Financial News

Archive for Financial News – Page 247

Analysts expect growth in the technology sector next year

The US indices traded yesterday without a single trend. By Tuesday’s stock market close, the Dow Jones Index (US30) increased by 0.11%, while the S&P 500 Index (US500) decreased by 0.40%. The NASDAQ Technology Index (US100) fell by 1.38%.

A Wedbush Securities research report indicated that the decline in tech stocks, including Apple, Amazon, and Microsoft, should turn into a sharp rebound next year as companies think about protecting their profitability and the US Federal Reserve will sooner or later begin to wind down its rate hike campaign. The undeniable fact remains that US inflation is too high. And if the US economy does enter a recession with a Consumer Price Index over 5%, the Fed would be in a quandary because they have little room to stimulate the economy. This would be a scenario that the Federal Reserve would try to avoid, which also helps explain why the Fed is moving forward so aggressively.

Joseph Trevisani, the senior analyst at FXStreet.com, said historical patterns suggest that investors next month are likely to benefit from the recent gains in the euro and yen, which could support the dollar in the short term.

Equity markets in Europe were mostly up yesterday. Germany’s DAX (DE30) gained 0.39% yesterday, France’s CAC 40 (FR40) added 0.70%, Spain’s IBEX 35 index (ES35) closed around opening levels, and Britain’s FTSE 100 (UK100) not trading due to the bank holiday.

European Central Bank President Luis de Guindos believes that the Eurozone is in a very difficult economic situation. Inflation remains high and economic growth in Europe remains low, so the ECB finds itself in a difficult position when it has to raise rates amid the recession, as is happening in the UK at the moment. The main question analysts are asking is whether the ECB can stay hawkish, with inflation above 10%, without hurting the European economy too much. The same can be said for the Bank of England, and that makes the prospect of a weaker euro and sterling an attractive scenario for next year.

Oil hit a 3-week-high amid loosening COVID-19 restrictions in China, with US production levels down due to the winter storm. About 450,000-500,000 barrels a day of oil were cut over the Christmas weekend in the United States. The weather in the US is predicted to improve this week, which could lead to a slight decline in oil prices.

Russian President Vladimir Putin on Tuesday signed a decree banning the supply of oil and petroleum products to countries participating in the price cap for five months from February 1.

Part of the Asian market did not trade yesterday. Japan’s Nikkei 225 (JP225) gained 0.16%, China’s FTSE China A50 (CHA50) added 0.76%, India’s NIFTY 50 (IND50) increased by 0.65%, Hong Kong’s Hang Seng (HK50) and S&P/ASX 200 (AU200) were not trading due to the bank holiday.

China said it would abolish the COVID-19 quarantine rule for incoming travelers, an important step toward opening its borders even as the number of COVID-19 cases has surged. China will stop requiring incoming travelers to undergo quarantine as of January 8.

Bank of Japan (BOJ) policymakers discussed the growing prospect that higher wages could finally eliminate the risk of a return to deflation. While markets are growing expectations that Japan’s Central Bank is likely to change its policies, investors’ attention is likely to focus on who will lead the BOJ when Governor Haruhiko Kuroda steps down in April. Analysts are confident that a policy review will follow the appointment of a new governor in the second quarter of 2023.

S&P 500 (F) (US500) 3,829.25 −15.57 (−0.40%)

Dow Jones (US30) 33,241.56 +37.63 (+0.11%)

DAX (DE40) 13,995.10 +54.17 (+0.39%)

FTSE 100 (UK100) 7,473.01 0 (0%)

USD Index 104.19 -0.13 (-0.12%)

Important events for today:

– Japan Industrial Production (m/m) at 01:50 (GMT+2);

– US Pending Home Sales (m/m) at 17:00 (GMT+2).

By JustMarkets

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Financial News Stock Market News

28 Dec

Tech stocks hit as questions abound heading into 2023

By ForexTime

Markets are very much in holiday mode with very thin volumes and light liquidity.

This means we see choppy price action with swings between gains and losses in very quick time. Big trading desks at banks and funds are manned with skeletal staff so position sizing is minimal and new bets are not being taken until the new year.

