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IC Markets Europe Fundamental Forecast | 28 February 2024
IC Markets Europe Fundamental Forecast | 28 February 2024

IC Markets Europe Fundamental Forecast | 28 February 2024

374729   February 28, 2024 20:05   ICMarkets   Market News  

What happened in the Asia session?

As widely expected, the RBNZ kept its official cash rate (OCR) on hold at 5.5% for the fifth consecutive board meeting. Although core inflation and inflation expectations had both eased over the past couple of quarters, the RBNZ was aware that headline inflation remains well above their target of 1% to 3%. The board stated that the OCR needs to stay at a restrictive level for some time while also noting that the economic outlook with top trading partner China remains historically weak. The Kiwi tumbled hard following the release of the monetary policy statement, crashing as much as 70 pips in the immediate aftermath.

Australia’s monthly CPI remained unchanged at 3.4% YoY for the month of January which marks the lowest reading since November 2021 as transport prices eased further due to lower automotive fuel costs. The latest CPI figure was also lower than the estimate of 3.6% which caused the Aussie to sell-off strongly following this news release – it tumbled as low as 0.6516, losing almost 30 pips in the process.

What does it mean for the Europe & US sessions?

The preliminary estimate for GDP growth in the first quarter of 2024 is due for release today with economic activity forecasted to grow 3.3% on an annualised basis. Economic growth has climbed steadily in the US over the last four quarters, highlighting the resilience in GDP output despite elevated interest rates. Should the preliminary estimate print higher than the forecast of 3.3%, it could create strong demand for the dollar.

The Dollar Index (DXY)

Key news events today

GDP (1:30 pm GMT)

What can we expect from DXY today?

The preliminary estimate for GDP growth in the first quarter of 2024 is due for release today with economic activity forecasted to grow 3.3% on an annualised basis. Economic growth has climbed steadily in the US over the last four quarters, highlighting the resilience in GDP output despite elevated interest rates. Should the preliminary estimate print higher than the forecast of 3.3%, it could create strong demand for the dollar.

Central Bank Notes:

  • The Federal Funds Rate target range remained unchanged at 5.25% to 5.50% for the third meeting in a row.
  • The Committee seeks to achieve maximum employment and inflation at the rate of 2.0% over the longer run.
  • Recent indicators suggest that economic activity has been expanding at a solid pace.
  • Job gains have moderated since early last year but remain strong, and the unemployment rate has remained low.
  • Inflation has eased over the past year but remains elevated.
  • In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2.0%.
  • In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans.
  • Next meeting runs from 19 to 30 March 2024.

Next 24 Hours Bias

Weak Bullish


Gold (XAU)

Key news events today

GDP (1:30 pm GMT)

What can we expect from Gold today?

The preliminary estimate for GDP growth in the first quarter of 2024 is due for release today with economic activity forecasted to grow 3.3% on an annualised basis. Economic growth has climbed steadily in the US over the last four quarters, highlighting the resilience in GDP output despite elevated interest rates. Should the preliminary estimate print higher than the forecast of 3.3%, it could create strong demand for the dollar and thus push down gold prices.

Next 24 Hours Bias

Weak Bearish


The Australian Dollar (AUD)

Key news events today

CPI (12:30 am GMT)

What can we expect from AUD today?

Australia’s monthly CPI remained unchanged at 3.4% YoY for the month of January which marks the lowest reading since November 2021 as transport prices eased further due to lower automotive fuel costs. The latest CPI figure was also lower than the estimate of 3.6% which caused the Aussie to sell-off strongly following this news release – it tumbled as low as 0.6516, losing almost 30 pips in the process.

Central Bank Notes:

  • The RBA kept the cash rate target unchanged at 4.35%, marking the sixth pause out of the last seven board meetings.
  • Inflation continues to ease in the December quarter but remains high at 4.1% YoY.
  • The central forecasts are for inflation to return to the target range of 2 to 3% in 2025, and to the midpoint in 2026.
  • The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe will depend upon the data and the evolving assessment of risks, and a further increase in interest rates cannot be ruled out.
  • Next meeting is on 19 March 2024.

