Daily Market Insights - January 5, 2024
Sommario：Unveiling Market Trends and Forex Analysis
DAILY MARKET NEWSLETTER
January 5, 2024
MARKET WRAP
MARKET WRAP: STOCKS, BONDS, COMMODITIES
On Thursday, the Nasdaq 100 declined a further 86 points (-0.53%) to 16,282, extending its losing streak to a fifth session, the longest one since October 2022. The S&P 500 also closed 16 points lower (-0.34%) at 4,688, while the Dow Jones Industrial Average edged up 10 points (+0.03%) to 37,440.
The ADP jobs report showed that the U.S. economy added 164,000 private jobs in December (vs +99,000 expected).
The latest number of initial jobless claims declined to 202,000 (vs 225,000 expected).
Investors are expecting the U.S. official jobs report for December, to be released later today, to show a slower addition of non-farm payrolls of 150,000 and a higher jobless rate of 3.9%.
Meanwhile, the U.S. 10-year Treasury yield gained 8.6 basis points to 3.993%.
Energy (-1.63%), retailing (-1.62%), and technology hardware & equipment (-1.15%) stock sectors lost the most during the session.
Microsoft (MSFT) declined 0.72%, Apple (AAPL) fell 1.23%, Alphabet (GOOGL) dropped 1.82%, and Amazon.com (AMZN) lost 2.63%.
Nvidia (NVDA) gained 0.90%, while ON Semiconductor (ON) slid 3.92% and NXP Semiconductors (NXPI) was down 3.85%.
Mobileye Global (MBLY) plunged 24.55%, as the self-driving system developer gave a lower-than-expected full-year revenue forecast.
Peloton Interactive (PTON) jumped 13.94%. The interactive fitness platform announced a collaboration with TikTok to offer personalized social contents.
European stocks closed higher, with the DAX 40 gaining 0.48%, the CAC 40 up 0.52%, and the FTSE 100 up 0.53%.
U.S. WTI crude-oil futures eased $0.31 to $72.39 a barrel.
Gold price added $2 to $2,043 an ounce.
MARKET WRAP: FOREX
The U.S. dollar index was little changed at 102.39.
EUR/USD climbed 25 pips to 1.0946. Inflation in Germany increased to 3.7% on year in December (as expected), and that in France also ticked up to 3.7% (vs 3.8% expected).
USD/JPY jumped 136 pips (+0.95%) to 144.65.
GBP/USD rose 18 pips to 1.2680, while AUD/USD dipped 25 pips to 0.6704.
USD/CHF added 11 pips (+0.13%) to 0.8501.
USD/CAD was little changed at 1.3350.
Bitcoin regained upward momentum, as it surpassed both $43,000 and $44,000 levels. Investors kept expecting approvals for Bitcoin spot exchange-traded funds (ETFs) to be announced within a few days.
Key Levels
| Currency Pair | Intraday Direction | Pivot | Preference | Alternative Scenario | Comment |
|---|---|---|---|---|---|
| GBP/USD | Bullish | 1.2660 | Long positions above 1.2660 with targets at 1.2725 & 1.2750 in extension. | Below 1.2660 look for further downside with 1.2635 & 1.2610 as targets. | The RSI shows upside momentum. |
| USD/JPY | Bullish | 144.20 | Long positions above 144.20 with targets at 145.00 & 145.40 in extension. | Below 144.20 look for further downside with 143.75 & 143.30 as targets. | The break above 144.20 is a positive signal that has opened a path to 145.00. |
| EUR/USD | Bullish | 1.0930 | Long positions above 1.0930 with targets at 1.0970 & 1.0990 in extension. | Below 1.0930 look for further downside with 1.0910 & 1.0890 as targets. | A support base at 1.0930 has formed and has allowed for a temporary stabilization. |
| Dow Jones (CME) | Bearish | 37840.00 | Short positions below 37840.00 with targets at 37660.00 & 37580.00 in extension. | Above 37840.00 look for further upside with 37970.00 & 38070.00 as targets. | The RSI is below its neutrality area at 50%. |
Please note that due to market volatility, some of the key levels may have already been reached and scenarios played out.
WikiFX Trader
WikiFX Trader
Rate Calc
