On Wednesday, stocks saw a decline as investors awaited an important inflation report due later in the week, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all experiencing losses. Notable decliners included UnitedHealth, Intel, Alphabet, and Urban Outfitters, the latter due to disappointing quarterly results. The market’s attention is now on January’s forthcoming personal consumption expenditure (PCE) data, a crucial inflation indicator for the Federal Reserve. This anticipation comes amid mixed movements in the currency market, where the dollar index made slight gains while investors closely monitor upcoming inflation reports from the U.S. and the eurozone. These reports are pivotal for future monetary policy and interest rate expectations, especially with predictions leaning towards rate cuts by the Federal Reserve and the European Central Bank (ECB) within the year, amidst contrasting inflationary trends in the U.S. and eurozone.

Stock Market Updates

Stocks experienced a decline on Wednesday as the market anticipated an important inflation report set to be released later in the week. The S&P 500 dropped slightly by 0.17%, closing at 5,069.76, while the Nasdaq Composite experienced a more significant fall of 0.55%, ending at 15,947.74. The Dow Jones Industrial Average also saw a minor decrease, losing 23.39 points, or 0.06%, to close at 38,949.02, marking its third consecutive day of losses. Among the notable decliners were UnitedHealth, which fell nearly 3%, and tech giants Intel and Alphabet, which dropped 1.7% and 1.8%, respectively. Additionally, Urban Outfitters saw a significant decrease of 12.8% following its announcement of weaker-than-expected fourth-quarter results.

The market’s focus is now on the upcoming personal consumption expenditure reading for January, a critical inflation measure closely watched by the Federal Reserve. This report is highly anticipated as investors and analysts gauge the potential for continued economic growth and the impact of inflation on monetary policy. The market’s recent performance has been less robust, with the major indexes on track for their second negative week in the last three, despite having reached record highs recently. The downturn, especially in the tech sector, has sparked debates about the durability of the market rally, which has been partly driven by enthusiasm over advancements in artificial intelligence.

Data by Bloomberg

On Wednesday, the overall market experienced a slight downturn, with all sectors combined seeing a decrease of 0.17%. Despite this general downtrend, several sectors managed to post gains, led by Real Estate, which saw a notable increase of 1.28%. Other sectors that experienced growth included Financials, Consumer Discretionary, Utilities, Industrials, Materials, and Consumer Staples, with increases ranging from 0.09% to 0.35%. On the flip side, some sectors faced declines, with Energy, Health Care, Information Technology, and Communication Services witnessing drops between -0.20% and -0.92%, indicating a mixed performance across different areas of the market.

Currency Market Updates

The currency market is currently experiencing nuanced movements as investors anxiously await inflation reports from the U.S. and eurozone, which could significantly influence the trajectory of risk-sensitive currencies. The dollar index saw a slight increase of 0.1%, though it retreated from its early Wednesday highs, indicating a cautious stance among traders. The EUR/USD pair dipped marginally by 0.05%, recovering after testing key support levels amid a broad-based rise in the dollar earlier in the day. The focus now shifts to Thursday’s release of the U.S. core PCE and eurozone CPI reports, which are expected to play a critical role in determining whether the recent reduction in anticipated Fed rate cuts for 2024—and the consequent support this has lent to the dollar—will continue or come to a halt.

Market expectations are leaning towards the Federal Reserve beginning to cut rates by June, with a total of 81 basis points of easing anticipated by the end of the year. Similarly, a June rate cut by the ECB is fully priced in, with expectations of 90 basis points of cuts throughout the year. These developments come as core PCE in the U.S. is forecasted to rise, contrasting with December’s figures, and with the euro zone’s overall and core CPI also set for release, offering further insights into inflationary trends. Amidst this backdrop, the USD/JPY pair has seen a slight increase, attempting to continue its upward trend as markets digest varying signals from Fed speakers and global economic indicators, highlighting the interconnectedness of global financial markets and the significant impact of central bank policies and economic data on currency valuations.