Next 24 Hours Bias

Strong Bearish


The Kiwi Dollar (NZD)

Key news events today

RBNZ Monetary Policy Statement (1:00 am GMT)

RBNZ Press Conference (2:00 am GMT)

What can we expect from NZD today?

As widely expected, the RBNZ kept its official cash rate (OCR) on hold at 5.5% for the fifth consecutive board meeting. Although core inflation and inflation expectations had both eased over the past couple of quarters, the RBNZ was aware that headline inflation remains well above their target of 1% to 3%. The board stated that the OCR needs to stay at a restrictive level for some time while also noting that the economic outlook with top trading partner China remains historically weak. The Kiwi tumbled hard following the release of the monetary policy statement, crashing as much as 70 pips in the immediate aftermath.

Central Bank Notes:

  • The Monetary Policy Committee kept the OCR unchanged at 5.50% for the fourth meeting in a row.
  • The Committee is confident that the current level of the OCR is restricting demand. However, ongoing excess demand and inflationary pressures are of concern, given the elevated level of core inflation.
  • If inflationary pressures were to be stronger than anticipated, the OCR would likely need to increase further.
  • The Committee agreed that interest rates will need to remain at a restrictive level for a sustained period of time, so that consumer price inflation returns to target and to support maximum sustainable employment.
  • Next meeting is on 28 February 2024.

Next 24 Hours Bias

Strong Bearish


The Japanese Yen (JPY)

Key news events today

No key news events.

What can we expect from JPY today?

Demand between the Japanese and the dollar has been somewhat even causing USD/JPY to range approximately between 149.80 and 150.90 since mid-February. With no major catalyst for either currency thus far, this currency pair is likely to continue trading within this range.

Central Bank Notes:

  • The Bank will continue with Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control (YCC), aiming to achieve the price stability target of 2.0%, as long as it is necessary for maintaining that target in a sustainable and stable manner.
  • The Bank of Japan decided on the following measures:
  • YCC: Negative interest rate of -0.1% on policy-rate balances and purchase of Japanese government bonds to keep 10-year JGB yields at around 0% while regarding the upper bound of 1.0% for 10-year JGB yields as a reference in its market operations.
  • Inflation expectations are expected to rise moderately toward the end of the projection period, with continued improvement in the output gap and changes in firms’ wage- and price-setting behaviour and in labour-management wage negotiations.
  • Japan’s economy is likely to continue recovering moderately for the time being, supported by factors such as the materialization of pent-up demand, although it is expected to be under downward pressure stemming from a slowdown in the pace of recovery in overseas economies.
  • Next meeting is on 19 March 2024.

Next 24 Hours Bias

Weak Bullish


The Euro (EUR)

Key news events today

No key news events.

What can we expect from EUR today?

The Euro dropped as low as 1.0833 overnight before rebounding off this level to rise towards 1.0860. However, it is now falling towards 1.0830 once more at the beginning of the Asia session and could remain under pressure today.

Central Bank Notes:

  • The ECB kept the three key interest rates unchanged for a third consecutive meeting, keeping the main refinancing rate on hold at 4.50%.
  • The incoming information has broadly confirmed its previous assessment of the medium-term inflation outlook.
  • Aside from an energy-related upward base effect on headline inflation, the declining trend in underlying inflation has continued, and the past interest rate increases keep being transmitted forcefully into financing conditions.
  • Tight financing conditions are dampening demand, and this is helping to push down inflation.
  • The Governing Council will continue to follow a data-dependent approach to determining the appropriate level and duration of restriction.
  • Next meeting is on 7 March 2024.

Next 24 Hours Bias

Weak Bearish


The Swiss Franc (CHF)

Key news events today

No major news events.

What can we expect from CHF today?

Demand between the Swiss franc and the dollar has been somewhat even causing USD/CFH to range approximately between 0.8780 and 0.8820 since last Friday. With no major catalyst for either currency thus far, this currency pair is likely to continue trading within this range.

 Central Bank Notes:

  • The SNB kept the policy rate unchanged at 1.75% for a second consecutive meeting in December.
  • The inflation forecast puts average annual inflation at 2.1% for 2023, 1.9% for

2024 and 1.6% for 2025.

