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Fundamental Market Analysis for January 10, 2024 USDJPYThe Japanese Yen is weakened by doubts over the likely timing of the next BoJ rate hike. The US Dollar holds near a two-year high and supports USD/JPY ahead of the US NFP report. The Japanese Yen (JPY) is rising in response to comments from Japan's Economy Minister Ryosei Akazawa during the Asian session on Friday, although it lacks bullish confidence amid uncertainty over the Bank of Japan (BoJ) rate hike. Data released today showed that real household spending in Japan fell for a fourth month in November, indicating that the economy is fragile. This gives the BoJ another reason to be cautious about further interest rate hikes, which could continue to undermine the yen. In addition, the yield differential between US and Japanese bond yields has widened significantly over the past month amid the Federal Reserve's (Fed) tightening bias. This could help push down Japanese Yen yields and serve as a tailwind for the USD/JPY pair amid a bullish trend for the US Dollar (USD). Meanwhile, traders may prefer to stay on the sidelines and wait for the release of the important US Non-Farm Payrolls (NFP) report before making aggressive directional bets on the currency pair. Trade recommendation: Watching the level of 158.60, trading mainly with Buy orders
Long
by Fresh-Forexcast2004
Will History Repeat as Major Currencies Dance Toward Parity?In a dramatic shift that has captured the attention of global financial markets, the euro-dollar relationship stands at a historic crossroads, with leading institutions forecasting potential parity by 2025. This seismic development, triggered by Donald Trump's November election victory and amplified by mounting geopolitical tensions, signals more than just a currency fluctuation—it represents a fundamental realignment of global financial power dynamics. The confluence of diverging monetary policies between the U.S. and Europe and persistent economic challenges in Germany's industrial heartland has created a perfect storm in currency markets. European policymakers face the delicate task of maintaining supportive measures. At the same time, their American counterparts adopt a more cautious stance, setting the stage for what could become a defining moment in modern financial history. This potential currency convergence carries implications far beyond trading desks. It challenges traditional assumptions about economic power structures and reevaluates global investment strategies. As geopolitical tensions escalate and economic indicators paint an increasingly complex picture, market participants must navigate a landscape where historical precedents offer limited guidance. The journey toward potential parity serves as a compelling reminder that in today's interconnected financial world, currency movements reflect not just economic fundamentals but the broader forces reshaping our global order. Conclusion The current landscape presents unprecedented challenges for the EUR/USD pair, driven by economic fundamentals and geopolitical tensions. One significant concern is the potential release of sensitive footage from Israel (by the Israeli National Security Agency (NSA) from Hamas body cameras, containing graphic atrocities from the October 7th incident.), which could threaten European stability. These developments go beyond simple market dynamics and have the potential to reshape the social and political fabric of Europe. Market professionals emphasize the importance of adaptable strategies and the vigilant monitoring of key indicators. Investors must prepare for increased volatility while maintaining strong risk management frameworks. The pressure on the euro-dollar relationship is likely to persist, making strategic positioning and careful market analysis more crucial than ever in navigating these turbulent waters.
Short
by UDIS_View
Natural Gas - Supply and DemandAs previously iterated in my writings on crude oil NYMEX:CL1! here and here , my opinion is that conditions favor a bull market in energy products. Crude Oil has gained a few points since the time of publishing, and Natural Gas NYMEX:NG1! appears poised to follow suit. As seen below, most energy markets ( NYMEX:CL1! , NYMEX:NG1! , ICEEUR:BRN1! , NYMEX:RB1! , NYMEX:MBA1! ) have rallied in the last year. The most active, and volatile of the energy products shown in the above chart is Natural Gas $NYMEX:NG1!. There are many reasons it may have rallied since the 2nd quarter of 2020, such as an energy crisis in Texas, and war in Eastern Europe and the Middle East. Increasing up to 500% at one point in the last 5 years, though the price has backed off we still observe the market making new highs. There are some very serious considerations in oil and gas, which do not appear to have been of any consideration. Just yesterday, US president Joe Biden elected to place a ban on all future leases on offshore drilling operations. Though he has cited a transition to clean energy as a suitable alternative, there is not much reason for markets to believe him. As mentioned, back in 2021 an unexpected cold snap in Texas led to panic in domestic energy markets as generators and suppliers were unable to meet demand. According to statistics published domestically all around the world including the USA, it is indicated that inflation has subsided as central banks lower rates. Yet as we can see, Natural Gas in the US in particular has continued to rally, and what's more the futures curve indicates market participants expect the price to continue to rise into 2027. This is in spite of the increasing strength of the US Dollar TVC:DXY , which may weigh against the price of Natural Gas. www.bruegel.org In Europe, the situation surrounding the availability of energy products may be even more alarming. Ukraine has elected to not negotiate terms for an extension of a natural gas contract with Russia. There are many pipelines from Russia which supply much of Europe with natural gas, both offshore and through Ukraine. Much of which will have passed through Ukraine and Belarus, since the sabotage of the Nordstream