Picks of the Day Analysis

EUR/USD (4 Hours)

EUR/USD Faces Downward Pressure Amid Economic Indicator Discrepancies

The EUR/USD pair experienced a decline early Friday, pressured by disappointing sentiment indicators from Europe and a significant disparity in US GDP figures that maintained the currency pair’s position within a familiar range midweek. With a packed schedule, Thursday’s focus shifts to German Retail Sales and CPI data, alongside the US Personal Consumption Expenditure (PCE) Price Index inflation figures. The week will conclude with Friday’s release of the pan-European Harmonized Index of Consumer Prices (HICP) inflation data and the US ISM Manufacturing PMI for February, providing critical insights into economic health and potential currency movement directions.

Chart EUR/USD by TradingView

On Wednesday, the EUR/USD moved slightly lower and was able to reach the lower band of the Bollinger Bands. Currently, the price is moving just below the middle band, suggesting a potential upward movement to reach above the middle band. Notably, the Relative Strength Index (RSI) maintains its position at 51, signaling a neutral outlook for this currency pair.

Resistance: 1.0858, 1.0896

Support: 1.0823, 1.0783

XAU/USD (4 Hours)

XAU/USD Steady Amid Economic Expansion and Fed Remarks

Gold prices remained stable near $2,030 on Wednesday, achieving a modest increase of 0.17% as the US economy showed signs of expansion according to the latest BEA report. Despite the US GDP for the last quarter of 2023 slightly missing expectations and mixed retail and wholesale inventory data, a fall in US Treasury bond yields has supported gold prices, keeping them near monthly and weekly highs, just below the 50-day SMA. Meanwhile, comments from Federal Reserve Regional Presidents, Susan Collins and John Williams, about potentially easing policy later in the year while still not meeting the core inflation goal of 2%, have influenced market sentiment, alongside a cautious Wall Street trading mostly in the red.

Chart XAU/USD by TradingView

On Wednesday, XAU/USD moved slightly higher to reach the upper band of the Bollinger Bands. Currently, the price is moving just below the upper band, suggesting a potential higher movement to reach above the upper band and reach the resistance level. The Relative Strength Index (RSI) stands at 57, signaling a neutral but bullish outlook for this pair.

Resistance: $2,042, $2,056

Support: $2,030, $2,017

Economic Data

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

Exploring the Dynamics of Forex Trading in Malaysia

Forex trading in Malaysia has witnessed significant growth, becoming one of the most popular markets for both seasoned and novice traders. This surge is attributed to Malaysia’s robust economic fundamentals, the global nature of the forex market, and the advent of online trading platforms.

This article delves into the intricacies of Forex trading within the Malaysian context, exploring the legal landscape, market dynamics, educational resources, and technological advancements that are shaping the future of trading in the country.

• Significant growth in Forex trading in Malaysia.
• Influence of economic fundamentals and online platforms.
• Exploration of legal, market, educational, and technological aspects.

Legal Framework and Regulatory Bodies:

Forex trading in Malaysia is legal and regulated by the Securities Commission Malaysia (SC) and the Bank Negara Malaysia (BNM). These bodies ensure that financial market participants operate transparently and fairly, protecting investor interests and maintaining market integrity.

Traders and brokers must adhere to stringent regulations, including compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) policies. It’s crucial for traders to engage with brokers registered and licensed by the SC to ensure their investments are protected.

• Legal and regulated by SC and BNM.
• Importance of compliance with AML and CTF policies.
• Necessity of engaging with registered and licensed brokers.

Forex Market Trends and Opportunities:

The Malaysian forex market is characterized by its diversity and the presence of both local and international currencies. The Malaysian Ringgit (MYR), while not among the major currencies traded globally, plays a significant role in regional trades. Traders in Malaysia benefit from the market’s volatility and the availability of major and exotic currency pairs.

The global economic landscape, geopolitical tensions, and regional economic indicators like trade balances, inflation rates, and monetary policies significantly influence market trends and trading opportunities in Malaysia.

• Diversity and presence of local and international currencies.
• Influence of global economic landscape and regional indicators.
• Opportunities in market volatility and currency pairs.

Educational Resources for Traders:

Education is a cornerstone for successful trading, especially in a market as dynamic as forex. Malaysian traders have access to a plethora of educational resources ranging from online courses, webinars, seminars, and workshops offered by brokers, trading academies, and independent financial analysts.

These resources cover fundamental analysis, technical analysis, risk management strategies, and trading psychology, catering to both beginners and advanced traders.

• Wide range of educational resources available.
• Coverage of analysis, risk management, and trading psychology.
• Catering to both beginners and advanced traders.