  • GDP growth is likely to be weak in the coming quarters; subdued demand from abroad and the tighter financing conditions are having a dampening effect.
  • Switzerland’s GDP is likely to grow by around 1% this year. For 2024, the SNB currently expects growth of between 0.5% and 1%.
  • Next meeting is on 21 March 2024.

Next 24 Hours Bias

Weak Bullish


The Pound (GBP)

Key news events today

No major news events.

What can we expect from GBP today?

The Pound dipped as low as 1.2660 overnight before rebounding off this level to hit 1.2690. However, it is now falling towards 1.2660 once more at the beginning of the Asia session and could remain under pressure today.

Central Bank Notes:

  • The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 6-to-3 to maintain its Official Bank Rate at 5.25% for the fourth consecutive meeting.
  • Two members preferred to increase the Bank Rate by 0.25% to 5.50% while one member preferred to reduce Bank Rate by 0.25% to 5.00%.
  • CPI inflation remains well above the 2% target, with twelve-month CPI inflation increasing from 3.9% in November to 4.0% in December 2023 while wage growth has eased across a number of measures and is projected to decline further in coming quarters, although still elevated.
  • This downside news has been broad-based, reflecting lower fuel, core goods and services price inflation.
  • CPI inflation is projected to be 2.3% in two years’ time and 1.9% in three years.
  • Next meeting is on 21 March 2024.

Next 24 Hours Bias

Medium Bearish


The Canadian Dollar (CAD)

Key news events today

No major news events.

What can we expect from CAD today?

The Loonie weakened overnight causing USD/CAD to hit a high of 1.3540 before pulling back towards 1.3515 by the end of the US session. This currency pair was rising once again towards 1.3540 as Asian markets came online and could continue to climb higher today.

Central Bank Notes:

  • The Bank of Canada held its target for the overnight rate at 5.0% for the fourth meeting in a row while continuing its policy of quantitative tightening.
  • Canada’s economy has stalled since the middle of 2023 with real GDP forecasted to grow 0.8% in 2024 and 2.4% in 2025.
  • The slowdown in demand is reducing price pressures in a broader number of CPI components, with CPI inflation expected to remain close to 3% in the first half of 2024 before gradually easing, returning to the target of 2% in 2025.
  • The Governing Council is still concerned about risks to the outlook for inflation, particularly the persistence in underlying inflation, and wants to see further and sustained easing in core inflation and continues to focus on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour.
  • Next meeting is on 10 April 2024.

Next 24 Hours Bias

Medium Bullish


Oil

Key news events today

EIA Crude Oil Inventories (3:30 pm GMT)

What can we expect from Oil today?

API stockpiles increased by 8.4M barrels to register the third consecutive week of large inventory builds which typically signal weaker demand for crude oil in the US. This latest figure was also much higher than the forecast of a 1.5M-increase. Despite the stronger-than-expected build, crude oil prices rose overnight with WTI oil briefly climbing above $79 per barrel before dipping under this level as Asian markets came online. Should EIA inventories also experience a higher-than-anticipated build, it could cap the recent gains in crude.

Next 24 Hours Bias

Weak Bearish

Full Article

Wednesday 28nd February 2024: Technical Outlook and Review

Wednesday 28nd February 2024: Technical Outlook and Review

374607   February 28, 2024 12:56   ICMarkets   Market News  

DXY:

The DXY chart currently exhibits a bearish momentum. However, price could rise towards the 1st resistance before resuming a potential bearish continuation towards the 1st support.

The 1st resistance level at 104.09 is identified as an overlap resistance that aligns close to the 38.20% Fibonacci Retracement level. Higher up, the 2nd resistance level at 104.61 is marked as a pullback resistance that aligns with the 78.60% Fibonacci Retracement level, further highlighting its importance as a potential resistance zone.

To the downside, the intermediate support level at 103.71 is identified as an overlap support while the 1st support level at 103.43 is noted as a pullback. Further below, the 2nd support level at 102.94 is also marked as a pullback support, reinforcing its significance as a key support level.

EUR/USD:

The EUR/USD chart currently exhibits an overall bullish momentum. However, there is a potential scenario for price to fall towards the 1st support before resuming the uptrend.

The 1st support level at 1.0813 is identified as an overlap support that aligns with the 38.20% Fibonacci Retracement level. Further below, the 2nd support level at 1.0786 is marked as a pullback support that aligns with the 50.00% Fibonacci Retracement level, further emphasizing its importance as a potential support zone.

