixed beginning to the key week comprising the US Nonfarm Payrolls (NFP) amid a light calendar. The Federal court’s dismissal of the Federal Trade Commissions’ (FTC) antitrust lawsuit against Facebook boosted FB by 4.0%, also propelled shares of Microsoft, Amazon, Apple, and other tech giants.

The House passed two bills Monday that are expected to form the core of legislation in the chamber designed to boost U.S. research and development in response to China’s challenge to U.S. economic supremacy.

By wide bipartisan margins, the House authorized more funding for the National Science Foundation and additional money for the Department of Energy, following a similar effort in the Senate that saw the passage of a comprehensive $250 billion measure that included more than $52 billion in incentives and grants for domestic semiconductor manufacturing.

While the Senate pulled separate pieces of legislation into a single bill intended to bolster U.S. competitiveness with China, the House is taking a more piecemeal approach. Some lawmakers and industry groups are pressing for the House to include the incentives for chipmakers in whatever package eventually emerges.

“As the legislation advances, we urge Congress to include $52 billion to fund the critical semiconductor research, design, and manufacturing initiatives” included in previous congressional legislation that was never funded, the Semiconductor Industry Association said in a statement.

Main Pairs Movement

Major pairs remained restrained to narrow price ranges. The dollar managed to post a modest intraday gain, helped by optimistic market sentiments.

The euro pair fell to 1.1902, its lowest in 5 days, but finished the day in the 1.1920 area. ECB’s Robert Holzmann said there is no room to increase rates given weak inflation, adding that the PEPP will end when the coronavirus emergency is over, something that won’t happen anytime soon. The facilities program will be revised in September.

Cable failed to recover the 1.3900 mark and trades around 1.3875. After Matt Hancock resigned over the weekend, Sajid Javid is the new UK’s health minister. Javid affirmed that coronavirus-related restrictions would be lifted on July 19, as the government sees “no reason to go beyond” that date. Meanwhile, the UK reported 22,868 new coronavirus cases, the largest one-day increase in five months, amid the spread of the Delta variant.

Antipodean currencies lost some ground against their American rival. Aussie ended the day at 0.7565, and Kiwi at 0.7040. The loonie pair trades at 1.2335, slightly higher than the previous day. Gold continued consolidating around $1,780, but crude oil prices edged lower. WTI settled at $72.75 a barrel, and Brent at $74.58. US 10-year Treasury yields advanced during European trading hours, but retreated ahead of Wall Street’s opening, to end the day below 1.500.

Technical Analysis

USDJPY (4- Hour Chart)

Despite today’s retreat, USDJPY remains its bullish momentum as it keeps trading within the ascending channel and trading above a bullish 20 simple moving average in a bigger outlook. Nonetheless, USDJPY seems to lose its direction on the 4- hour chart as the pair is unable to sustain gains beyond its immediate resistance of 111.12; at the same time, both technical indicators, the MACD and the RSI lose their directional strength around the midlines. On the downside, if the pair loses traction below the support of 110.51, then its intraday bias will become bearish in the near- term; on the other hand, if the pair regains its bulls above 111.12, then it will continue to be bullish and extend further north.

Resistance: 111.12

Support: 110.51, 109.14, 109.84

EURUSD (4- Hour Chart)

EURUSD continues to consolidate in the tight range above the 1.1900 level. On the 4- hour chart, the pair remains neutral at this point since it continues to cling around the 1.1985 level. On the upside, a break of 1.1919 will lead the pair to head to 1.1985 instead; to the downside, if the pair fails to hold above 1.1919, then it might aim for the weekly low at 1.1837. However, similar to GBPUSD, the pair seems to be in a neutral position as the MACD and the RSI are both in a neutral status. As a result, the focus will shift to Tuesday’s mid-tier US economic data releases.

Resistance: 1.1985, 1.2052

Support: 1.1919, 1.1837 

GBPUSD (4- Hour Chart)

GBPUSD retreated below the 1.1900 level as the resurgent demand for the US dollar and the coronavirus delta variant tension in the UK. The outlook of GBPUSD remains under pressure on the 4- hour chart. The pair is currently contesting its minor support level of 1.3896; to the downside, a break of the level will resume the fall to challenge the next level of 1.3787. On the upside, if the support level of 1.3896 is held, then the pair will turn bias back to the upside for the level of 1.3963 instead. At the time of writing, the intraday bias remains neutral first as the MACD is overlapped and the RSI remains neutral.

Resistance: 1.3963, 1.4017, 1.4072

Support: 1.3896, 1.3787

20210629
Share
Pack Up