The Role of Technology in Trading:

Technology has revolutionized forex trading in Malaysia. The proliferation of trading platforms, both desktop and mobile, has democratized access to global markets. Traders can execute trades, analyze market trends, and manage their portfolios in real-time, from anywhere, at any time.

Furthermore, advanced technologies like artificial intelligence (AI) and machine learning (ML) are being integrated into trading platforms to offer predictive analytics, automated trading bots, and personalized trading insights, enhancing decision-making and strategic planning.

• Revolutionization of trading through technology.
• Access to global markets through various platforms.
• Integration of AI and ML for enhanced trading insights.

Challenges and Risks:

Despite the opportunities, forex trading comes with its set of challenges and risks. Market volatility, while beneficial for profiting from price movements, can also lead to significant losses. The high leverage offered by brokers can amplify gains as well as losses.

Additionally, the forex market’s 24/5 operation requires traders to stay informed about global economic developments constantly. Risk management and emotional control are crucial skills for navigating the forex market successfully.

• Presence of significant risks alongside opportunities.
• Importance of risk management and emotional control.
• Challenges of market volatility and high leverage.

Navigating Success in Malaysia’s Forex Market

Forex trading in Malaysia presents a world of opportunities for those willing to navigate its complexities. With the support of regulatory bodies, the availability of educational resources, and advancements in trading technology, Malaysian traders are well-equipped to participate in this global market.

However, understanding the risks and adopting a disciplined trading strategy are imperative for long-term success. As the market continues to evolve, staying informed and adaptable will be key for traders aiming to achieve profitability and sustainability in forex trading.

• Opportunities amidst complexities in Malaysian Forex trading.
• The crucial role of regulatory support, education, and technology.
• Importance of disciplined strategy and staying informed.

About VT Markets:

VT Markets is committed to providing traders in Malaysia with a robust and reliable trading platform, comprehensive educational resources, and unmatched customer support. Our dedication to transparency and regulation ensures a secure and trustworthy trading environment, empowering our clients to trade with confidence.

Register Your Live Forex Trading Account with VT Markets Here.

Why VT Market for Forex Trading in Malaysia

Choosing VT Markets for Forex Trading offers a distinct advantage for traders seeking a reliable, user-friendly, and technologically advanced trading platform. Our commitment to providing state-of-the-art trading tools and resources ensures that both novice and experienced traders have access to a comprehensive suite of services designed to enhance trading efficiency and effectiveness.

With VT Markets, traders benefit from tight spreads, low latency execution, and a wide range of currency pairs, ensuring competitive trading conditions that can accommodate various trading strategies. Moreover, our dedication to transparency and customer support sets us apart, offering personalized guidance and educational resources to empower traders at every step of their trading journey.

Coupled with robust security measures and regulatory compliance, VT Markets is a trusted partner for those looking to navigate the Forex market with confidence and achieve their trading goals.

Discover the VT Markets difference and unlock your trading potential at vtmarkets.com/my/discover.

On Tuesday, the stock market displayed mixed outcomes with the S&P 500 and Nasdaq Composite experiencing slight gains, while the Dow Jones Industrial Average faced a minor decline amidst anticipation for upcoming inflation data. Corporate earnings, particularly from Macy’s and Lowe’s, alongside economic indicators, played significant roles in market dynamics. Meanwhile, the currency market witnessed subtle shifts, with the Japanese yen strengthening against the dollar following Japan’s higher-than-expected core CPI report. Investor focus remains on key economic releases, including the personal consumption expenditure price index, with global monetary policy expectations influencing market sentiment.

Stock Market Updates

On Tuesday, the stock market saw mixed results as investors awaited crucial inflation data expected later in the week. The S&P 500 edged up by 0.17% to 5,078.18, while the Nasdaq Composite saw a modest increase of 0.37%, closing at 16,035.30. Contrarily, the Dow Jones Industrial Average experienced a slight downturn, dropping by 96.82 points, or 0.25%, to end at 38,972.41. Notable movements included Macy’s, which surged 3.4% after announcing plans to close approximately 150 underperforming stores due to a previous revenue shortfall. Additionally, Lowe’s shares increased by 1.7% following an earnings beat, with Zoom Video and Hims & Hers Health also making significant gains after surpassing Wall Street’s earnings expectations.