The well-known Santa Rally in US stocks may struggle this year with the broader S&P 500 index closing lower by 0.4% after clawing back some early losses.

What does the “Santa Rally” typically look like?

The fabled festive move higher in stocks implies gains over the last five trading days of the year and the first two of the new year.
Returns over that period average 1.3% compared with 0.2% for any rolling seven-day trading period.

Tech’s tumble

Growth stocks were hurt yesterday by various factors including higher Treasury yields.

The tech-laden Nasdaq finished 1.4% lower with some individual megacap growth stocks especially hit by selling.

Apple finished 1.4% lower as worries still linger about covid-19 and its China production facilities. Earlier in the session, the tech giant hit their lowest point since June 2021. The June low from this year at $129.04 is strong support for the bulls.
Meanwhile, Tesla tanked again, plunging 11.4% and bringing the total of this month’s losses to nearly 44%. The worst month in at least 10 years has been brought about by the distraction for CEO Elon Musk running his new company, Twitter. A potential sales slowdown at the EV-maker has also not helped, with Reuters reporting that a reduced production schedule in China would be extended into January.
Some of the former darlings of the market have suffered hugely with Facebook parent Meta slumping 65% and once-all-conquering Amazon falling around 50%.

Investors are keen to see the 2022 exit door with the Nasdaq Composite tumbling close to 34% so far this year.

Key for the new year will be inflation and the Fed’s policy tightening path with questions around a recession or soft landing.

Research shows that a bear market has never bottomed before the start of a recession.

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Financial News Stock Market News

27 Dec

RE Investment Co. Buys Two Housing Properties

Source: David Chrystal (12/22/22)

The accretive acquisition adds scale to the company’s asset portfolio, from which it benefits, noted an Echelon Capital Markets report.

NexLiving Communities Inc. (NXLV:TSX.V) acquired two properties in Saint John, New Brunswick, Canada, for US$34.3 million (US$34.3M), reported Echelon Capital Markets analyst David Chrystal in a Dec. 16 research note.

“The acquisition is immediately accretive,” Chrystal wrote, in that it uses the company’s excess cash, the related mortgage has a below-market interest rate, and the increased scale lowers NexLiving’s general and administrative expense:net operating income ratio.

Expanding Its Asset Portfolio

Chrystal described the new properties comprising 142 suites. One, at 50 Calabria St., encompasses a newly built, 82-suite luxury building with lots of amenities, including pickleball and basketball courts and fitness and community centers, and the adjacent land is approved for 85 suites. The second property, at 5 Woodhollow Park, features 67 suites built about 12 years ago. The blended cap rate, including the land, is 4.75%.

“The purchase was financed in part with US$25.7M of mortgage debt at an average interest rate of 3.06%, with a weighted average remaining term of 3.5 years,” Chrystal relayed.

The company used most of its US$9.8M in cash and cash equivalents to cover the $8.6M cash portion of the total consideration for the two New Brunswick properties, NexLiving. It will generate incremental cash from nearly US$25M of mortgage debt maturing in early January and April 2023, but “any significant further acquisition will require incremental equity,” wrote Chrystal.

Looking forward, he added, “We believe NexLiving’s existing portfolio will continue to deliver solid operational results. Though excess cash is a drag on our near-term financial forecast, once liquidity is deployed, we see significant per-share cash flow growth.”

Continued Scaling Up

The analyst pointed out that the scale realized from the most recent purchase, taking year-to-date acquisitions to about US$69M, is benefitting the multifamily property owner. Now, general and administrative (G&A) expense represents about 20–25% of run-rate net operating income, noted the analyst. The Mountain Road acquisition would further expand the Canadian company’s asset portfolio to about 1,200 units valued at more than US$240M and decrease G&A to about 15–20%.

“Should NexLiving continue to execute on its considerable pipeline of acquisition opportunities, we expect that the G&A ratio will dip further,” noted Chrystal.

Echelon has a Buy rating and a CA$0.22 per share target price on NexLiving Communities, currently trading at about CA$0.14 per share.