pipelines. As such much of Europe's energy in the last couple years has been Suppled by the USA, though a significant sum from Russia has continued to be supplied through Ukraine. Considering that the US has just made the decision to reduce it's future supply of natural gas, it seems unlikely that it will be able to supply Europe at the same price. In terms of future uncertainty, we can also look at Canada. A major supplier of energy products globally, Prime Minister Justin Trudeau has decided to step down, though an election is not slated until October. With Donald Trump taking office in just 13 days, and threatening tariffs, we might anticipate the lack of clear governance over continental trade will have a negative impact on the stability of natural gas markets. In face of volatility and a decreased future demand, North-American as well as European energy markets seem poised to take a strong bullish stance. Besides pipelines, a great deal of import/export in natural gas is done in Liquid Natural Gas (LNG). Due to violence in the Red Sea, carriers of LNG in particular have opted to take the longer route around the horn of Africa. The politics surrounding commercial maritime shipping have become very complicated in the last year, between terrorist attacks, union strikes, blocked shipping lanes and an (allegedly) poor prognosis for the Panama Canal. Which is to express, without bearing too heavy on details of the politics of maritime law, that the future has become uncertain. Since 2022 interest rates have been rising, and as such commercial shipping insurance rates have been rising, war clauses notwithstanding. Since insurance companies are at liberty to play politics, it should leave no doubt in a speculators' mind that they will. Already lobbying efforts have begun to remove EU sanctions on Russian oil exports, for the effect they have had on oceanic insurance. This issue is further discussed in my first post on crude oil. See below the price of Natural gas in the UK over the last year. Natural gas consumption worldwide has been on the rise for the past several decades, as it is sought after as a cleaner and cheaper alternative to crude oil derivatives. It must be considered that beyond supplying energy to the public, this commodity plays an important role in industrial processes and manufacturing. The effect of a reduced supply encompasses a gross majority of the global economy. In fact it is so obvious that the price will rise, the only bear argument I can surmise might be a global conspiracy against energy and the trading of energy products, thus rendering their useless and of little worth. Given the sweeping measures imposed by Biden just 14 days before the end of his presidency, traders should beware of capital controls imposed on these markets. While I am wholly bullish on this market, on every basis from technical to fundamental, it is a SERIOUS risk that trading in these markets will be prohibited through political measures. Sovereign debt is mounting, and inflation threatens to critically exacerbate the issue of interest rates. That being said, markets are markets. Thanks for reading. "It ain't what you don't know that gets you in trouble, it's what you know for sure that just ain't so" -Mark Twain
NYMEX:NG1!Long
by FPS_Denny
MicroStrategy FEAT BTC $500 by 2025 Bitcoin Investment Strategy: MicroStrategy has heavily invested in Bitcoin, making it the largest corporate holder of the cryptocurrency. If Bitcoin's value appreciates significantly, as it has in past cycles, this could directly boost MicroStrategy's stock price due to the large unrealized gains on its balance sheet. Posts on X mention the company's Bitcoin holdings as a major influence on its stock performance. S&P 500 Inclusion: There's speculation that MicroStrategy could be included in the S&P 500, which would likely result in substantial capital inflows from index funds and ETFs. Analysts like Willy Woo have speculated that this could lead to $10-15 billion in inflows, potentially driving the stock price higher. This is discussed in web results where potential S&P 500 inclusion is seen as a catalyst for MSTR to reach $500. Accounting Rule Changes: New accounting standards from the Financial Accounting Standards Board (FASB) effective from 2025 will allow MicroStrategy to report unrealized gains on its Bitcoin holdings, potentially boosting reported earnings and making the stock more attractive to investors. This change could qualify MicroStrategy for the S&P 500 if it reports positive earnings, as noted in several web results. Capital Raising and Shareholder Votes: MicroStrategy plans to raise significant capital for further Bitcoin purchases, with a shareholder vote to increase the number of authorized shares dramatically. This strategy, including the $42 billion capital plan, could fund more Bitcoin acquisition, potentially increasing the value of the company's assets. Discussions on X highlight this as a move that could lead to a significant run-up in stock price. Market Sentiment and Bitcoin Cycles: The stock market's perception of MicroStrategy as a Bitcoin proxy means that bullish sentiment towards Bitcoin often translates into gains for MSTR. If Bitcoin experiences another bull run, as some analysts predict, MicroStrategy's stock could follow suit, especially given its aggressive Bitcoin acquisition strategy. Leverage and Bitcoin Yield: MicroStrategy's use of leverage to increase its Bitcoin per share (BTC Yield) is another factor. By selling shares at a premium over net asset value (NAV) and using the proceeds to buy more Bitcoin, the company can reduce leverage while increasing its Bitcoin holdings per share, which could drive stock price appreciation. This strategy is highlighted in posts on X discussing MicroStrategy's unique approach to Bitcoin investment. Institutional Adoption of Bitcoin: If larger institutions or even governments start adopting Bitcoin as part of their reserves or investment strategy, this could elevate Bitcoin's price, directly benefiting MicroStrategy. There's mention of possible U.S. government involvement with Bitcoin, which could further fuel this scenario.
