Research & Education
Mixed PMI Data Spark Discussions About Monetary Policy
The USDJPY currency pair remains on an upward trajectory despite the formation of the recent corrective wave. The mixed PMI data on Monday sparked rumors of a potential interest cut in September as monetary policy poses obstacles to expansion.
Crude Oil Downward Pressure Persists
Crude Oil declined amid worries about lower consumption, geopolitical turbulence, high interest rates, and economic uncertainty. At the same time, US commercial Crude Oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 4.2 million barrels from the previous week.
How Nvidia 10:1 Split Will Affect Investors
Nvidia Corporation, an American technology company based in Santa Clara, California, is a pioneer in accelerated computing and a major manufacturer of high-end graphics processing units (GPUs). For the first quarter that ended April 28, 2024, the company reported revenue of $26.0 billion, which represents an 18% increase from the previous quarter and a remarkable 262% increase from a year ago. Additionally, the company announced a 10-for-1 stock split, scheduled to take effect on July 7, 2024.
EURUSD Bulls Are Back
The EURUSD is on the rise due to recent data indicating a Q1 2024 expansion of the German economy. Additionally, the University of Michigan's consumer sentiment revealed 1-year inflation expectations of 3.3%, down from the preliminary 3.5%. Traders will closely monitor the currency pair this week due to the release of significant economic data that could potentially impact currency valuations.
Loonie Declines Ahead of CPI
The USDCAD is following a bearish trend before the release of important inflation data later today. Despite recent price movements in Gold and Silver, the Canadian dollar remains below the 50-period Exponential Moving Average. Traders will closely monitor the USDCAD this week due to the upcoming release of significant economic data that could impact currency valuations.
Gold Eying All-Time High
Gold has been approaching the all-time high of $2431.45 per troy ounce as the U.S. Bureau of Labor Statistics reported a decrease in the Consumer Price Index (CPI) in April following three consecutive increases. Traders will be keeping a close eye on the market as significant economic data that can potentially affect the economy's health will be released next week.
Crude Oil Under Pressure
Crude Oil prices decreased in response to a Producer Price Index that exceeded expectations, ongoing inflationary pressures, geopolitical uncertainty, a weakening US Dollar Index, and delays in anticipated interest rate reductions by the Federal Reserve. The Consumer Price Index and Retail Sales reports will be released later today, with high expectations. Traders will closely monitor the Crude Oil price this week as significant economic data that could affect its direction will be released.
Bulls Pull EURUSD Higher
Since April 16, the EURUSD has been on an upward trend due to persistent inflation, geopolitical turbulence, and high interest rates. The foreign exchange market's most actively traded currency pair has bounced off the trough price of 1.06015 and is now above the 50-period Exponential Moving Average, indicating the potential of higher exchange rates. However, the upcoming inflation data, the Producer Price Index, for the US economy, set to be released this Tuesday, may impact the future direction of the EURUSD currency pair. Traders will closely monitor the EURUSD this week as significant economic data that could affect currency valuations is due to be released.
SP500 Staging A Rally
Investors eagerly anticipate guidance from the Federal Reserve after Friday's jobs report showed lower-than-expected results. The unemployment rate has risen to 3.9%, while average hourly earnings increased by 0.2%, and only 175K jobs were added. Despite this, traders are expecting a rate cut in September this year. The US Dollar is bouncing off the 50-period Exponential Moving Average while the SP500 is rallying above the key support level of 5122.60
Traders will be keeping a close eye on significant economic data that could affect the economy's health, due to be released.
Decisive Week For GBPUSD
The GBPUSD has been in an upward corrective phase after bouncing off the year's lows. A decisive violation of the key resistance level, 1.25410, will allow the Cable to reach higher exchange rates. Traders are expected to closely monitor a currency pair in light of the forthcoming release of significant economic data that could potentially impact currency valuations.