A mix of corporate earnings reports and economic indicators influenced the market’s dynamics. The utilities sector led the market with a 1.9% increase, while the communications services and technology sectors also saw gains. This activity followed a decline from record highs the previous week, spurred by Nvidia’s impressive earnings. Moreover, investor sentiment was affected by a drop in consumer confidence amid concerns over a potential labor market slowdown and a divisive political climate, as reported by the Conference Board. Additionally, a decrease in orders for long-lasting goods in January, particularly in transportation, underscored these economic uncertainties. As investors look ahead, the forthcoming release of the personal consumption expenditure price index and personal income data will be closely scrutinized for insights into economic health and monetary policy direction.

Data by Bloomberg

On Tuesdayday, the overall market saw modest gains, with all sectors collectively up by 0.17%. Utilities led the performance with a significant increase of 1.89%, followed by Communication Services and Materials, which rose by 1.03% and 0.35%, respectively. Financials, Consumer Discretionary, and Industrials also experienced gains, though more modest, ranging from 0.12% to 0.27%. Information Technology and Real Estate sectors saw minimal increases, whereas Consumer Staples, Health Care, and Energy sectors faced declines, with Energy recording the largest drop at -0.43%.

Currency Market Updates

The currency market saw nuanced movements with the dollar index slightly declining by 0.09%, influenced by a mix of supportive corporate month-end flows and weaker-than-expected U.S. economic data concerning durable goods and consumer confidence. The Japanese yen emerged as a notable performer, appreciating following a report that showed Japan’s core CPI rising above forecasts. This development came amidst static policy pricing from major central banks such as the Federal Reserve, European Central Bank, and the Bank of Japan, with the market participants keenly awaiting further key data releases scheduled for later in the week and the next.

The FX landscape was further characterized by the lingering weakness of the USD against the JPY, spurred by Japan’s inflation data, while the EUR/USD, GBP/USD, and other major currency pairs saw marginal gains. Despite some reasons to overlook the disappointing U.S. durable goods data, attributed partly to Boeing’s challenges, the misses in economic reports have heightened the anticipation for upcoming releases on core PCE, income, spending, and employment data. Market speculation regarding the Federal Reserve’s interest rate path remains a focal point, especially after Kansas City Fed President Jeffrey Schmid’s hawkish remarks, contrasting with the market’s reduced expectations for Fed rate cuts. The evolving monetary policy expectations for the ECB, BoE, and BoJ also play a critical role in shaping the currency market dynamics, with all eyes on the upcoming eurozone CPI and U.S. core PCE data to gauge potential shifts in monetary policy and currency valuations.

Picks of the Day Analysis

EUR/USD (4 Hours)

EUR/USD Stabilizes Amid Anticipation of Key Economic Data

The EUR/USD pair has been hovering around the 1.0850 mark, showing little movement as traders await impactful economic releases. Following a more significant than expected decline in US Durable Goods Orders for January, market focus now shifts to upcoming US GDP figures, German Retail Sales, CPI data, and the US PCE inflation report. These forthcoming data points are crucial for gauging the economic health of both regions and could potentially influence the currency pair’s direction.

Chart EUR/USD by TradingView

On Tuesday, the EUR/USD moved slightly lower and was able to reach the middle band of the Bollinger Bands. Currently, the price is moving around the middle band, suggesting a potential downward movement to reach below the middle band. Notably, the Relative Strength Index (RSI) maintains its position at 53, signaling a neutral outlook for this currency pair.

Resistance: 1.0858, 1.0896

Support: 1.0823, 1.0783

XAU/USD (4 Hours)

XAU/USD See Modest Gains Amid Weakening Dollar and Anticipation for Key Economic Reports

Gold (XAU/USD) experienced a slight increase in its price during Tuesday’s mid-North American session, trading at $2,034.88, a 0.18% gain, amid a backdrop of falling US Treasury bond yields and a weakening US Dollar, as indicated by a 0.05% drop in the US Dollar Index (DXY). This modest uptick occurs as the precious metal hovers around the 50-day Simple Moving Average, with investors keenly awaiting the Personal Consumption Expenditures (PCE) report and latest Gross Domestic Product (GDP) data, which are anticipated to be significant factors that could drive Gold out of its current $2,020-$2,050 trading range. The outlook is further clouded by the recent report on Durable Goods Orders for January, which fell more sharply than expected, and mixed Home Prices data, suggesting a potentially volatile period ahead for Gold prices.