To the upside, the 1st resistance level at 1.0887 is identified as a pullback resistance. Higher up, the 2nd resistance level at 1.0926 is noted as an overlap resistance that aligns close to the 161.80% Fibonacci Extension level, further highlighting its importance as a potential resistance point.

EUR/JPY:

The EUR/JPY chart currently exhibits an overall bullish momentum. However, there is a potential scenario for price to fall towards the intermediate support before resuming the uptrend.

The intermediate support level at 162.64 is identified as a pullback support while the 1st support level at 161.85 is also noted as a pullback support. Further below, the 2nd support level at 160.91 is marked as an overlap support that aligns with the 50.00% Fibonacci Retracement level, further emphasizing its importance as a potential support zone.

To the upside, the 1st resistance level at 163.72 is identified as a swing-high resistance. Higher up, the 2nd resistance level at 164.26 is also noted as a swing-high resistance that aligns with the 161.80% Fibonacci Extension level, further highlighting its importance as a potential resistance point.

EUR/GBP:

The EUR/GBP chart currently exhibits a neutral bias. In this context, there is a potential scenario for price to fluctuate between the 1st support and the 1st resistance.

The 1st support level at 0.8547 is identified as an overlap support. Further below, the 2nd support level at 0.8525 is marked as a pullback support that aligns with the 61.80% Fibonacci Retracement level, further emphasizing its importance as a potential support zone.

To the upside, the 1st resistance level at 0.8572 is identified as a pullback resistance. Higher up, the 2nd resistance level at 0.8591 is noted as an overlap resistance that aligns with the 127.20% Fibonacci Extension level, further highlighting its importance as a potential resistance point.

GBP/USD:

The GBP/USD chart currently exhibits an overall bullish momentum. However, there is a potential scenario for price to fall towards the 1st support before resuming the uptrend.

The 1st support level at 1.2641 is identified as an overlap support that aligns with the 38.20% Fibonacci Retracement level. Further below, the 2nd support level at 1.2573 is also marked as an overlap support that aligns with the 78.60% Fibonacci Retracement level, further emphasizing its importance as a potential support zone.

To the upside, the 1st resistance level at 1.2701 is identified as a pullback resistance. Higher up, the 2nd resistance level at 1.2757 is also noted as a pullback resistance, further highlighting its importance as a potential resistance point.

.

GBP/JPY:

The GBP/JPY chart currently exhibits an overall bullish momentum. However, there is a potential scenario for price to fall towards the intermediate support before resuming the uptrend.

The intermediate support level at 190.40 is identified as a pullback support while the 1st support level at 189.96 is noted as an overlap support that aligns with the 23.60% Fibonacci Retracement level. Further below, the 2nd support level at 188.90 is also marked as an overlap support that aligns with the 38.20% Fibonacci Retracement level, further emphasizing its importance as a potential support zone.

To the upside, the 1st resistance level at 191.25 is identified as a pullback resistance that aligns with a confluence of Fibonacci levels i.e. the 61.80% Projection and the 161.80% Extension. Higher up, the 2nd resistance level at 193.10 is noted as a resistance that aligns with the 78.60% Fibonacci Projection, further highlighting its importance as a potential resistance point.

USD/CHF:

The USD/CHF chart currently exhibits a neutral bias. In this context, there is a potential scenario for price to fluctuate between the 1st support and the 1st resistance.

The 1st support level at 0.8762 is identified as an overlap support that aligns with the 38.20% Fibonacci Retracement level. Further below, the 2nd support level at 0.8727 is also marked as an overlap support that aligns close to the 50.00% Fibonacci Retracement level, further emphasizing its importance as a potential support zone.

To the upside, the 1st resistance level at 0.8816 is identified as a pullback resistance. Higher up, the 2nd resistance level at 0.8856 is noted as an overlap resistance, further highlighting its importance as a potential resistance point.

USD/JPY:

The USD/JPY chart currently exhibits a neutral bias. In this context, there is a potential scenario for price to fluctuate between the 1st support and the 1st resistance.