Disclosures:
1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

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3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

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Important Disclaimers for Echelon Wealth Partners Inc., NexLiving Communities Inc., December 16, 2022

Echelon Wealth Partners Inc. is a member of IIROC and CIPF. The documents on this website have been prepared for the viewer only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. Echelon Wealth Partners Inc. cannot accept any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may increase or decrease in value and you may lose money. Data from various sources were used in the preparation of these documents; the information is believed but in no way warranted to be reliable, accurate and appropriate. Echelon Wealth Partners Inc. employees may buy and sell shares of the companies that are recommended for their own accounts and for the accounts of other clients.

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

U.S. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Echelon Wealth Partners Inc. is not registered as a broker-dealer in the United States and is not be subject to U.S. rules.

ANALYST CERTIFICATION

I, David Chrystal, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.

During the last 12 months, Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer.

During the last 12 months, Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer.

Financial News Real Estate

27 Dec

The Analytical Overview of the Main Currency Pairs on 2022.12.27

By JustMarkets

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.0592
Prev Close: 1.0615
% chg. over the last day: +0.22 %

This is the last trading week of the year. With many investors closing their books for the year and many traders and managers going on vacation, liquidity will be less than usual. This means the markets may move sharply without any news. The dollar fell against most currencies in trading Friday as recent data signaled that the US Personal Consumption Index (PCE) is slowing, reinforcing expectations for a smaller interest rate hike by the Federal Reserve and improving investors’ appetite for risk. The Fed is expected to raise interest rates by only 25 basis points at its next meeting.

Trading recommendations

Support levels: 1.0549, 1.0483, 1.0361, 1.0332, 1.0284, 1.0193
Resistance levels: 1.0667, 1.0695

The trend on the EUR/USD currency pair on the hourly time frame is bullish. The price is forming a price corridor. The price is forming a wide price corridor. The MACD indicator has become positive, and buyers are again dominating inside the day. Under such market conditions, buy trades are best considered from support levels on intraday time frames, but with additional confirmation. Sell deals can be considered from the resistance level of 1.0667, but better with a confirmation in the form of a reverse initiative or a false breakout.

Alternative scenario: if the price breaks down through the support level of 1.0549 and fixes below it, the downtrend will likely resume.

There is no news feed for today.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.2025
Prev Close: 1.2046
% chg. over the last day: +0.17 %

A turbulent year for the British pound is coming to an end, and there are a few signs that 2023 will be optimistic. Signs of a painful economic downturn in the UK continue to accumulate, making analysts doubt whether the pound can extend or even sustain its recent rebound against the dollar. The options market is also showing skepticism, with traders still bearish on the long-term outlook. Yield spreads between two- and 10-year swaps tied to the overnight rate, an indicator of recession risks, also point to a longer recession in the UK than in other major economies. Analysts at JPMorgan Chase & Co. predict that the pound will return to $1.14 by the end of the first quarter of 2023.

Trading recommendations

Support levels: 1.2044, 1.1979, 1.1684, 1.1476, 1.1418
Resistance levels: 1.2093, 1.2218, 1.2308, 1.2431, 1.2519

From the technical point of view, the trend on the GBP/USD currency pair on the hourly time frame has changed to bearish. The MACD indicator has become positive, but the buyers’ pressure is quite weak. On the other hand, the price managed to return above the moving averages. Under such market conditions, it is better to look for buy trades from the support at 1.2044, but with confirmation on the intraday time frames. Sell trades are best sought from the resistance level of 1.2093, but also better with confirmation.

Alternative scenario: if the price breaks out through the 1.2308 resistance level and fixes above it, the uptrend will likely resume.

There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 132.67
Prev Close: 132.77
% chg. over the last day: +0.07 %

The market is still dominated by news of the Bank of Japan’s upward revision to its yield curve control policy, which has given a significant boost to the yen and brought short yen futures positions to their lowest level since August. But Bank of Japan (BOJ) Governor Haruhiko Kuroda said on Monday that the BOJ’s decision last week to widen the permissible range around its yield target was intended to reinforce the effect of its ultra-soft policy, not a first step toward canceling a massive stimulus program, and the bank would aim for sustained and stable price targets accompanied by wage increases while continuing to ease monetary policy under yield curve control. Such a statement may return the USD/JPY currency pair bullish as the interest rate differential is not in favor of the yen.