Chart XAU/USD by TradingView

On Tuesday, XAU/USD moved lower to reach the middle band of the Bollinger Bands. Currently, the price is moving just above the middle band, suggesting a potential consolidation movement. The Relative Strength Index (RSI) stands at 53, signaling a neutral outlook for this pair.

Resistance: $2,042, $2,056

Support: $2,030, $2,017

Economic Data

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

On Monday, the stock market experienced a downturn, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all closing lower, moving away from recent record highs. This shift comes as investors brace for a slew of economic data, including a crucial inflation measure and updates on consumer spending, which could impact Federal Reserve policy decisions. The market’s focus is particularly on the upcoming personal consumption expenditures price index, a preferred inflation indicator by the Fed. Additionally, Amazon’s inclusion in the Dow signifies a shift toward tech and consumer retail sectors, despite a slight dip in its shares. With Treasury yields rising and various economic indicators on the horizon, investors remain cautious amid an uncertain longer-term outlook, even as currency markets react to potential monetary policy adjustments in the U.S. and Europe.

Stock Market Updates

On Monday, the S&P 500 saw a decline, moving away from the record high it reached the previous Friday, as the market anticipated upcoming inflation data. The index fell by 0.38% to 5,069.53, while the Nasdaq Composite dropped by 0.13%, ending the day at 15,976.25. The Dow Jones Industrial Average also experienced a downturn, losing 62.30 points, or 0.16%, to close at 39,069.23. Notably, Amazon was added to the Dow, replacing Walgreens Boots Alliance, which is expected to heighten the index’s focus on the tech and consumer retail sectors, even as Amazon’s shares dipped slightly by 0.15%. Additionally, Treasury yields rose, exerting further pressure on the stock market.

The market’s recent performance has been bolstered by strong earnings from companies like Nvidia, propelling the S&P 500 and the Dow to record highs at the end of the previous week. However, investors remain cautious, looking ahead to several economic indicators due to be released, including the personal consumption expenditures price index, a key measure of inflation favored by the Federal Reserve. Meanwhile, new home sales for January fell short of expectations amid high mortgage rates, underscoring the ongoing economic challenges. This week will also see the release of data on durable orders, wholesale inventories, consumer spending, and PCE numbers, all of which could significantly influence market sentiment.

Data by Bloomberg

On Monday, the market showed a mixed performance across various sectors. While the overall sectors declined by 0.38%, Energy (+0.32%), Consumer Discretionary (+0.23%), and Information Technology (+0.03%) sectors experienced gains, indicating some areas of strength in the market. However, most sectors saw declines, with Utilities (-2.10%) and Communication Services (-2.09%) facing the steepest drops, followed by significant downturns in Real Estate (-1.14%), Materials (-0.59%), Health Care (-0.50%), and Financials (-0.46%). Industrials and Consumer Staples also saw modest declines, underscoring a generally bearish sentiment across the broader market.

Currency Market Updates

In recent currency market updates, the dollar index experienced a slight decline of 0.1%, influenced primarily by gains in the EUR/USD pair, as investors awaited crucial inflation data from both the U.S. and the eurozone. This upcoming data is expected to provide insights into the future of the narrowing gap between bund and Treasury yields observed since mid-February. The anticipation around this data release stems from its potential to either confirm or alter the current expectations regarding monetary policy adjustments by the Federal Reserve and the European Central Bank (ECB), especially in light of recent economic indicators. The dollar, meanwhile, saw an uptick against traditionally lower-yielding currencies like the yen, as well as risk-sensitive currencies such as the Australian dollar and the yuan, amidst speculations on the Federal Reserve’s interest rate decisions following a strong U.S. jobs report and inflation figures that surpassed forecasts.