The 1st support level at 149.62 is identified as an overlap support that aligns with the 23.60% Fibonacci Retracement level. Further below, the 2nd support level at 148.81 is also marked as an overlap support that aligns close to the 38.20% Fibonacci Retracement level, further emphasizing its importance as a potential support zone.

To the upside, the 1st resistance level at 150.78 is identified as a pullback resistance. Higher up, the 2nd resistance level at 151.40 is also noted as a pullback resistance that aligns close to the 61.80% Fibonacci Projection level, further highlighting its importance as a potential resistance point.

.

USD/CAD:

The USD/CAD chart currently exhibits an overall bullish momentum. In this context, there is a potential scenario for price to break above the 1st resistance and rise towards the 2nd resistance.

The 1st resistance level at 1.3531 is identified as an overlap resistance. Higher up, the 2nd resistance level at 1.3569 is marked as a pullback resistance, further highlighting its importance as a potential resistance zone.

To the downside, the 1st support level at 1.3451 is identified as an overlap support. Further below, the 2nd support level at 1.3373 is marked as a pullback support, reinforcing its significance as a key support level.

AUD/USD:

The AUD/USD chart currently exhibits an overall bearish momentum. In this context, there is a potential scenario for price to break below the 1st support and drop towards the 2nd support.

The 1st support level at 0.6522 is identified as an overlap support that aligns with the 50.00% Fibonacci Retracement level. Further below, the 2nd support level at 0.6501 is also marked as an overlap support that aligns with the 61.80% Fibonacci Retracement levels, further emphasizing its importance as a potential support zone.

To the upside, the 1st resistance level at 0.6553 is identified as an overlap resistance. Higher up, the 2nd resistance level at 0.6579 is noted as a pullback resistance, further highlighting its importance as a potential resistance point.

NZD/USD

The NZD/USD chart currently exhibits an overall bearish momentum. In this context, there is a potential scenario for price to break below the 1st support and drop towards the 2nd support.

The 1st support level at 0.6116 is identified as an overlap support that aligns with the 61.80% Fibonacci Retracement level. Further below, the 2nd support level at 0.6088 is also marked as an overlap support that aligns with the 78.60% Fibonacci Retracement level, further emphasizing its importance as a potential support zone.

To the upside, the 1st resistance level at 0.6159 is identified as an overlap resistance. Higher up, the 2nd resistance level at 0.6270 is also noted as an overlap resistance, further highlighting its importance as a potential resistance point.

DJ30:

The DJ30 chart currently exhibits an overall bullish momentum. In this context, there is a potential scenario for price to make a bullish continuation towards the 1st resistance.

The 1st resistance level at 39,186.86 is identified as a pullback resistance. Higher up, the 2nd resistance level at 39,496.81 is noted as a resistance that aligns with the 78.60% Fibonacci Projection level, adding to its significance as a potential barrier to further bullish movement.

On the support side, the 1st support level at 38,916.08 is identified as an overlap support that aligns close to the 38.20% Fibonacci Retracement level. Further below, the 2nd support at 38,513.54 is marked as a pullback support that aligns close to the 78.60% Fibonacci Retracement level, further reinforcing its significance as a potential level of support.

GER40:

The GER40 chart currently demonstrates an overall bullish momentum, suggesting a potential continuation of the upward trend towards the 1st resistance.

The 1st resistance level at 17,834.20 is identified as a resistance that aligns with the 61.80% Fibonacci Projection level. Higher up, the 2nd resistance level at 18,244.54 is marked as a resistance that aligns with the 78.60% Fibonacci Projection level, adding to its significance as a potential barrier to further bullish movement.

On the support side, the intermediate support level at 17,372.90 is identified as a pullback support that aligns with the 23.60% Fibonacci Retracement level while the 1st support level at 17,179.53 is also marked as a pullback support that aligns with the 50.00% Fibonacci Retracement level. Additionally, the 2nd support level at 17,048.24 is noted as an overlap support, further reinforcing its importance as a potential area of support.

US500:

The US500 chart currently demonstrates an overall bullish momentum, suggesting a potential continuation of the upward trend towards the 1st resistance.

The 1st resistance level at 5,101.08 is identified as a pullback resistance that aligns with the 161.80% Fibonacci Extension level. Higher up, the 2nd resistance level at 5,129.17 is noted as a resistance that aligns with a confluence of Fibonacci levels i.e. the 61.80% Projection and the 161.80% Extension, adding to its significance as a potential barrier to further bullish movement.

