Welcome to the Weekly Market Update!
We are here to provide you with the pivotal financial happenings and insights. Our focus is on the primary stories of the week, alongside a deep dive into market dynamics, economic milestones, events to monitor, and technical forecasts. Here’s the essential roundup to keep you savvy and ready for strategic financial moves.
Top Stories of the Week
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Nvidia Outperforms Earnings Expectations: Nvidia, a key player in the AI industry, reported earnings and revenue that surpassed forecasts. However, the company cautioned that new U.S. export regulations to China might negatively impact future sales.
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OPEC+ Postpones Upcoming Meeting: The Organization of Petroleum Exporting Countries and allies delayed their November meeting, resulting in a sharp decline in oil prices amidst growing uncertainty over future supply cuts.
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Leadership Shuffle at OpenAI: Sam Altman, previously ousted from OpenAI, has been reinstated as CEO following a brief tenure at Microsoft. This change comes amid threats of employee departures and the establishment of a new governing board at OpenAI.
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Microsoft’s Shares Reach Historic Highs: Microsoft’s stock value soared to unprecedented levels, driven by news of Sam Altman heading an AI research division. However, the share price experienced a downturn following Altman’s decision to return to OpenAI.
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Binance Leadership Faces Legal Repercussions: Changpeng Zhao, CEO of Binance, has admitted to money laundering charges, incurring a personal fine of $50 million and a corporate penalty of $4.3 billion for Binance, which will continue its operations.
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Nasdaq Hits 2023 Peak: Propelled by record performances from Microsoft and Nvidia, the Nasdaq index climbed above 16,000, marking its highest point in 2023.
Market Analysis
- Eurozone PMI Decline Sparks Recession Worries: Services and Manufacturing sectors in France continued to weaken in November, intensifying fears of an impending recession across the Eurozone. Despite marginal improvements in German and overall Eurozone PMIs, the overall trend remains deeply contractionary. Policymakers, uncertain about declining inflation rates, are hesitant to cease interest rate hikes. Germany’s Bundesbank Vice President Claudia Buch cautions of increasing rate expenditures and potential financial strains. Amid these challenges, the Eurodollar witnessed a slight gain, bolstered by a modestly weaker dollar, as it struggles to uphold the critical $1.09 support level.
Economic Highlights
- Japanese Inflation Rise Fuels BOJ Policy Shift Speculation: Japan’s headline inflation climbed to 3.3%, slightly below expectations, while core inflation edged up to 2.9%, intensifying speculation about a potential policy shift by the Bank of Japan (BOJ). In contrast, Japan’s manufacturing sector reported a sixth consecutive month of decline, driven by persistently weak demand. The USD/JPY currency pair shows a bearish trend following these developments, potentially targeting the 148.36 level. Conversely, bullish forces confront significant resistance at the 150 mark, as market participants closely watch the BOJ’s next move in response to the mixed economic signals.
Upcoming Events to Watch
- OPEC+ Meeting Postponed (Nov 30): OPEC+ delays its meeting, raising speculation about further oil production cuts. With recent low oil prices, Saudi Arabia and Russia hint at continuing supply restrictions.
- Eurozone CPI Data (Nov 30): October’s Eurozone inflation dropped to a two-year low, sparking expectations of an ECB rate cut next year. Despite the easing inflation, ECB President Lagarde remains cautious.
- US Core PCE Index Release (Nov 30): Core PCE data, the Fed’s favored inflation measure, will reveal if September’s easing trend continues. Investors watch for signs of a balanced economic slowdown.
- Canada’s Economic Indicators (Next Week): Upcoming Canadian GDP, manufacturing PMI, and labor data expected to show economic stagnation and labor market cooling. Potential BoC rate cuts anticipated in Spring.
- Salesforce Earnings Announcement (Nov 30): Salesforce to report earnings, with high expectations for surpassing forecasts. Focus on Salesforce’s integration of Slack following its acquisition.
Technical Analysis
We have analyzed the most popular trading pairs and assets, including EUR/USD, GBP/USD, Gold, and US500. Our aim is to provide you with an insightful analysis of their trends and support/resistance levels, which will help you make informed decisions.
EUR/USD
EUR/USD maintains its uptrend, staying above the 50-day SMA with higher highs and lows. The RSI reads 66, hinting at potential overbuying, but the trend remains strong. The pair has breached previous resistance, now support at 1.075, with eyes on resistance near 1.085. The bullish outlook persists, though a brief consolidation could follow the recent rally.
GBP/USD
The GBP/USD pair is showing signs of an uptrend, bouncing off support at 1.227 and rising above the 50-day SMA. The RSI stands at 64.1, suggesting bullish momentum without being overbought. The immediate resistance is found at 1.256, with a break above potentially paving the way for further gains.
XAU/USD
Gold is maintaining its uptrend, with the RSI at 60.6, suggesting healthy bullish momentum. It’s currently challenging resistance at 2042.97. A conclusive push above this level could confirm a continuation of the uptrend, while failure to break could lead to support retests at 1901.26.
XUS500
The S&P 500 is exhibiting bullish behaviour, consistently trading above the 50-day SMA. With the RSI at 71.2, the market may be overbought, which could lead to a pullback. Resistance lies at 4654.51, with substantial support at 4361.990.
Thank you for reading! Wishing you successful trades ahead!
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