Trading recommendations

Support levels: 132.27, 131.22
Resistance levels: 133.53, 134.73, 135.88, 137.03, 138.00, 139.09

From the technical point of view, the medium-term trend on the currency pair USD/JPY is bearish. The MACD indicator has become inactive, and a narrow price range in the form of a “wedge” pattern is being formed. During the day, there is a slight buyers’ pressure. Buy trades are best considered on intraday time frames from the support level of 132.27, but only with confirmation. Sell deals can be looked for from the resistance level of 133.53, provided there is a reverse reaction.

Alternative scenario: If the price fixes above 137.00, the uptrend will likely resume.

News feed for 2022.12.27:

– Japan Unemployment Rate (m/m) at 01:30 (GMT+2);
– Japan Retail Sales (m/m) at 01:30 (GMT+2).

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.3651
Prev Close: 1.3594
% chg. over the last day: -0.42 %

Canada’s GDP grew by 0.1% over the last month. On the one hand, the economy is still on a growth trajectory. On the other hand, there are signs of a slowdown in GDP growth over the last 3 months. It is highly likely that Canada’s Central Bank will continue to raise the cost of borrowing (interest rate) but will become more “dovish” so as not to hurt the economy too much. Analysts expect a 0.25% rate hike at the next meeting, after which the bank is likely to pause for a few months. The strengthening of the Canadian dollar in recent days is due to rising oil prices.

Trading recommendations

Support levels: : 1.3521, 1.3438, 1.3386, 1.3360, 1.3281, 1.3212
Resistance levels: : 1.3590, 1.3656, 1.3700, 1.3776, 1.3855

From the point of view of technical analysis, the trend on the USD/CAD currency pair has changed to bullish. But the MACD indicator is in the negative zone, and sellers dominate within the day. Yesterday, the price consolidated below the moving averages, which increases the probability of a change in the trend. Buy trades should be considered from the support at 1.3522, but with a confirmation in the form of a reverse initiative. Sells are best to look for on intraday time frames from the resistance level of 1.3590, but with confirmation in the form of a reverse initiative on the lower time frames.

Alternative scenario: if the price breaks down and consolidates below the support level of 1.3386, the downtrend will likely resume.

There is no news feed for today.

By JustMarkets

Financial News Forex and Currency News

27 Dec

Oil hit a 3-week-high. Tensions between China and Taiwan are rising again

By JustMarkets

In the US, the Personal Consumption Price Index (PCE) rose by 0.1% last month after rising 0.4% in October. The latest data signaled that the PCE index was slowing, reinforcing expectations for a smaller interest rate hike by the Federal Reserve and improving investor appetite for risk. At the close of the stock market on Friday, the Dow Jones Index (US30) increased by 0.53% (+0.86% for the week), and the S&P 500 Index (US500) added 0.59% (-0.23% for the week). The NASDAQ Technology Index (US100) was up 0.21% on Friday (-1.96% for the week).

Holiday sales in the US rose by 7.6% despite inflationary pressures. Consumer spending accounts for nearly 70% of US economic activity, but Americans remain resilient. But problems began to appear, as higher prices for necessities are taking a larger share of total wages. The US durable goods orders fell by 2.1% in November, compared to an expected 0.6% decline.

According to CEBR (Center for Economic and Business Research), higher borrowing costs to fight inflation will cause several economies to contract next year. The report adds that the battle against inflation is not yet won. Analysts expect central banks to stick with their stance in 2023 despite the economic costs. The price of reducing inflation to a more comfortable level is the worst growth prospect for many years. The findings are more pessimistic than the International Monetary Fund’s latest forecast. CEBR takes its baseline data from the IMF’s World Economic Outlook and uses an internal model to forecast growth, inflation, and exchange rates.

Equity markets in Europe traded flat last week. German DAX (DE30) gained 0.19% on Friday (+0.04% for the week), French CAC 40 (FR40) lost 0.20% (+0.52% for the week), Spanish IBEX 35 (ES35) was down 0.01% (+1.84% for the week), British FTSE 100 (UK100) closed on Friday up by 0.05% (+1.92% for the week).