NASDAQ:MSTRLong
by NYRUNSGLOBAL
Fundamental Market Analysis for January 7, 2024 USDJPYThe USD/JPY pair is fluctuating near familiar levels, having started the new trading week almost unchanged. The pair is near recent highs as investors await decisions from the Federal Reserve (Fed) and the Bank of Japan (BoJ). Both central banks are expected to make new moves on interest rates in 2025, with the Fed targeting a rate cut and the BoJ beginning to raise rates. Bank of Japan Governor Kazuo Ueda recently reiterated the BOJ's commitment to achieving a neutral rate. What makes the Bank of Japan unique among the other major central banks in the developed world is its longstanding efforts to stimulate inflation rather than curb it. Because the Bank of Japan's discount rates are well below the global average, the Japanese yen has had a tough turnaround in 2024 as the rate differential has widened. Since the natural rate of interest is likely much higher than current BoJ discount rates, BoJ Governor Ueda and company will have to start adjusting rates upward at some point, or they risk sending the Japanese economy into another tailspin. Wednesday will bring the latest Fed meeting minutes down on traders, but the key document this week will be Friday's US Non-Farm Payrolls (NFP) report. As half of the Fed's mandate includes full employment, markets will be watching this week's US employment data with heightened interest. Trade recommendation: Watching the level of 156.00, trading mainly with Sell orders
Short
by Fresh-Forexcast2004
When to trade Dollars ($) to Euro's (€) and the other way aroundWhen exchanging dollars (USDT or USDC) for euros, it's best to do so when the dollar is strong against the euro, meaning you’ll get more euros for your dollars. The same goes for the reverse—if the euro is stronger, it's a good time to exchange euros for dollars (or stablecoins like USDT and USDC). For crypto, since stablecoins like USDT and USDC are pegged to the dollar, their value closely follows the dollar's movements. Pay attention to factors such as interest rates, inflation, and global economic events that affect the dollar's strength. If you're holding USDT or USDC and believe the dollar will weaken, converting to euros or another currency could be a good move. Similarly, if the euro weakens, you might exchange euros for dollars or stablecoins to benefit from a stronger dollar.
by Crypto_Warrrior
Euro / Dollar long week. Market Maker buy modelAnd so, we see that there was a reaction from the weekly FVG that was created back in 2022. Liquidity was not removed and early lows have been created (this may be for the next invasion and filling of the inefficiency of the FVG) So far we see support on the 4H BISI that was created from the weekly BISI, it was Friday, New York (which is good for a reversal for the model) All 4H SIBI hourly inefficiencies are filled and respect 0.5 quadrant The wicks are causing damage, the bodies are telling the truth. While the nearest liquidity is formed on the weekly sibi, which is the initial model of the market maker for buying to this level. Let's see what candles will be formed. + we see on DXY touch Month Sibi High. its good for long forex market + candle formed Discount area
Long
by Jojo2075
GOLD (XAUUSD) ANALYSISFrom the updated chart, here's a refined **analysis and target projection**: --- ### **Analysis**: 1. **Current Price**: - Gold is trading around **2645.59**, showing a bullish attempt to break above recent resistance levels. 2. **Demand Zone**: - A possible higher low (HL) formation is near the **2620–2630 zone**, indicating strong buyer interest. If this level holds, the price may continue its upward movement. 3. **Resistance Areas**: - The next immediate resistance zone lies between **2650–2660**, where a minor supply zone exists. - If this zone breaks, the price may target the next significant supply level around **2680–2700**, as suggested by the higher green zone. 4. **Bullish Continuation**: - The drawn purple arrow indicates a potential retracement into the support zone, likely around **2635–2640**, before continuing the bullish trend. - The market structure remains bullish, with higher highs (HH) and higher lows (HL). --- ### **Targets**: 1. **First Target (Short-Term)**: **2650–2660** - A logical level for partial profit-taking or initial resistance. 2. **Second Target (Mid-Term)**: **2680–2700** - A higher supply zone, with the potential to act as a significant resistance level. --- ### **Invalidation**: - A break below **2620** would invalidate the bullish setup and could lead to further downside toward **2600 or lower**.
