Date: 7th November 2024.

Today’s Highlights & Analysis: Election, BoE & Fed Rate Decisions!

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*The SNP500 saw its best post-election day in history. It rose 2.50% on Wednesday.
*Qualcomm beat earnings and revenue expectations adding to the bullish sentiment of the SNP500 and NASDAQ!
*The VIX drops to a 2-month low indicating a higher risk appetite but investors are monitoring higher bond yields which have risen to a 4-month high.
*The US Dollar Index retraces on Thursday morning after increasing to an 18-week high on Wednesday. Investors turn their attention to the Federal Reserve Chairman’s speech this evening.

SNP500 – 2024 Is On Track To Be The Best Year Since 2019 For The SNP500!

The SNP500 continues to trade higher on Thursday as buyers maintain control and hold onto their positions. The SNP500 trades 0.14% higher during this morning’s Asian Session in addition to the 2.50% rise on Wednesday. The market is positively reacting to Trump’s Pro US stance and the fact that the Republicans are likely to hold the presidency, house and senate.

Economists have voiced concerns about a Trump presidency such as the Federal debt rising due to significant tax cuts to both business and citizens. Also in addition to this, tariffs and trade wars in China and Europe can significantly increase inflation. However, it is important to note that this is not what the market is currently pricing into the market. Investors will without doubt be scrutinizing comments from the Fed Chairman, Jerome Powell, and hoping for his opinion on the matter. Of course, these comments can create a ripple effect on the stock market.

Analysts expect the Federal Reserve to cut interest rates by 0.25% this evening and a further 0.25% in December. If the Chairman signals a different path, the stock market is likely to witness a higher level of volatility. If the Fed indicates a more hawkish stance there is a higher possibility the SNP500 can witness a large retracement downwards or a full correction back closer to $5800.

A positive indication for the SNP500 continues to be the VIX index which fell a further 0.90% this morning. The remarkably lower VIX index signals a higher risk appetite towards the stock market which increases demand. However, a potential problem is the bond market where yields have risen significantly. Higher bond yields trigger a higher cost of debt which can negatively influence consumer demand. This morning, the US 10-year bond yield fell 24 points which is another positive, but only if the yield continues to fall throughout the day.

Lastly, the quarterly earnings report from Qualcomm adds to the higher sentiment towards the SNP500. Qualcomm’s earnings per share beat expectations by 4.74% and revenue rose almost 900 million compared to the previous quarter. The stock rose more than 10.00% in the last 24-hours supporting the SNP500. Qualcomm’s stocks hold a weight of 0.38% and it is the 45th most influential stock from the SNP500’s 500 components.

Technical analysis continues to point towards a bullish trend due to strong momentum. However, on the 5-minute chart, the price is retracing slightly lower as we edge closer towards the European Cash Open. Therefore, ideally investors may wish for bullish momentum to be regained prior to speculating another buy trade. For example, if the price rises above $5,943.84.

EURUSD – The Euro Continues To Struggle But The USD Retraces On Thursday!

The Euro continues to witness a lack of demand and is again one of the weakest currencies of the day. The Euro index is currently trading 0.20% higher which is only better than the US Dollar Index and Swiss Franc. The best performing currencies of the day are the New Zealand Dollar, Australian Dollar and Canadian Dollar.

Investors are hoping the Federal Reserve chairman will comment on potential tariffs, tax cuts, deportations of migrant workers and a lower oil price. If the Federal Reserve advises the regulator to be more cautious about taking into consideration interest rate cuts in the future due to the above, investors may increase exposure to the US Dollar. However, this can negatively impact the stock market and the value of bonds.

The US Dollar Index is declining on Thursday forming a retracement measuring almost 0.50%. Therefore, investors should note that the volatility is also coming from the USD, not solely the Euro. The decline is understandable considering the strong rise in the US Dollar post election, which saw the currency rise a whopping 2.00%. A key factor for the US Dollar will now be the Chairman’s comments in tonight’s press conference and the impending rate cut in December. Thereafter, investors will focus on the US inflation rate and what it would mean for the monetary policy.

From the European side, the main developments are the political tensions from Europe’s largest economy. Germany’s government has fallen into turmoil after Chancellor Olaf Scholz unexpectedly dismissed his finance minister. Christian Lindner was ousted from the three-party coalition in a high-level government meeting on Wednesday evening, following months of intense internal conflicts that have fueled the administration’s declining popularity. Experts believe Germany will also announce snap elections due to the political turmoil.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

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Click HERE to READ more Market news.

Michalis Efthymiou
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Date: 11th November 2024.

Bitcoin Skyrockets to $81k; Asian Stocks Down; Markets weigh the risk of “Trump-tariffs”.