Britain’s turbulent year is coming to an end, and there are a few signs that 2023 will be more optimistic. Signs of a painful economic downturn in the UK continue to pile up. The options market is also showing skepticism, with traders still gloomy about the long-term outlook. Opportunities for growth next year may be limited by divergent central bank policies, as the Bank of England looks increasingly dovish compared to comparable banks. In addition, the UK economy is wobbly, budget deficits are skyrocketing, and double-digit inflation has caused the steepest drop in living standards in recorded history, curbing spending and causing the worst industrial turmoil in decades. The housing market also looks vulnerable. Yield spreads between two- and 10-year swaps tied to the overnight rate, an indicator of recession risks, also point to a longer recession in the UK than in other major economies.

Oil prices rose to a three-week high on Tuesday as China’s latest easing of COVID-19 restrictions raised hopes for fuel demand, and concerns that winter storms in the United States are affecting energy production continue to support prices. Cold freezing temperatures and a heavy snowstorm on Friday left thousands of homes in the United States without power, which not only increased heating and electricity prices but also increased the death toll. Airlines canceled about 2,700 flights in the United States after weather disrupted airports across the country.

Parts of the Asian market did not trade yesterday. Japan’s Nikkei 225 (JP225) gained 0.65%, China’s FTSE China A50 (CHA50) fell by 0.45%, Hong Kong’s Hang Seng (HK50) ended Friday down by 0.44%, India’s NIFTY 50 (IND50) rose by 1.17%, and Australia’s S&P/ASX 200 (AU200) ended the day down by 0.63%.

On Monday, Bank of Japan (BOJ) Governor Haruhiko Kuroda denied the possibility of a short-term exit from the super-soft monetary policy but expressed hope that the growing labor shortage will force firms to raise wages. Kuroda said the Bank of Japan’s decision last week to widen the permissible range around its yield target was aimed at boosting the effect of its super-soft policy, not a first step toward canceling a massive stimulus program. The BoJ will aim for sustained and stable price targets accompanied by wage increases while continuing to ease monetary policy under yield curve control.

China sent 71 warplanes and 7 ships toward Taiwan. Of these, 43 planes also crossed the middle line of the Taiwan Strait, an unofficial buffer zone between the two sides. Taiwan’s official Central News Agency said it was the largest incursion by the Chinese Air Force to date. The White House said the United States was concerned about Chinese military activity near Taiwan, which it called “provocative” and “destabilizing,” adding that it could lead to miscalculation and undermine regional stability. China, for its part, is showing strength in response to the US defense bill, which authorizes increased security cooperation with Taiwan.

China infected 248 million people with COVID-19 in December. And last week, a new daily infection record was set, with 37 million Chinese infected in 24 hours. But despite such a surge in illness, Beijing and Shanghai returned to work on Monday. China raised its estimate of gross domestic product (GDP) growth in 2021 to 8.4% from 8.1% previously, the National Bureau of Statistics said Tuesday.

In the commodities market, futures on gasoline (+11.24%), WTI crude (+6.57%), cocoa (+6.55%), BRENT oil (+6.24%), sugar (+4.53%), coffee (+4.5%), cotton (+3.93%), platinum (+3.09%), wheat (+2.79%) and palladium (+2.69%) showed the biggest gains by the end of the week. Futures on natural gas futures (-24.02%) and orange juice futures (-3.35%) showed the biggest drop.

S&P 500 (F) (US500) 3,844.82 +22.43 (+0.59%)

Dow Jones (US30) 33,203.93 +176.44 (+0.53%)

DAX (DE40) 13,940.93 +26.86 (+0.19%)

FTSE 100 (UK100) 7,473.01 +3.73 (+0.050%)

USD Index 104.33 -0.11 (-0.10%)

Important events for today:

– Japan Unemployment Rate (m/m) at 01:30 (GMT+2);
– Japan Retail Sales (m/m) at 01:30 (GMT+2).

By JustMarkets

Economics & Fundamentals Financial News

27 Dec

Risk appetite picks up as China eases zero-Covid policy

By ForexTime

Stock markets are gaining while the US dollar is softening after China announced it would drop its quarantine requirements for inbound visitors. This further eases three-year border controls aimed at curbing Covid-19.