CAPITALCOM:GOLDLong
by TRADE_CENTER_1
Mighty Dollar Eyes Further GainsThe US Dollar Index (DXY) commenced the new year on a strong note, breaking out of its consolidation phase and surging toward the 109.50 level on January 2. ◉ Technical Observations ● The daily candle close on Friday formed an inside bar bearish candle, indicating a potential pullback in the week ahead. ● Immediate support levels are situated between 107.50 and 107.00. ◉ Market Outlook and Key Events The US jobs report comes out on Friday and will be the main focus for the market this week. A strong jobs report could strengthen the US dollar, affecting emerging markets and commodities.
TVC:DXYLong
by NaranjCapital
1
DXY Continues bullish momentum from 108.600For the DXY, I anticipate a corrective move, as the price has recently broken structure to the upside. This break has created new demand zones, which we can expect to act as strong support, allowing bullish momentum to continue. This week, my focus will be on the 8-hour demand zone around 108.600. If the price mitigates this zone, I’ll look for lower time-frame confirmation to enter a trade. My target will be the 8-hour supply zone above, where I anticipate some bearish pressure may emerge. However, if the price moves lower and breaches the 8-hour demand zone, I’ll shift my attention to the extreme 5-hour demand zone for a potential buying opportunity, aligning with the overall bullish trend. Let’s stay sharp and make the most of this week. Let’s crush Q1!
TVC:DXYLong
by Hassan_fx
1
EURUSD 5/1/25Heading into the First Trading Week of the Year We’re ready to dominate as always, with Orion leading the way and providing a clear bias. This week, we continue with our bearish outlook, looking to trade from the highs into the lows outlined here, with the target clearly defined. Before diving in headfirst, let’s cover a few key points: There’s currently a large gap between the highs and the current price. Based on this, we need to be mindful of the following scenarios: A short-term high could form before reaching the main highs shown here. A new low might be created, giving us an additional target low. These scenarios suggest we could see some form of manipulation before a move higher. For example, the price could create new highs, sweep them, and then form a new short-term low. While this wouldn’t invalidate the larger bearish move, it could shake out many lower time frame traders. Please also take note of the heavy liquid we have stored above the current highs we are looking at. Trade safe and stick to your plan.
by PipSurfingSociety
The Truth About Brazil’s Economy: Is the Real Near R$6.63?It’s becoming clear that the market is no longer buying into the government’s optimistic narrative. The promise to eliminate the fiscal deficit, for example, has already lost momentum. What the market sees, in practice, is a series of populist measures and little fiscal responsibility. The exchange rate reflects this reality. The real, already weakened, remains highly vulnerable to any internal shocks — whether it's political noise or disappointing economic data. 📉 Why do I believe the dollar could reach R$ 6.63? 1️⃣ Fiscal Situation Weighs Heavily Brazil is spending more than it collects, and public accounts remain under pressure. The market no longer believes that the government will achieve balance without significant spending cuts. Promises alone don’t pay the bills — and anyone involved in currency trading knows that. 2️⃣ The Dollar Remains Strong Abroad In the U.S., the Federal Reserve continues its firm stance on fighting inflation. This strengthens the dollar globally, which in turn puts additional pressure on emerging market currencies — and the real is no exception. 3️⃣ Weak Economic Growth Without a Solid Foundation Even with the growth Brazil has seen, it becomes irrelevant when viewed in the context of irresponsible fiscal management. Instead of being celebrated, this growth raises questions about its sustainability. The market knows that growth without structural adjustments is unsustainable — and Brazil hasn’t shown any commitment to addressing its weaknesses. The increase in GDP ends up overshadowed by populist measures and a lack of spending cuts. Without fiscal balance, growth turns into a house of cards that collapses at the first sign of instability. For investors, the risk of holding positions in the real remains high, especially as necessary reforms continue to be postponed. The Result? The market remains cautious, pricing in uncertainty and distrust. 📢 Disclaimer: The opinions expressed here are for informational purposes only and reflect personal market analyses. They do not constitute investment advice. The currency market is volatile and carries significant risks. Always consider your investor profile and seek professional guidance before making any financial decisions.
Long
by Igor-Silva
1