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Asia & European Sessions:

*Bitcoin surged past $81,000 for the first time (94% higher for 2024), fueled by President-elect Donald Trump’s decisive victory, winning all seven US battleground states, including Arizona. The digital-asset industry, which invested over $100 million in pro-crypto candidates, celebrated the outcome.
*Trump pledged to make the US a hub for digital assets, including plans for a strategic Bitcoin stockpile and appointing crypto-friendly regulators.
*Dogecoin skyrocketed to highest price since 2021 (promoted by Trump supporter Elon Musk).
*Japanese indexes rallied as discussions at the last BoJ meeting focused on a cautious approach to additional rate cuts.
*Asian shares fell following concerns that China’s debt swap program may not be adequate, alongside data indicating ongoing deflationary pressures in the world’s second-largest economy. Investor sentiment is also dampened by declining foreign direct investment especially after Donald Trump’s presidential victory injected fresh uncertainty over tariffs.
*China’s inflation reports were weak, reflecting further deflation in wholesale prices. China’s trade surplus is poised to reach a new record this year. If the gap between exports and imports keeps expanding at its current rate, it could approach $1 trillion, based on Bloomberg’s calculations. These are ominous signs for the economy that continues to struggle.

Financial Markets Performance:

*European stock markets are mostly higher, with DAX and FTSE100 posting gains of 1.0% and 0.6% respectively.
*Bond markets are closed in the US and Canada today and while equity markets are open, trading conditions are likely to be quieter than usual.
*US equity futures are currently higher, led by a 0.4% rise in the NASDAQ.
*The USDIndex climbed back above 105.
*EURUSD drifts to 1.069 and GBPUSD retests once again a break below 1.2900.
The USDJPY rebounds and extends again to 153.60 for the first time since July.
*Oil prices steadied at $70 lows following their largest drop in nearly 2 weeks, pressured by a weak outlook in China. Crude traders are considering global demand prospects for 2025, potential impacts from Donald Trump’s presidential win, and geopolitical tensions between Israel and Iran. A global surplus is expected next year, and influential outlooks, including OPEC’s report on Tuesday, are anticipated.
*Gold remains under pressure, as the US election outcome boosted the US Dollar and prompted a reversal of haven flows. The precious metal is currently trading at $2669 per ounce, slightly above the lows seen in the aftermath of the election and before the Fed cut rates.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Date: 13th November 2024.

Stocks Cautious Amid Upcoming US CPI & Yen Pressures.

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“Trump trade” has boosted the US Dollar and US stocks, but Trump’s policies may have less favorable effects on global assets. Trump’s plan to raise tariffs is expected to negatively impact economies worldwide, especially exporters like China.

Asia & European Sessions:

*Stock markets are turning cautious as markets prepare for Trump’s presidency. Growing concern that tariffs will disrupt global trade and fuel inflation has been denting sentiment.
*Indexes declined and Japan and Hong Kong, European markets are posting modest gains and US futures are in the red, as yields rise.
*Wall Street stumbled as the Trump trade ran out of steam after 5 straight days of gains on the S&P500 and Dow, along with 4 days of gains on the NASDAQ to more record highs.   

Financial Markets Performance:

*The Yen weakened beyond 155 against the US Dollar for the first time since July, raising concerns that Japan might intervene in the currency market to curb its depreciation. A Bloomberg poll of 53 economists last month suggested intervention could be triggered at 150, with a median forecast of 160.
*A spike in Treasury yields is pressuring the Yen, with the two-year yield hitting its highest mark since July, driven by Trump’s economic agenda boosting US rates and the reduced cost of hedging due to the Federal Reserve’s rate cuts.
*The upcoming US data on CPI, PPI, and Retail sales could accelerate the Yen’s decline if the Ministry of Finance doesn’t step in with verbal warnings. Prolonged yen weakness may push the Bank of Japan to consider earlier rate hikes.
*Concerns over sticky high inflation ahead of the CPI report and concerns over potentially inflationary aspects of Trump’s fiscal policies exacerbated selling.

Financial Markets Performance:

*The USDIndex is settling above 106.
*Oil declined -0.09% to $67.98 per barrel with Trump’s “drill baby drill” reverberating.
*Gold lost -0.82% to $2597.26 per ounce as interest rates surged. The rising Dollar also impacted commodities.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.Date: 13th November 2024.

Stocks Cautious Amid Upcoming US CPI & Yen Pressures.

Trading Leveraged Products is risky

“Trump trade” has boosted the US Dollar and US stocks, but Trump’s policies may have less favorable effects on global assets. Trump’s plan to raise tariffs is expected to negatively impact economies worldwide, especially exporters like China.

Asia & European Sessions:

*Stock markets are turning cautious as markets prepare for Trump’s presidency. Growing concern that tariffs will disrupt global trade and fuel inflation has been denting sentiment.
*Indexes declined and Japan and Hong Kong, European markets are posting modest gains and US futures are in the red, as yields rise.
*Wall Street stumbled as the Trump trade ran out of steam after 5 straight days of gains on the S&P500 and Dow, along with 4 days of gains on the NASDAQ to more record highs.   

