US shares rallied on Friday, rebounding off the lows of the bear market. In the meantime, the bounce-back of the US shares capped its first weekly advance since May. The Dow Jones Industrial Average advanced 2.68%, 823.32 points. The S&P 500 jumped 3.06%, and the Nasdaq Composite rallied 3.34% to 11,607.62 on Friday. All three major indices snapped the losing streaks as investors deliberated the idea of whether stock markets have been oversold and have hit a bottom; however, several investment banks remained pessimistic outlook. Moreover to the US economic data, the US Consumer Sentiment from a University of Michigan survey hit a record low of 50 in June; a gloomy consumer sentiment means that the demand for goods and services has decreased, impacting the entire economic ecosystem, including corporates, employment opportunities, and the stock market.

Over the weekend, G-7 countries announced that they will ban the import of Russian gold, so-called gold sanctions. According to US President Joe Biden, world leaders need to work together against Russia as the invasion of Ukraine by Russia has brought and caused painful and serious impacts on food and energy supplies across the world. Imposing gold sanctions on Russia might cause a severe impact on Russia as Russia has used gold to support its currency as a way to circumvent other sanctions. One example would be swapping the gold for a more liquid foreign exchange that is not subject to sanctions from other countries.

Main Pairs Movement

EUR/USD edged higher, up 0.38% on Friday. The greenback was unable to gather bullish momentum amid the concerns of an economic slowdown in the US. In the meantime, the ECB pointed out that it would have to aim for large interest rate hikes since its monetary policy has fallen behind. Thus, the euro-dollar got boosted.

USD/JPY moved upside after the release of Japan’s inflation. The core CPI in Japan jumped to 2.1% in May, the second consecutive jump. With the BOJ continuing to keep its ultra-loose monetary policy, the Japanese Yen weakens against the greenback. On Friday, USD/JPY was up 0.17%, finishing at 135.16.

Gold was up 0.25%, and closed at $1,827.31 on Friday. The precious metal was comparably stronger than the greenback as the greenback lost some interest amid cooling hawkish expectations from the Fed.

AUD/USD was up 0.7%, trading at 0.6942 at the end of the day. The Aussie rallied as the demand for the US dollar decreased resulting in the risk sentiment. In the meantime, during the testimony of Fed Chairman Jerome Powell, he pointed out that the possibility of raising rates would be based on the incoming economic data and the outlook of the economy; thus, slightly dovish hawkish comments brought the US dollar down.

Technical Analysis

EURUSD (4-Hour Chart)

EURUSD gained 0.38% over the last trading day of the week to end the week in positive territory. Depressed PMI data from Germany and the Euro area has added concerns over an impending recession in the EU and uncertainty about the ECB’s abilities to tame inflation and support economic growth. On the economic docket, ECB President Lagard is set to speak on the 28th and Fed Chair Jerome Powell is set to speak on the 29th.

On the technical side, EURUSD continues to trade below our previously estimated resistance level of 1.05754. Selling pressure remains strong around this level. RSI for the pair sits at 55.93, as of writing. On the four-hour chart, EURUSD currently trades above its 50-day SMA, but below its 100 and 200-day SMA.

Resistance: 1.05754, 1.06315

Support: 1.0382

GBPUSD (4-Hour Chart)

GBPUSD traded sideways over the last trading day of the week. Cable ended the week with a 0.44% gain. U.K. retail sales declined by 0.5% monthly in May, thus hurting some of the demand for the British Pound. On the economic docket, British GDP figures are set to release on the 30th, after BoE governor Bailey’s speech on the 29th.

On the technical side, GBPUSD continues to trade below our previously estimated resistance level of 1.2381; on the other hand, support levels for Cable remain firm at 1.2173 and 1.20824. RSI for the pair sits at 44.58, as of writing. On the four-hour chart, Cable currently trades below its 50, 100, and 200-day SMA.

Resistance: 1.2381, 1.25047

Support: 1.2173, 1.20824

USDJPY (4-Hour Chart)

USDJPY gained 0.17% on the last trading day of the week to close the week in positive territory despite experiencing strong pullbacks on Wednesday and Thursday. The bullish sentiment continues to surround USDJPY as interest rate differences between the U.S. and Japan continue to overshadow any sort of fundamental news effects. On the economic docket, Japan’s Tankan large non-manufacturers index is set to release on the 30th.

On the technical side, USDJPY has found new support at the 134.76 price region and continues to trend upwards. The resistance level at 136.57 has not been challenged since Wednesday. RSI for the pair sits at 61.73, as of writing. On the four-hour chart, USDJPY currently trades above its 50, 100, and 200-day SMA.

Resistance: 136.57

Support: 133.84, 134.76

Economic Data

Dear Client,

As part of our commitment to provide the most reliable service to our clients, there will be a server maintenance this weekend.

Maintenance Hours:

2022/06/25 16:00 – 18:00 (Server time)

Please be reminded that:

During this weekend’s maintenance period, clients can still trade as usual.

However, the stability of quotations and market liquidity will be affected and decreased.

Thank you for your patience and understanding.

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

Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ”.

Please note the specific adjustments as follows:

Note: The above data is for reference only, the actual execution date may be changed, please refer to the MT4/MT5 software for details.