Investor focus is particularly honed in on the upcoming core PCE reading, February ISMs, and the March 8 employment report, with the outcomes likely to influence Federal Reserve policy discussions significantly. Despite the current market pricing, which reflects a cautious stance on the pace and extent of Fed rate cuts, the longer-term economic outlook remains uncertain. This uncertainty is exacerbated by persistent high-interest rates and a stock market buoyed by a limited number of companies, raising concerns over potential underperformance in U.S. economic data relative to expectations. Meanwhile, in Europe, inflation data releases are poised to further clarify the ECB’s stance on interest rates, amidst statements from President Christine Lagarde indicating sustained wage growth. Additionally, Japan’s inflation figures and the potential implications for the Bank of Japan’s policy direction add another layer to the global currency market dynamics, with significant attention also being paid to the British pound’s movements against the backdrop of the Bank of England’s anticipated policy decisions.

Picks of the Day Analysis

EUR/USD (4 Hours)

EUR/USD Gains Amid Speculation of US Interest Rate Cuts and ECB’s Prudent Stance

The EUR/USD pair experienced a rebound, touching the 1.0860 mark as the new trading week began, fueled by a weakening US dollar and speculation about potential Federal Reserve interest rate cuts, possibly starting in June. This speculation has been supported by recent US inflation data and a tight labor market, increasing the odds of monetary easing. Meanwhile, European Central Bank (ECB) official Yannis Stournaras emphasized the need for cautious monetary policy adjustments, aiming for a gradual approach to rate cuts to ensure inflation targets are met. The interplay between anticipated US monetary policy adjustments and the ECB’s prudent stance is likely to continue driving EUR/USD price actions in the near term.

Chart EUR/USD by TradingView

On Monday, the EUR/USD moved higher and was able to reach the upper band of the Bollinger Bands. Currently, the price is moving just below the upper band, suggesting a potential downward movement to reach the middle band. Notably, the Relative Strength Index (RSI) maintains its position at 60, signaling a slightly bullish outlook for this currency pair.

Resistance: 1.0858, 1.0896

Support: 1.0823, 1.0783

XAU/USD (4 Hours)

XAU/USD Retreats Below $2,030 Amid Rising US Treasury Yields and Technical Pressure

Gold experienced a slight downturn, falling below the $2,030 mark during the American trading session on Monday, as it faced technical and fundamental pressures. The recovery of the 10-year US Treasury bond yields toward 4.3% contributed to the decline in the XAU/USD pair, reflecting a dampened appeal for the non-yielding asset. Technical analysis reveals a decrease in buying interest, with a potential for a bearish extension highlighted by the metal’s performance around critical simple moving averages (SMAs) and technical indicators. Meanwhile, the broader market’s cautious stance ahead of significant US economic data releases, including the closely watched US Core Personal Consumption Expenditures (PCE) Price Index, adds to the bearish sentiment surrounding gold.

Chart XAU/USD by TradingView

On Monday, XAU/USD moved lower to reach the middle band of the Bollinger Bands. Currently, the price is moving just above the middle band, suggesting a potential consolidation movement. The Relative Strength Index (RSI) stands at 55, signaling a neutral outlook for this pair.

Resistance: $2,042, $2,056

Support: $2,030, $2,017

Economic Data

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

As we approach the end of February 2024, the financial world turns its focus towards a series of crucial economic updates slated for release. These reports, spanning from Japan’s inflation rates to the ISM Manufacturing PMI in the United States, are poised to provide fresh insights into the global economic landscape. Among these, the Reserve Bank of New Zealand’s rate statement stands out as a particularly significant event. Here’s what to expect in the week ahead:

February 27, 2024: Japan’s inflation rate 

The annual inflation rate in Japan has seen a decrease, landing at 2.6% in December 2023, down from 2.8% the previous month. This marks the lowest inflation rate since July 2022. Analysts are now eyeing a further drop to 2.1% for January 2024, with the data expected to be unveiled on 27 February. This anticipated decrease could signal easing inflationary pressures within the Japanese economy, offering a glimpse into the country’s current economic health.

February 27, 2024: US durable goods orders

In the United States, new orders for manufactured durable goods showed no significant change in December 2023, a stark contrast to the 5.5% rise observed in November. The forecast for January 2024 is less optimistic, with analysts predicting a 4.5% decline. Set to be released on 27 February, this data could reflect the changing dynamics in U.S. manufacturing and consumer confidence.

February 28, 2024: Australia’s CPI 

Australia’s Consumer Price Index (CPI), a key indicator of inflation, increased by 3.4% in the year to December 2023, a slowdown from the 4.3% climb seen in November. Projections suggest a slight easing to 3.2% for January 2024, with the figures due on 28 February. A moderation in CPI growth may indicate that inflationary pressures are beginning to stabilise in Australia.