Financial Markets Performance:

*The Yen weakened beyond 155 against the US Dollar for the first time since July, raising concerns that Japan might intervene in the currency market to curb its depreciation. A Bloomberg poll of 53 economists last month suggested intervention could be triggered at 150, with a median forecast of 160.
*A spike in Treasury yields is pressuring the Yen, with the two-year yield hitting its highest mark since July, driven by Trump’s economic agenda boosting US rates and the reduced cost of hedging due to the Federal Reserve’s rate cuts.
*The upcoming US data on CPI, PPI, and Retail sales could accelerate the Yen’s decline if the Ministry of Finance doesn’t step in with verbal warnings. Prolonged yen weakness may push the Bank of Japan to consider earlier rate hikes.
*Concerns over sticky high inflation ahead of the CPI report and concerns over potentially inflationary aspects of Trump’s fiscal policies exacerbated selling.

Financial Markets Performance:

*The USDIndex is settling above 106.
*Oil declined -0.09% to $67.98 per barrel with Trump’s “drill baby drill” reverberating.
*Gold lost -0.82% to $2597.26 per ounce as interest rates surged. The rising Dollar also impacted commodities.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Date: 18th November 2024.

Monday Market Analysis and the Week Ahead!

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*The NASDAQ inches up ahead of NVIDIA’s upcoming earnings report. NVIDIA will release their earnings report on Wednesday.
*Analysts expect NVIDIA’s Earnings Per Share to rise from $0.68 to $0.74 and Revenue to rise by $3 billion.
*The US Dollar remains strong as investors contemplate whether the Federal Reserve will pause in December. The Fed Chairman advises the US economy remains strong and the employment sector stable.
*The GBP was the best-performing currency in the Asian session, but will this continue as London starts trading?   

NASDAQ – Investors Turn Their Attention To NVIDIA Earnings!

The NASDAQ fell for 5 consecutive days last week due to the US consumer and producer inflation striking fear amongst investors. The US inflation rate rose from 2.4% to 2.6% and the producer inflation from 1.9% to 2.4%. In addition to this the Federal Reserve advises the US economy remains strong and the employment sector stable. As a result, only 65% of investors expect the Federal Reserve to cut interest rates in December, particularly lower than the previous weeks.

Though, certain key events could prompt higher demand and investors to contemplate buying the NASDAQ at the lower price. The higher demand is also in line with what many price theories would suggest. The NASDAQ’s average resistance point from October is at $20,511.29. The price has now dropped below this level and many price theories indicate that a retracement will end around this price. However, analysts would also urge investors to consider what else will drive investors to buy, not solely the price.

For this reason, investors will be closely watching NVIDIA’s Quarterly Earnings Report on Wednesday. NVIDIA is the NASDAQ’s most influential stock holding a weight of 8.69% and is already up 0.52% in pre-hours trading. The market expects NVIDIA’s Earnings Per Share to rise from $0.68 to $0.74 and Revenue to rise by $3 billion. If the company beats these expectations, the stock is likely to rise and can support the NASDAQ. On Monday, investors will keep this in mind while trading.

Besides the upcoming earnings report investors are also monitoring the volatility in the Bond Market and the VIX Index. Bond yields continue to rise which is a concern for the stock market. The US 10 Year Treasury is up 14 points, however, the VIX index is 1.45% lower which is known to be positive. Buyers will be hoping for the VIX to remain low and for bond yields to drop. Whereas, sellers will be hoping for bond yields to rise further and the VIX to correct back upwards.

GBPUSD – Will The Cable Retrace After A Seven-Day Decline?

The GBPUSD has declined for seven consecutive days which is a price movement which has not happened before in 2024. In addition to this, the exchange rate has fallen back to the support level from June and August 2024. Therefore investors are considering whether the GBPUSD will retrace slightly higher on Monday. A retracement in the short term could potentially take the price to the resistance level at 1.26810 or 1.27190.

A retracement is possible according to analysts as the GBP is the best performing currency of the day and due to the low price. In addition to this, the US Dollar is not expected to be influenced by any economic releases until Friday, when the US as well as the UK will release their Purchasing Managers’ Index, whereas the UK will release the Monetary Policy Report tomorrow morning and their Retail Sales within the week.

In terms of potential areas to consider speculating a buy, some traders may take into consideration the breakout level at 1.26270 or once 65% of the previous swing has been made. This would be at the 1.26314 price.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Date: 20th November 2024.

Market Rebounds as Putin Signals Readiness for Peace Talks; Focus Shifts to NVIDIA!

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*US Stocks drop to a 2-week low after Ukraine fired US-made missiles into Russia, but rebound in the US session.
*Putin updates nuclear doctrine, allowing Russia to strike Ukraine if it uses weapons from nuclear-armed nations.
*Walmart again beat earnings expectations pushing the stock 3.00% higher. Earnings Per Share beat expectations by 8.00%.
*The Japanese Yen loses momentum and corrects back to previous lows. The US Dollar maintains strong bullish momentum.
*UK Inflation Rate rises from 1.7% to 2.3% supporting the GBP despite budget concerns continuing.
*NVIDIA is set to release their quarterly earnings report after market close. NVIDIA stock has risen more than 5.00% indicating the market expects a beat.

