Daily Market Newsletter - January 8, 2024: Stock and Forex Insights, CTA Recommendations

Daily Market Newsletter - January 8, 2024

Explore today's market insights from Trading Central's global research desks! These directional views serve as the perfect starting point for your research, helping you identify opportunities that align with your strategy.

Market Wrap: Stocks, Bonds, Commodities

On Friday, U.S. stocks successfully halted their recent decline. The Nasdaq 100 rose 0.15% to 16,305, the S&P 500 gained 0.18% to 4,697, and the Dow Jones Industrial Average increased by 0.07% to 37,466.

December's U.S. official jobs report revealed a robust labor market, surpassing expectations with 216,000 non-farm payrolls added. The jobless rate remained steady at 3.7%, and average hourly earnings grew by 0.4% on a monthly basis.

The U.S. Institute for Supply Management (ISM) services purchasing managers index fell to 50.6 in December, while factory orders in November exceeded expectations by growing 2.6% month-on-month.

Telecom services (+1.70%), banks (+1.25%), and semiconductors (+1.07%) were the top-performing stock sectors. Key tech stocks, including Nvidia (NVDA), Advanced Micro Devices (AMD), and Meta Platforms (META), posted notable gains.

Peloton Interactive (PTON) continued its upward trajectory, rising 9.62% after a 14% surge on Thursday. The fitness platform's collaboration with TikTok for personalized social content fueled the positive momentum.

Snowflake (SNOW) received an “outperform” rating from RBC Capital, leading to a 2.94% gain. Meanwhile, European stocks closed lower.

Oil prices remained elevated due to Middle East tensions, with U.S. WTI crude-oil futures rising 2.37% to $73.9 a barrel. Gold prices edged up to $2,044 an ounce.

Market Wrap: Forex

The U.S. dollar maintained its strength against major currencies, reaching 102.47 on the dollar index.

EUR/USD dipped 5 pips to 1.0938, with the Eurozone's inflation rate rebounding to 2.9% in December. Germany's retail sales dropped 2.5% in November.

USD/JPY reached a high of 145.98, the highest since December 13, before retreating to 144.71. GBP/USD gained 36 pips to 1.2715, and AUD/USD added 8 pips to 0.6713.

Bitcoin exhibited resilience over the weekend, holding above $44,000, with investors anticipating approvals for Bitcoin spot exchange-traded funds (ETF) this week.

Key Levels and Scenarios

GBP/USD Intraday:Maintain a bullish bias above 1.2690.

• Pivot: 1.2690

• Preference: Long positions above 1.2690, targeting 1.2740 & 1.2770.

• Alternative: Below 1.2690, anticipate downside with targets at 1.2665 & 1.2645.

• Comment: RSI indicates technical strength above 50.

USD/JPY Intraday:Under pressure.

• Pivot: 145.10

• Preference: Short positions below 145.10, targeting 143.80 & 143.35.

• Alternative: Above 145.10, look for further upside with targets at 145.55 & 146.00.

• Comment: RSI signals downside momentum.

EUR/USD Intraday:Bullish bias remains.

• Pivot: 1.0920

• Preference: Long positions above 1.0920, targeting 1.0960 & 1.0980.

• Alternative: Below 1.0920, anticipate further downside with 1.0900 & 1.0880 as targets.

• Comment: Limited extent expected in the consolidation.

Dow Jones (CME) Intraday:Choppiness observed.

• Pivot: 37840.00

• Preference: Short positions below 37840.00, targeting 37500.00 & 37390.00.

• Alternative: Above 37840.00, anticipate further upside with targets at 37970.00 & 38070.00.

• Comment: Choppy price action with a bearish bias expected as long as 37840.00 resists.

Note:Due to market volatility, key levels may have already been reached, and scenarios played out.