The authorities also downgraded the seriousness of the virus as it gradually evolves into a common respiratory infection. The latest policy moves from China indicated that economic activity in most major cities may return to normal very quickly which is positive for investors.

Asia-Pacific stocks are in the green while the aussie is the standout currency major. Some markets including in Hong Kong and Australia remain closed on Tuesday.

US stocks futures are showing decent gains with markets in holiday mode with thin volumes and liquidity.

Wall Street had closed higher on Friday with the benchmark S&P500 ending 0.6% higher but Friday’s gains were not enough to stop both the benchmark broader index and the tech-heavy Nasdaq closing lower for a third week in a row.

That is the first such losing streak since September and with four days of trading left this year, sees the S&P500 and Nasdaq losing around 20% and 33% respectively, which is the worst performance since the GFC 2008 crisis.

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Economics & Fundamentals Financial News

23 Dec

Murrey Math Lines 23.12.2022 (Brent, S&P 500)

By RoboForex.com

BRENT

On H4, the quotes are under the 200-day Moving Average, which indicates prevalence of a downtrend. The RSI has exited the overbought area. A test of 2/8 (81.25) should be expected, followed by a breakaway and falling to the support level of 1/8 (78.12). The scenario can be cancelled by an upwards breakaway of the resistance level of 3/8 (84.38), which might lead to a trend reversal and price growth to the resistance level of 4/8 (87.50).

On M15, the lower line of VoltyChannel is broken away, which confirms the downtrend and increases the chances for further price falling.

S&P 500

On H4, the quotes have bounced off 0/8 (3750.0), which is the upper border of the oversold area. The RSI is testing the resistance line. The quotes are expected to rise above 1/8 (3906.2) and then reach the resistance level of 2/8 (4062.5). The scenario can be cancelled by a downward breakaway of the support level of 0/8 (3750.0). In this case, the S&P 500 index will continue falling, and the quotes might reach -1/8 (3593.8).

On M15, an additional signal confirming growth will be a breakaway of the upper border of VoltyChannel.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Financial News Stock Market News

23 Dec

Japanese Candlesticks Analysis 23.12.2022 (XAUUSD, NZDUSD, GBPUSD)

By RoboForex.com

XAUUSD, “Gold vs US Dollar”

At the support level, gold has formed a Harami reversal pattern. Currently, the pair is going by the pattern in an ascending wave. The goal of the growth might be 1815.00. Upon testing the resistance level, the pair will get the chance to break through it and continue the uptrend. However, the quotes may pull back to 1779.85 before further growth.

NZDUSD, “New Zealand Dollar vs US Dollar”

On H4, at the support level, the pair has formed a Hammer reversal pattern. Currently, the pair is going by the signal in an ascending wave. The goal of the growth might be 0.6365. After the resistance level is broken away, the quotes will get a chance to continue the downtrend. However, the price may pull back to 0.6230 before continuing growth.

GBPUSD, “Great Britain Pound vs US Dollar”

On H4, at the support level, the pair has formed a Hammer reversal pattern. Currently, the pair is going by the signal in an ascending wave. The goal if the growth might be the resistance level at 1.2190. However, the price may pull back to 1.1975 before continuing with the uptrend.

Article By RoboForex.com

Financial News Forex and Currency News

23 Dec

The Analytical Overview of the Main Currency Pairs on 2022.12.23

By JustMarkets

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.0604
Prev Close: 1.0597
% chg. over the last day: -0.07 %

Yesterday, US GDP data showed that the US economy increased by 3.2%, higher than the expected 2.9%. This brought back some investor fears about an interest rate hike. The important indicator today will come from the major PCE prices, where a rise in the numbers could put some hawkish pressure back on the markets, causing the dollar index to rise again (EUR/USD to fall). Low liquidity over the holiday period could lead to stronger moves if economic data is significantly different from estimates.

Trading recommendations

Support levels: : 1.0549, 1.0483, 1.0361, 1.0332, 1.0284, 1.0193
Resistance levels: 1.0632, 1.0647, 1.0695

The trend on the EUR/USD currency pair on the hourly time frame is bullish. The price is forming a price corridor. The MACD indicator has become negative, and sellers’ pressure prevails throughout the day. Under such market conditions, buy trades are best considered from the support level of 1.0549 but with additional confirmation. Sell deals can be considered from the resistance level of 1.0632, but it is better with a confirmation in the form of a reverse initiative or false breakout because the level has already been tested.