NASDAQ – All Eyes On NVIDIA Earnings Report!

The NASDAQ ended Tuesday 0.71% higher despite coming under significant pressure during the Asian and European session. The NASDAQ fell 1.20% during the day’s first two sessions due to geopolitical tensions triggering a much lower risk appetite. This is due to the US as well as other countries agreeing to allow Ukraine to strike Russia with foreign made weapons. Ukraine quickly took advantage of this by firing ATACMS into Russia. Russia responded by changing their nuclear weapon use doctrine.

Here we can see why the global stock market fell rapidly. However, why did the market recover during the US session?

During the US session, the risk appetite and confidence of the market improved as the White House confirmed nothing changes with Russia changing their Nuclear Weapons Doctrine. In addition to this, President Putin also said that he would be willing to start peace talks with President Elect Trump. Lastly, the market also took the opportunity to purchase the lower price since NVIDIA’s earnings report is imminent and Walmart already beat their earnings expectations.

Walmart is not a component of the NASDAQ, but has improved the sentiment towards the US stock market. NVIDIA, which is on the NASDAQ, is set to release their quarterly earnings report after market close. NVIDIA stock rose 4.89% yesterday and a further 0.47% this morning indicating the market expects a beat. Analysts expect the company’s Earnings Per Share to rise from $0.68 to $0.75 and revenue from $30.04 billion to $33.14 billion. As no US economic data is set to be made public throughout the day, investors are solely concentrating on geopolitical tensions and earnings.

The price of the NASDAQ rose above the 75-bar exponential moving average on the 2-hour chart for the first time since 14th. Traders will be monitoring whether the index will be able to maintain momentum above this level and if the price may also rise above the 100-bar SMA. Traders will be waiting for the NASDAQ to regain bullish momentum and if so will act accordingly. Buy signals are likely to rise if the price increases above $20,764.30 and intensifies above $20,777.93.

GBPUSD – UK Inflation Rises Above Expectations!

The price of the GBPUSD increased in value taking the exchange rate to a 1-week high, but concerns remain according to analysts. The exchange rate is trading 0.30% higher after the UK made public their latest inflation rate. The UK inflation rate rose from 1.7% to 2.3% which is higher than previous expectations and considerably higher than the previous month.

The GBP is currently the best performing currency with the Pound index trading 0.21% higher. However, the second best performing is the US Dollar Index which is trading 0.14% higher. Therefore, investors need to be cautious that a retrace or correction is still possible while the US Dollar Index remains high.

Currently the Pound is coming under pressure from the Autumn Budget and from farming strikes which are continuing. However, comments from the Bank of England could support the currency. The BoE warns that planned National Insurance hikes in the Labour budget may drive up prices, slow wage growth, and reduce hiring. Significant inflation could force prolonged tight monetary policy.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Michalis Efthymiou
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Date: 22nd November 2024.

BTC flirts with $100K, Stocks higher, Eurozone PMI signals recession risk.

Asia & European Sessions:

*Geopolitical risks are back in the spotlight on fears of escalation in the Ukraine-Russia after Russia reportedly used a new ICBM to retaliate against Ukraine’s use of US and UK made missiles to attack inside Russia.
*The markets continue to assess the election results as President-elect Trump fills in his cabinet choices, with the key Treasury Secretary spot still open.
*The Fed’s rate path continues to be debated with a -25 bp December cut seen as 50-50.
*Earnings season is coming to an end after mixed reports, though AI remains a major driver.
*Profit taking and rebalancing into year-end are adding to gyrations too.
*Wall Street rallied, led by the Dow’s 1.06% broadbased pop. The S&P500 advanced 0.53% and the NASDAQ inched up 0.03%.
*Asian stocks rose after  Nvidia’s rally. Nikkei added 1% to 38,415.32 after the Tokyo inflation data slowed to 2.3% in October from 2.5% in the prior month, reaching its lowest level since January. The rally was also supported by chip-related stocks tracked Nvidia.
*Overnight-indexed swaps indicate that it’s certain the Reserve Bank of New Zealand will cut its policy rate by 50 basis points on Nov. 27, with a 22% chance of a 75 basis points reduction.
*European stocks futures climbed even though German Q3 GDP growth revised down to 0.1% q/q from the 0.2% q/q reported initially.
*Cryptocurrency market has gained approximately $1 trillion since Trump’s victory in the Nov. 5 election. Recent announcement for the SEC boosted cryptos. Chair Gary Gensler will step down on January 20, the day Trump is set to be inaugurated. Gensler has pushed for more protections for crypto investors. MicroStrategy Inc.’s plans to accelerate purchases of the token, and the debut of options on US Bitcoin ETFs also support this rally.
*Trump’s transition team has begun discussions on the possibility of creating a new White House position focused on digital asset policy.