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

Dear Client,

Please be advised of the upcoming SHOPIFY INC – CLASS A (SHOP) stock split that is going to take place as per the following schedule:

Ex-Date: June 29th, 2022. Common shares will trade at the new split-adjusted price.

Important implications of the Shopify Stock Split:

1. The quantity of shares of each client’s position will multiply by 10.

2. Post-split, the “open price” and “take profit / stop loss” of each position will be adjusted, which will be the original price divided by 10.

3. The estimated post-split price may be 1/10 of the EOD price on 28th, June.

4. All pending orders at the time of the split (Buy Limit, Sell Limit, Buy Stop, Sell Stop, Buy Stop Limit, Sell Stop Limit) will be cancelled.

5. All SHOP holding positions and pending orders on DEMO account will be closed as a result of the stock split.

Q. What is a stock split?
A. A stock split is a corporate action taken by companies that have seen their share price increase to levels that are either too high or are beyond the price levels of similar companies in their sector, to divide their existing shares into two or more shares.

Q. Why do stocks split?
A. The primary motive is to make the shares more affordable to small investors even though the underlying value of the company has not changed. Shopify would like its stock to be more accessible to a broader base of investors.

Q. What is the split ratio?
A. Shopify also announced it will split its stock in a 10 for 1 offering.

Q. What will this split mean to investors?
A. Each share of SHOP stock that an investor owns before Ex-Date (June 29th, 2022) will be eligible for stock split. Investors will receive nine additional shares and the stock price will be 1/10.

Here is an example:
If an investor owns 100 shares and the market price is $300, $350 as take profit. After 10 for 1 stock split, the investor will own 100*10= 1,000 shares and the estimated post-split price would be $300/10 = $30, and the take profit price will adjust to $350/10=$35.

Q. Does the 10 for 1 stock split mean the value of my SHOP shares will increase nine times?
A. Unfortunately, not. As stated in the above example, the increase in the number of stocks means every share is now worth less than its previous value, precisely, it’ll be 1/10th the previous value.

Q. How do stock splits affect short sellers?
A. Stock splits do not affect short sellers in a material way. There are some changes that occur as a result of a split that affects the short position, but they don’t affect the value of the short position(s).

If you have any questions, our team will be happy to answer your questions. Please mail to [email protected] or contact the service online.

Dear Client,

In order to provide you with a better user experience, VT Markets will upgrade our MT4 software and server to version 1353 on July 2, 2022 (Saturday).

Please ensure that your MT4 is up to date after July 2, 2022, as outdated versions (ver1340 and below) might experience issues connecting to the server.

Check your MT4 software version with the following steps:
※ PC: Open the MT4 software – Click “About” in “Help” in the toolbar;
※ Android: Open the MT4 app – Click “About” in the left toolbar;
※ iOS: Open the MT4 app-Settings – Click “Settings” in Settings page.

For PC users, please uninstall the software and install the latest version from the following link:
https://vtmarketscn.com/trading/platforms/metatrader-4/

For Android users, please go to the following link to update your MT4 version:
https://play.google.com/store/apps/details?id=net.metaquotes.metatrader4

For iOS mobile users, please go to the following link to update your MT4 version:
https://apps.apple.com/au/app/metatrader-4/id496212596

If you have any questions, our team will be happy to help. Please email [email protected] or contact our online service.

Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ”.

Please note the specific adjustments as follows:

Note: The above data is for reference only, the actual execution date may be changed, please refer to the MT4/MT5 software for details.

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

Dear Client,

To provide a favorable trading environment to our clients, VT Markets will modify the trading setting of US Shares at the following time:

1. From June 20th, the 14 US stock contracts listed in the table below will be traded on the preferential terms of 0 commission.

2. From June 20, the name of the US stock CFD product FB will be adjusted to META, and the full name will be adjusted to Meta Platforms Inc.

3. From June 27th, the minimum lot of US Shares will be chenged to 0.1.

Notes: The figures above are only for reference. The actual execution data should be subject to the numbers on MT4/MT5.

Friendly reminders:
All specifications of US Shares stay the same except commission, name and minimum lot.

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

Dear Client,

As part of our commitment to provide the best reliability and service to our clients, the trading hours of certain products will be adjusted as follows due to the maintenance.

Available trading hours:

2022/06/11 18:00 – 24:00 (Server time)
2022/06/12 00:00 – 24:00 (Server time)

Please be reminded that the following aspects might be affected during the maintenance:

1. The functions of client portal operations might be disabled during the maintenance.

2. There might be a gap between the original price and the price after maintenance. Pending orders, Stop Loss, and Take Profit settings within the gap will be filled at the market price after maintenance activity ends.

3. The quotations of products will be paused. Clients may not be able to open new positions or close the held positions.

No action is required by our client. Your service will be back online after the maintenance is completed.

Thank you for your patience and understanding about this important initiative.

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

Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ”.

Please note the specific adjustments as follows:

Note: The above data is for reference only, the actual execution date may be changed, please refer to the MT4/MT5 software for details.

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

Dear Client,

To provide our clients with a wealth of trading options, VT Markets will launch new products on Jun 13th, 2022.

The specifications of the new products are shown in the table below.

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

If you have any questions, our team will be happy to answer your questions. Please mail to
[email protected] or contact the online service.