Alternative scenario: if the price breaks down through the support level of 1.0446 and fixes below it, the downtrend will likely resume.

News feed for 2022.12.23:

– US Core Durable Goods Orders (m/m) at 15:30 (GMT+2);
– US PCE Price index (m/m) at 15:30 (GMT+2);
– US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+2);
– US New Home Sales (m/m) at 17:00 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.2074
Prev Close: 1.2039
% chg. over the last day: -0.29 %

In UK GDP revised downward, the actual value is 0.3%. Most services sub sectors showed a slowdown, but output rose by 0.1% in Q3 2022. With the dollar index rising, GBP/USD quotes have declined, and this trend could continue if PCE data today does not point to a slowdown, which could trigger a drop in the dollar index and a rise in GBP/USD quotes.

Trading recommendations

Support levels: 1.1979, 1.1684, 1.1476, 1.1418
Resistance levels: 1.2091, 1.2218, 1.2308, 1.2431, 1.2519

From the technical point of view, the trend on the GBP/USD currency pair on the hourly time frame is bullish. Yesterday, the price tested the priority change level but failed to consolidate higher. A false breakdown area was formed. The MACD indicator has become inactive, and the volatility on the threshold of the holidays is low. Under such market conditions, it is better to look for buy trades from the support level at 1.2092 but with a confirmation at the intraday time frames. Sell trades are best sought from the resistance level of 1.2218 but also better with confirmation.

Alternative scenario: if the price breaks down from the 1.2092 support level and fixes below it, the downtrend will likely resume.

There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 132.40
Prev Close: 132.36
% chg. over the last day: -0.03 %

The Bank of Japan surprised investors this week with a change in its Yield Curve Control Policy (YCC). This caused a moderate sell-off in Japanese bonds: the yield on Japan’s 10-year government bonds (JGBs) rose 15 basis points. And this is still having an effect on financial markets and the Japanese yen in particular. New inflation data showed that consumer prices (excluding food energy prices) rose from 3.6% to 3.7% on an annualized basis, the highest level since 1981.

Trading recommendations

Support levels: 132.16, 131.22
Resistance levels: 133.53, 134.73, 135.88, 137.03, 138.00, 139.09

From the technical point of view, the medium-term trend on the currency pair USD/JPY is bearish. The MACD indicator has become inactive, and a narrow price range in the form of a “wedge” pattern is being formed. During the day, there is a slight buyers’ pressure. Buy trades are best considered on intraday time frames from the support level of 132.16, but only with confirmation. Sell deals can be looked for from the resistance level of 133.53, provided there is a reverse reaction.

Alternative scenario: If the price fixes above 137.00, the uptrend will likely resume.

News feed for 2022.12.23:

– Japan National Core CPI (m/m) at 01:30 (GMT+2);
– Japan Monetary Policy Meeting Minutes at 01:50 (GMT+2).

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.3606
Prev Close: 1.3645
% chg. over the last day: +0.28 %

The Canadian dollar is a commodity currency and is highly dependent not only on the monetary policy of the Bank of Canada but also on oil prices. The oil prices decreased yesterday while the dollar index went up, which eventually led to the growth of the USD/CAD. China reiterated its focus on boosting economic growth in 2023, which helped revise the impact of demand for crude oil upwards. Increased demand for oil with limited supply is helping oil prices and the Canadian dollar to strengthen.

Trading recommendations

Support levels: 1.3590, 1.3521, 1.3438, 1.3386, 1.3360, 1.3281, 1.3212
Resistance levels: 1.3656, 1.3700, 1.3776, 1.3855

From the point of view of technical analysis, the trend on the USD/CAD currency pair has changed to bullish. The MACD indicator is in the positive zone, but inside the day, there is a weakness of the buyers. Yesterday, the price made a false breakout of the level 1.3656 resistance level, which will now serve as a sell zone. Buy trades should be considered from the support of 1.3590 but with a confirmation in the form of a reversal. Sell deals are best to look for on intraday time frames from the resistance level of 1.3656, but with confirmation in the form of a reverse initiative on the lower time frames.