Financial Markets Performance:

*The US Dollar recovered overnight and closed at 107.00.
*Bitcoin currently at 99,300,  flirting with a run toward the 100,000 level.
*The EURUSD drifts below 1.05, the GBPUSD dips to June’s bottom at 1.2570, while USDJPY rebounded to 154.94.
*The AUDNZD spiked to 2-year highs amid speculation the RBNZ will cut the official cash rate by more than 50 bps next week.
*Oil surged 2.12% to $70.46.
*Gold spiked to 2,697 after escalation alerts between Russia and Ukraine. Heightened geopolitical tensions drove investors toward safe-haven assets. Gold has surged by 30% this year. Haven demand balanced out the pressure from a strong USD following mixed US labor data. Silver rose 0.9% to 31.38, while palladium increased by 0.9% to 1,040.85 per ounce. Platinum remained unchanged.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Date: 26th November 2024.

Trump’s tariff threats boosted Dollar; Peso, Loonie, Gold & Oil Lower.

The Trump trade picked up steam as investors cheered his pick for Treasury Secretary, Scott Bessent. Beliefs he will be a steadying voice in the administration’s fiscal measures, while still following President-elect Trump’s tariff and tax commitments, underpinned.

Asia & European Sessions:

*Trump threatened on Monday to impose sweeping new tariffs on China, Canada and Mexico on his first day as US President to crack down on illegal immigration and drugs. He would impose a 25% tax on all products entering the country from Canada and Mexico, and an additional 10% tariff on goods from China as one of his first acts as president of the US.
*Bessent’s 3-3-3 plan aims to cut the deficit to 3% of GDP, boost growth to 3%, and increase oil production to 3 mln barrels.
*Treasury yields dove in a curve flattener, extending their drops through the session, on expectations inflation will decelerate. A strong 2-year auction also supported.
*The Dow led the charge, climbing 0.99% to 44,736, a new record peak as the rally broadens. The S&P500 climbed to 6020, a session peak, but finished with a 0.3% gain to 5987. The NASDAQ closed 0.27% higher.
*Today, stock markets in Europe are posting broad losses, with the DAX down -0.6%, the FTSE 100 0.4%, after a largely weaker close across Asia.
*ECB: Lane suggests ECB must be open-minded on speed of rate cuts. The ECB’s Chief Economist said in a speech on Monday evening that “remaining open-minded about the speed and scale of adjustments is in fact a valuable strategy across various environments, as different situations may necessitate distinct approaches.” This careful, step-by-step strategy enables us to observe the responses of the economy to our decisions and continuously refine our understanding of their impacts.” The comments leave the door open to a 50 bp move in December, but also tie in with our expectation that the central bank will deliver a 25 bp while tweaking the forward guidance and commit to additional moves.

Financial Markets Performance:

*The USDIndex hit a session high of 107.50 and is currently lower at 106.85.
Mexican peso and Canadian dollar slumped as the dollar is being viewed as a haven after the comments of President-elect Donald Trump on tariffs on Canada, Mexico and China. USDCAD spiked to 1.4177 and USDMXN rallied to 20.74.
*Oil and Gold lost ground, in part on cooling geopolitical risks, and on Trump trades. Oil dropped -3.03% to $69.09 per barrel, in part on the Trump trade and on talk of a potential cease fire between Israel and Hezbollah. Similarly, gold fell -3.26% to $2605 per ounce.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Date: 2nd December 2024.

Dollar Strength Ahead of Key Employment Data Pressures Gold!

Trading Leveraged Producys is Risky

*Analysts expect the US Unemployment Rate to rise from 4.1% to 4.2%. The US Dollar Index opens higher on Monday after declining for 5 consecutive days.
*According to experts, there is a 67% chance of a rate cut in December from the Fed. However, the decision depends on the NFP and next week’s inflation rate.
*France’s parliament clash on Prime Minister Michel Barnier’s tweaks to the 2025 budget. Le Pen threatens to support a vote of no confidence. European indices decline.
*Oil prices drop back below $70 per barrel supporting US stocks.

Gold – A Stronger US Dollar Pressures Gold!

The price of Gold sharply fell over 1.00% in the opening hours of the Asian and European session taking the price down to Thursday’s support level. The main reason for the decline is the rise in the price of the US Dollar. The US Dollar Index opened on a 0.30% bullish price gap and rose a further 0.23% thereafter. The price of Gold this week will largely be dependent on the US employment data and its effect on the Federal Fund Rate.

Employment data will be made public throughout the week, marking the final update before the US Federal Reserve’s December meeting. This includes tomorrow’s JOLTS Job Openings, Wednesday’s ADP Employment Change and Friday’s NFP data. Notably, the personal consumption expenditures (PCE) price index rose from 2.1% to 2.3%, with the core index climbing from 2.7% to 2.8%. Strong employment figures could strengthen the case against further monetary policy easing, casting doubt on the likelihood of a 25-basis-point interest rate cut in December.

While most experts currently anticipate this adjustment, they expect regulators to pause early next year to evaluate the potential impacts of trade policy decisions announced by newly elected President Donald Trump’s administration. If the likelihood of a rate cut remains high, the price of Gold is likely to find support. Whereas, strong employment data and a pause will pressure Gold and support the Dollar further.