February 28, 2024: Reserve Bank of New Zealand’s rate decision

The Reserve Bank of New Zealand (RBNZ) previously held its official cash rate (OCR) steady at 5.5% during its November meeting. This pause, consistent for the fourth consecutive time, met market expectations. Analysts widely anticipate that the RBNZ will maintain the OCR at 5.5% in its upcoming 28 February meeting. The decision is keenly awaited, as it could signal the central bank’s outlook on New Zealand’s economic conditions and inflationary trends.

February 29, 2024: Canada’s GDP 

Canada’s GDP growth for November exceeded expectations, registering a 0.2% increase. This improvement followed three months of stagnant growth. The forecast for December 2023 points to a further rise of 0.3%, with the announcement scheduled for 29 February. A consecutive growth increment would signify a strengthening in the Canadian economy’s recovery momentum.

February 29, 2024: US core PCE price index

The core PCE price index in the US, an important measure of inflation that excludes food and energy costs, experienced a slight uptick of 0.2% in December 2023. Analysts are now expecting a more pronounced increase of 0.4% for January 2024, with data due on 29 February. This anticipated growth could reflect persisting inflationary pressures within the core sectors of the U.S. economy.

March 1, 2024: US ISM manufacturing PMI

The ISM Manufacturing PMI in the United States showed signs of improvement in January 2024, reaching 49.1 from 47.1 in December, marking the highest level since October 2022. The forecast for February remains optimistic, with analysts predicting the index to hold at 49.1. The upcoming release on 1 March will be closely watched as an indicator of the health and direction of the U.S. manufacturing sector.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

On Thursday, the S&P 500 and Nasdaq Composite reached impressive new heights, largely driven by Nvidia’s remarkable quarterly earnings report. The S&P 500 surged by 2.11%, its best performance since January 2023, while the Nasdaq Composite soared by 2.96%, flirting with its all-time high, thanks to Nvidia’s 16.4% share price jump after reporting a 265% revenue increase from its thriving AI business. This surge highlighted Nvidia’s growing dominance in the tech sector and boosted confidence across the broader market, particularly in Big Tech stocks like Meta, Amazon, Microsoft, and Netflix. Concurrently, the U.S. economy showed signs of robust health with a significant drop in jobless claims and a surge in existing home sales, further fueling market optimism. Meanwhile, currency markets adjusted to the mixed global economic indicators and policy expectations, with the dollar stabilizing and the USD/JPY pair experiencing an uptick, reflecting the complex interplay of global economic trends and monetary policy anticipations.

Stock Market Updates

On Thursday, the S&P 500 reached new heights, propelled by Nvidia’s unexpectedly strong quarterly earnings, which not only boosted the broader market but also significantly lifted the tech sector. The S&P 500 climbed 2.11% to close at 5,087.03, marking its most impressive performance since January 2023, while the Nasdaq Composite soared 2.96% to end the day at 16,041.62, nearing its all-time closing high. Meanwhile, the Dow Jones Industrial Average experienced a notable surge of 456.87 points or 1.18%, surpassing the 39,000 mark for the first time and closing at a new record of 39,069.11, reflecting widespread optimism in the financial markets.

Nvidia, a leading chipmaker, saw its shares jump 16.4% to an all-time high after announcing a staggering 265% increase in total revenue from the previous year, primarily fueled by its booming artificial intelligence business. This growth has positioned Nvidia as one of the largest U.S. companies by market capitalization, with expectations for continued revenue growth in the coming quarter. The enthusiasm around AI and Nvidia’s extraordinary performance has significantly influenced the rally in Big Tech stocks, including notable gains in shares of Meta, Amazon, Microsoft, and Netflix, thereby bolstering confidence in the tech space, and benefiting the broader stock market.

Data by Bloomberg

On Thursday, the stock market witnessed a positive trend across most sectors, with the overall sector experiencing a 2.11% increase in price. Information Technology led the gains with a significant rise of 4.35%, followed by Consumer Discretionary and Communication Services, which saw increases of 2.19% and 1.61%, respectively. Financial, Industrials and Health Care sectors also enjoyed gains, each increasing by over 1%. Materials, Consumer Staples, and Real Estate sectors saw modest rises, with Energy experiencing a slight increase of 0.12%. In contrast, Utilities were the only sector to decline, dropping by 0.77%.