Alternative scenario: if the price breaks down and consolidates below the support level of 1.3386, the downtrend will likely resume.

News feed for 2022.12.23:

– Canada GDP (m/m) at 15:30 (GMT+2).

By JustMarkets

Financial News Forex and Currency News

23 Dec

Strong economic data may force the Federal Reserve to return to a more hawkish pace

By JustMarkets

In the US, higher-than-expected Gross Domestic Product (GDP) growth of 3.2% in the third quarter – compared to forecasts of 2.9% growth – has returned fears of an interest rate hike to the market. This led to a strengthening of the dollar index and a selloff in the stock market. As the stock market closed, the Dow Jones Index (US30) decreased by 1.05%, and the S&P 500 Index (US500) lost 1.45%. The Technology Index NASDAQ (US100) closed the day at minus 2.18%.

Strong economic data may force the Federal Reserve back to a more hawkish mood. The Fed is especially concerned that a strong labor market gives more oxygen to inflation, which has declined slightly in recent months but is still at its highest level in decades. Therefore, the Fed may have to continue raising interest rates and keep them high for a long time.

Shares of Micron Technology Inc (MU) fell more than 3% after posting quarterly results that didn’t meet expectations. The gloomy macroeconomic backdrop continues to weigh on demand. Deutsche Bank estimates there is a risk of further declines as Micron estimates point to a recovery in demand by mid-2023.

Equity markets in Europe mostly fell yesterday. Germany’s DAX (DE30) decreased by 1.30%, France’s CAC 40 (FR40) lost 0.95%, Spain’s IBEX 35 (ES35) fell by 0.39%, and the British FTSE 100 (UK100) closed Thursday down by 0.37%.

ECB spokesman Luis De Guindos said yesterday that inflation in the Eurozone would be around current levels for the next 2-3 months. This coincides with other comments from ECB policymakers. In addition, de Guindos supported the hawkish stance, saying that 50 bps is now the new standard for suppressing rising inflationary pressures in the Eurozone. The ECB is expected to raise interest rates twice more with a 0.5% step.

China reiterated its focus on boosting economic growth in 2023, which helped revise the impact of crude oil demand upward. China, the world’s largest consumer and importer of crude oil, naturally influences the overall price depending on the state of the economy. Increasing demand for oil with limited supply will drive up oil prices.

Asian markets mostly rose yesterday. Japan’s Nikkei 225 (JP225) gained 0.46%, China’s FTSE China A50 (CHA50) added 0.69%, Hong Kong’s Hang Seng (HK50) increased by 2.71%, India’s NIFTY 50 (IND50) was down by 0.39%, and Australia’s S&P/ASX 200 (AU200) was up 0.53% on the day.

In Japan, inflation data showed that consumer prices (excluding food energy prices) rose from 3.6% to 3.7% year-over-year, the highest since 1981. The Bank of Japan expects inflation to peak around 4% early next year. After the Bank of Japan’s shocking decision this week to let bond yields rise, higher inflation will support speculation that the central bank is nearing a policy reversal. A policy change could come in the spring of 2023 after a new governor takes the helm of the Central Bank.

S&P 500 (F) (US500) 3,822.39 −56.05 (−1.45%)

Dow Jones (US30) 33,027.49 −348.99 (−1.05%)

DAX (DE40) 13,914.07 −183.75 (−1.30%)

FTSE 100 (UK100) 7,469.28 −28.04 (−0.37%)

USD Index 104.43 +0.27 (+0.26%)

Important events for today:

– Japan National Core CPI (m/m) at 01:30 (GMT+2);
– Japan Monetary Policy Meeting Minutes at 01:50 (GMT+2);
– Singapore Consumer Price Index (m/m) at 07:00 (GMT+2);
– US Core Durable Goods Orders (m/m) at 15:30 (GMT+2);
– US PCE Price index (m/m) at 15:30 (GMT+2);
– Canada GDP (m/m) at 15:30 (GMT+2);
– US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+2);
– US New Home Sales (m/m) at 17:00 (GMT+2).

By JustMarkets

Economics & Fundamentals Financial News

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