Due to today’s decline, the price of gold shows a bearish bias as the price falls below the trend-line and the 100-bar Moving Average. However, the current momentum will determine whether the price obtains a short-term signal indicating a correction or decline. If the price increases above $2632.62 a short-term signal indicating a correction is likely to arise. If the price falls below $2,626.45, the signal will indicate the continuation of downward momentum.

EURUSD – The Euro Falls As European Politics Trigger Lower Confidence.

The worst performing currency of the day is the Euro which is declining against all currencies. The Euro index currently trades 0.58% lower mainly due to political tension in France and Germany.

Finance Minister Antoine Armand dismissed Marine Le Pen’s push for artificial budget deadlines, even as the far-right leader signaled readiness to topple the government this week. Le Pen’s party has threatened a no-confidence vote against Prime Minister Barnier. This is due to the PM adjusting the 2025 budget to include inflation-linked pension indexing and other demands.

S&P Global’s Manufacturing PMIs are expected to stay the same in Germany (43.2 points) and the eurozone (45.2 points). Meanwhile, markets are awaiting October’s data on the Eurozone unemployment rate, currently at 6.3%, along with a speech by ECB President Christine Lagarde, who may provide updates on the central bank’s monetary policy plans.

While experts believe the ECB is unlikely to make a sharp policy easing, some board members, including Bank of France Governor François Villeroy de Galhau, have suggested that a 50-basis-point rate cut in December remains a possibility.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Michalis Efthymiou
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Date: 4th December 2024.

Australian Dollar Dives To Significant Support Level!

Trading Leveraged Producys is Risky

*US JOLTS Job Openings beat expectations but remains below 8 million job vacancies.
*Australia’s Gross Domestic Product increases to a 5-month high but does not reach previous expectations.
*The Australian Dollar significantly declines during this morning’s trading session due to the GDP miss.
*US stocks shot up after the release of the latest US Job Vacancies and the NASDAQ rose to an all-time high.
*The Euro and the US Dollar continue to move sideways as investors await further US employment data and clarity of the French political crisis.

NASDAQ Rises To An All-Time High, But Risks Remain!

The NASDAQ rose to a new all-time high at 5:40 GMT, during this morning’s Asian session. The bullish price movement seems to be due to  the JOLTS Job Openings which painted a picture of resilience but was not high enough to indicate a pause in December from the Federal Reserve. According to economists, the Fed most likely would have drawn the line at 8 million vacancies. However, traders should note that the spotlight remains on NFP, the US Unemployment Rate and the inflation rate. Yesterday’s JOLTS Job Vacancies rose to 7.74 million.

Investors should also note that the above release is the second positive economic data for the US after Monday’s ISM Manufacturing PMI which rose to a 5-month high (48.4). Another positive factor is the NASDAQ remaining above the Volume-weighted average price, as the VIX index falls again and the High Low Index also continues to increase.

However, investors should note that risks still remain. Positive economic and employment data could pressure the Federal Reserve to keep the Fund Rate unchanged. This will particularly become possible if we do not see a sizable decline in inflation. Bond yields did fall towards the end of November which signals a cut from the Fed, but the 10-year bond yields are slowly rising this week.

The NASDAQ has been increasing in value for five consecutive days, and the index is trading at an all-time high. If the index fully forms a bullish candlestick throughout today’s session, investors will become vigilant of a selloff and retracement. Nonetheless, technical analysis and indicators continue to provide buy signals due to the bullish momentum. Currently, the RSI indicates the index is overbought on the 2-hour chart on a period of 18.

AUDUSD – Poor Economic Data Drives The Australian Dollar To 4-Month Low!

The AUDUSD exchange rate is trading at a 4-month low after the positive JOLTS Job data, but when analyzing each currency individually, it is clear the main driver is the Australian Dollar. The worst performing currency of the day is the Australian Dollar while the US Dollar is unchanged. What’s driving the AUD lower?

The decline is largely due to the Gross Domestic Product which rose from 0.2% to 0.3%, but fell short of the 0.5% which traders were expecting. Last Thursday, Australia’s Senate approved amendments to the Reserve Bank Act, creating a Monetary Policy Committee and a separate Board for operational management. Treasurer Jim Chalmers said the reforms would enhance the RBA’s independence, clarify its mandate, modernize its structure, and align it with regulators like the Bank of England.

The price of the US Dollar will depend on the upcoming employment data and on the Fed’s monetary policy move. The Federal Reserve has already done the unexpected on one occasion this year, if they decide to pause in December, the US Dollar is likely to significantly rise.

The AUDUSD has fallen 9 of the past 10 weeks and the price is now considerably close to a major support level at 0.63470.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Michalis Efthymiou
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Date: 6th December 2024.

How Will NFP Impact The Trading Markets?