Currency Market Updates

The currency market has seen a notable shift as the dollar index stabilized from a three-week low, propelled by an unexpected drop in U.S. jobless claims which overshadowed the mixed performance in flash PMIs across major economies. Despite the composite PMI readings from the eurozone and the UK slightly surpassing forecasts, and a contraction in the U.S. figures, the market’s attention gravitated towards the robust U.S. jobless claims data, showcasing the lowest levels since before 2018 and comparable to figures last seen in 1969. Additionally, the U.S. housing market demonstrated resilience with existing home sales in January surging by 3.1%, marking the highest point since the previous August, suggesting a sensitivity to fluctuating mortgage rates. This economic optimism was further buoyed by stellar quarterly results from Nvidia, which underscored the rapid expansion of AI usage, influencing global equity markets positively.

Amid these developments, currency pairs reacted to the broader economic indicators and policy expectations. The Euro dipped to a flat position against the dollar, reflective of Germany’s PMI contraction and aligning with anticipations of the ECB’s rate cuts preceding those of the Federal Reserve. Meanwhile, the Sterling showed modest gains against the dollar, buoyed by promising UK PMIs, despite being significantly off its recent high. The USD/JPY pair experienced an uptick, driven by the widening yield spreads between U.S. Treasury and Japanese government bonds, and a general shift towards risk-off flows that placed more pressure on the yen. As the market anticipates upcoming U.S. economic reports, including the core PCE inflation data, income, and consumption figures, the currency landscape remains poised for further adjustments, with special attention to the potential impacts on USD/JPY’s trajectory toward its yearly highs and the looming possibility of Japanese intervention amidst speculations of policy normalization by the Bank of Japan.

Picks of the Day Analysis

EUR/USD (4 Hours)

EUR/USD Retreats from Three-Week High Amid Mixed US Economic Signals and ECB Caution

EUR/USD experienced a decline from its three-week peak around 1.0900, settling near 1.0820 after an initial surge, influenced by positive US job data and varied bond yield performances amidst speculation of future Federal Reserve (Fed) interest rate cuts. The possibility of the Fed easing monetary policy has been bolstered by strong US inflation figures, though the likelihood of a May rate cut seems diminished, with a greater chance anticipated for June. Conversely, the European Central Bank (ECB) maintains a cautious stance against early rate reductions, despite expectations of a downward inflation forecast revision in March. This cautious approach is echoed by ECB officials, emphasizing the premature nature of financial market relaxation, and highlighting ongoing concerns over wage pressures and the labour market’s tightness, suggesting a potential delay in the ECB’s monetary easing.

Chart EUR/USD by TradingView

On Thursday, the EUR/USD moved higher and reached the upper band of the Bollinger Bands. Currently, the price is moving just above the middle band, suggesting a potential upward movement to reach back to the upper band. Notably, the Relative Strength Index (RSI) maintains its position at 58, signaling a neutral outlook for this currency pair.

Resistance: 1.0845, 1.0896

Support: 1.0783, 1.0723

XAU/USD (4 Hours)

XAU/USD Retreats from Peak as US Dollar Recovers Amid Positive Economic Indicators

Spot Gold receded from its recent high of $2,034.86 as the US Dollar regained strength following positive US economic data and increased government bond yields. Despite the Dollar’s initial drop amid a tech-led stock market rally in Asia and Europe, it rebounded before the US markets opened, influenced by less-than-expected growth in Initial Jobless Claims and a surge in February’s PMI figures, indicating a robust expansion in manufacturing and a slight contraction in services. Meanwhile, the 10-year Treasury note yields touched multi-week highs, driven by the Federal Open Market Committee’s minutes, which suggested a cautious approach towards rate cuts, awaiting further inflation progress.

Chart XAU/USD by TradingView

On Thursday, XAU/USD moved lower to reach below the middle band after reaching the upper band of the Bollinger Bands. Currently, the price is moving just around the middle band, suggesting a potential consolidation movement as the bands are squeezing. The Relative Strength Index (RSI) stands at 56, signaling a neutral outlook for this pair.

Resistance: $2,030, $2,042

Support: $2,017, $2,004