Trading Leveraged Producys is Risky

*The Euro increased in value against most currencies on Thursday, but investors remained cautious over the ECB President’s comments.
*According to economists, the ECB is almost certain to cut interest rates next week. President Lagarde advises the Eurozone is likely to witness lower economic growth than previously expected.
*Analysts changed expectations for the US Unemployment Rate to rise to 4.2%. Most experts now expect the US rate of unemployment to remain unchanged.
*Poor US employment data can increase the potential for a December rate cut and further fuel the bullish trend in the stock market.

EURUSD – Will The Fed Cut Interest Rates?

The EURUSD rose in value on Thursday ignoring resistance levels but now moves closer to a stronger resistance point. This key level can be seen at 1.05969, but in order for the EURUSD to find bearish momentum at this level investors will be hoping for poor employment data.

Currently, the exchange rate is not obtaining any clear indications pointing towards bearish price Economists expect the NFP Employment Change to read 215,000 and for the Unemployment Rate to remain at 4.1%. Analysts also continue to expect the growth in salaries to continue. If these three releases indicate a resilient and strong employment sector, the chances of a Federal Reserve rate cut fade. However, if the data is poorer, the US Dollar can potentially decline as a rate cut this month becomes more certain.

Regarding the Euro, market participants are turning their attention to macroeconomic data from the Eurozone. Retail sales declined by 0.5% MoM, slightly worse than the expected ˗0.4%. Additionally, Germany’s industrial orders for October decreased by 1.5%, following a 4.2% rise in the previous month. This indicates weak domestic demand in both the German and broader European economies, potentially prompting the European Central Bank (ECB) to consider further interest rate cuts.

A recent Reuters poll of leading economists suggests the ECB may lower borrowing costs by ˗25 basis points next week and by at least ˗100 basis points over the next year. Supporting this outlook, ECB President Christine Lagarde stated yesterday that economic growth in the Eurozone could be weaker than expected in the coming months, with risks of further deterioration likely to dominate in the medium term.

The US Dollar Index is the best performing currency index so far today, but is not seeing significant gains. The Euro Index remains unchanged. The worst performing currency of the day is the Australian Dollar and the Japanese Yen.

NASDAQ – How Will NFP Affect The NASDAQ?

The NASDAQ retraced after gaining in value for 5 consecutive days and rising to an all-time high. So far in 2024, the NASDAQ has almost risen 30% but the short to medium term price action will depend on the upcoming employment data and next week’s consumer and producer inflation.

Employment data for last week was released yesterday, showing that initial jobless claims rose by 224,000, surpassing both the forecast of 215,000 and the previous figure of 215,000. However, the total number of individuals receiving state assistance decreased from 1.896 million to 1.871 million, defying expectations of an increase to 1.910 million.

Commenting on the situation, Federal Reserve Chair Jerome Powell noted that the US economy is performing better than anticipated, with declining risks of labor market deterioration. In this context, Powell suggested that the Federal Reserve could adopt a more cautious stance on monetary policy, aiming to achieve a neutral position for interest rates.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Michalis Efthymiou
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Date: 17th December 2024.

GBPUSD: Strong UK Data Fuels Expectations of BoE Hawkishness!

Trading Leveraged Producys is Risky

*UK salaries increased to 5.2%, up from 4.3% the previous month and significantly higher than analysts’ expectations.
*Analysts expect the Bank of England to keep interest rates unchanged on Thursday. Higher UK salaries to prompt a hawkish BoE.
*The Great British Pound Index trades 0.13% higher this morning as the UK only adds 300 unemployment claims.
*The Australian Dollar loses gains from Monday’s trading session. The AUD and NZD are the day’s worst performing currencies so far.
*Traders continue to expect 0.25% by the Federal Reserve. The USD remains pressured while stocks rise.

GBPUSD - Strong Employment Data for the UK Boosts GBP Demand!

The GBPUSD is trading 0.21% higher as we edge closer to the London open. Traders should note that the price of the GBPUSD rose almost 0.30% as the UK’s employment data was made public. Prior to this the exchange rate was trading 0.10% lower. The upward price movement this week is primarily related to the upcoming Bank of England interest rate decision where investors believe the BoE will vote for a pause.

After the release of the UK’s employment data for November the chances of a pause have increased. The UK’s Unemployment Claimant Count Change saw only 300 more unemployed individuals making claims. This is the lowest Claimant Count Change since June 2023. In addition to this, the UK’s Quarterly Average Salary Index rose to 5.2%, 0.6% higher than the previous month. The announcement will further prompt the BoE to take a more hawkish stance and less adjustments in the upcoming quarter.

The hawkishness of the Bank of England is one of the reasons the GBP has performed well in the past 24 hours. Although, the expected upcoming Federal Reserve 0.25% cut is also supporting the GBPUSD. However, if the Federal Reserve decides to make a shock decision and not cut interest rates, the GBPUSD could quickly decline. Most analysts believe the Federal Reserve will adjust 0.25%, but most have not completely withdrawn the possibility of a pause after the US increase rose to 2.7%.

GBPUSD - Technical Analysis and Upcoming News

On a 2-hour timeframe, the GBPUSD is trading with a slight bullish bias as the price is trading above the 75-Bar EMA and the RSI’s neutral level but below the 100-Bar SMA. In order for the GBPUSD to witness strong bullish signals ideally today’s US Retail Sales data will read lower than expected and the Fed will announce its 0.25% cut. If the Federal Reserve does not cut interest rates, the GBPUSD could correct back down to 1.26075. Otherwise, the Cable could rise to the previous price rate which saw an average price at 1.27464.

The significant economic release for the next 24-hours will be the US Retail Sales this afternoon. Analysts expect Retail Sales for the US to rise 0.6% MoM and the Core Retail Sales 0.4%. Tomorrow morning traders' attention will turn to the UK’s inflation rate. Analysts expect the UK inflation rate to increase from 2.3% to 2.6%, the highest since April 2024 but not significantly higher than the BoE’s target of 2.00%.

Gold and the US Dollar

Gold's price has also significantly declined over the past 2 days which may give the interpretation of a hawkish Fed. Individuals trading the GBPUSD are also closely monitoring the price of Gold and the US Dollar Index for clarity and confirmation of their signals.

However, the market is undergoing a local correction: according to the US Commodity Futures Trading Commission (CFTC) report, net speculative positions in gold rose significantly last week, reaching 275.6 thousand compared to 259.7 thousand the previous week. Investors are actively increasing long positions, anticipating further price growth. Therefore, order flow analysts in Gold are also potentially indicating a 0.25% cut in interest rates.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Michalis Efthymiou
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Date: 19th December 2024.

Federal Reserve Sparks NASDAQ’s Sharpest Selloff of 2024!

Trading Leveraged Producys is Risky

The NASDAQ fell more than 3.60% after the Federal Reserve cut interest rates, but gave hawkish comments. The stock market saw its largest decline witnessed in 2024 so far, as investors opted to cash in profits and not risk in the short-medium term. What did Chairman Powell reveal, and how does it impact the NASDAQ?

The NASDAQ Falls To December Lows After Fed Guidance!

The NASDAQ and US stock market in general saw a considerable decline after the press conference of the Federal Reserve. The USA100 ended the day 3.60% lower and saw only 1 of its 100 stocks avoid a decline. Of the most influential stocks the worst performers were Tesla (-8.28%), Broadcom (-6.91%) and Amazon (-4.60%).

When monitoring the broader stock market, similar conditions are seen confirming the investor sentiment is significantly lower and not solely related to the tech industry. The worst performing sectors are the housing and banking sectors. However, investors should also note that the decline was partially due to a build-up of profits over the past months. As a result, investors could easily sell and reduce exposure to cash in profits and lower their risk appetite.

Analysts note that despite the Federal Reserve's hawkish stance, the Chairman provided a positive outlook. He highlighted optimism for the economy and the employment sector. Therefore, many analysts continue to believe that investors will buy the dip, even if it’s not imminent.

A Hawkish Federal Reserve And Powell’s Guidance

Even though traditional economics suggests a rate cut benefits the stock market, the market had already priced in the cut. As a result, the rate cut could no longer influence prices. Investors are now focusing on how the Federal Reserve plans to cut in 2025. This is what triggered the selloff and the decline.

Investors were looking for indications of 3-4 rate cuts by the Federal Reserve in 2025 and for the first cut to be in March. However, analysts advise that the forward guidance by the Chairman, Jerome Powell, clearly indicates 2 rate adjustments. In addition to this, analysts believe the Fed will now cut next in May 2025.

The average expectation now is that the Federal Reserve will cut 0.25% on two occasions in 2025. The Fed also advised that it is too early to know the effect of tariffs and “when the path is uncertain, you go slower”. This added to the hawkish tone of the central bank. However, surveys indicate that 15% of analysts believe the Federal Reserve will be forced into cutting rates at a faster pace.

As a result, the US Dollar Index rose 1.25% and Bond Yields to a 7-month high. For investors, this makes other investment categories more attractive and stocks more expensive for foreign investors. However, the average decline the NASDAQ has seen before investors buy the dip is 13% ($19,320). This will also be a key level for investors if the NASDAQ continues to decline.

NASDAQ - Technical Analysis

Due to the bearish volatility, the price of the NASDAQ is trading below all major Moving Averages and Oscillators on the 2-Hour chart. After retracement the oscillators are no longer indicating an oversold price and continue to point to a bearish bias. Sell indications are likely to strengthen if the price declines below $21,222.60 in the short-term.

Key Takeaways:

*A hawkish Federal Reserve cut interest rates by 0.25% and indicates only 2 rate cuts in 2025!
*The stock market witnesses its worst day of 2024 due to the Fed’s hawkish forward guidance. Economists do not expect a rate cut before May 2025.
*Housing and bank stocks fell more than 4%. Investors are cashing in their gains and not looking to risk while the Fed is unlikely to cut again until May 2025.
*The US Dollar Index rises close to its highest level since November 2022. US Bond Yields also rise to their highest since May 2024.
*The NASDAQ’s average decline in 2024 before investors opt to purchase the dip is 13%.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Michalis Efthymiou
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.