On the support side, the 1st support level at 5,047.15 is identified as a pullback support that aligns with the 38.20% Fibonacci Retracement level. Further below, the 2nd support level at 4,950.86 is also marked as a pullback support, further reinforcing its significance as a potential area of support.

BTC/USD:

The BTC/USD chart currently exhibits an overall bullish momentum. In this context, there is a potential scenario for price to make a bullish continuation towards the 1st resistance.

The 1st resistance level at 58,580.44 is identified as a pullback resistance. Higher up, the 2nd resistance level at 60,670.96 is noted as an overlap resistance, adding to its significance as a potential barrier to further bullish movement.

On the support side, the 1st support level at 52,866.49 is identified as a pullback support that aligns with the 23.60% Fibonacci Retracement level. Further below, the 2nd support at 50,374.41 is marked as an overlap support that aligns with the 38.20% Fibonacci Retracement level, further reinforcing its significance as a potential level of support.

ETH/USD:

The ETH/USD chart currently exhibits an overall bullish momentum. In this context, there is a potential scenario for price to make a bullish continuation towards the 1st resistance.

The 1st resistance level at 3,279.62 is identified as a pullback resistance. Higher up, the 2nd resistance level at 3,431.97 is also noted as a pullback resistance, adding to its significance as a potential barrier to further bullish movement.

On the support side, the 1st support level at 3,016.64 is identified as a pullback support that aligns with the 23.60% Fibonacci Retracement level. Further below, the 2nd support at 2,847.25 is marked as an overlap support that aligns with the 38.20% Fibonacci Retracement level, further reinforcing its importance as a potential area of support.

WTI/USD:

The WTI (West Texas Intermediate) chart currently exhibits a neutral bias. In this context, there is a potential scenario for price to fluctuate between the 1st support and the 1st resistance.

The 1st support level at 76.17 is identified as a pullback support that aligns with the 38.20% Fibonacci Retracement level. Further below, the 2nd support level at 75.16 is also marked as a pullback support that aligns with the 50.00% Fibonacci Retracement level, reinforcing its significance as a key support level.

To the upside, the 1st resistance level at 79.07 is identified as a multi-swing-high resistance. Higher up, the 2nd resistance level at 80.79 is marked as a pullback resistance, further highlighting its importance as a potential resistance zone.

XAU/USD (GOLD):

The XAUUSD (Gold/USD) chart currently exhibits an overall bullish momentum. In this context, there is a potential scenario for price to make a bullish continuation towards the 1st resistance.

The 1st resistance level at 2,044.62 is identified as a pullback resistance. Higher up, the 2nd resistance level at 2,055.91 is also noted as a pullback resistance, adding to its significance as a potential barrier to further bullish movement.

On the support side, the 1st support level at 2,015.56 is identified as a pullback support that aligns close to the 50.00% Fibonacci Retracement level. Further below, the 2nd support at 2,005.82 is marked as an overlap support that aligns with the 61.80% Fibonacci Retracement level, further reinforcing its importance as a potential area of support.

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Full Article

IC Markets Asia Fundamental Forecast | 28 February 2024
IC Markets Asia Fundamental Forecast | 28 February 2024

IC Markets Asia Fundamental Forecast | 28 February 2024

374601   February 28, 2024 12:26   ICMarkets   Market News  

What happened in the US session?

Orders for durable goods slumped 6.1% MoM in January which was deeper than the estimate of a 4.5%-decline. January’s reading marked the largest monthly drop since April 2020 which was primarily driven by transportation equipment as it fell 16.2% MoM. Following which, the Conference Board’s latest survey on consumer confidence showed this index retreating in February as it fell from 110.9 in the previous month to 106.7. This decline was broad-based, affecting almost all income groups, reflecting the persistent uncertainty about the US economy. Despite the downbeat data as seen above, the dollar index (DXY) rose higher overnight climbing from 103.65 to as high as 103.92.

What does it mean for the Asia Session?

The RBNZ is widely expected to maintain its official cash rate on hold at 5.5% as inflation in New Zealand remains well above the central bank’s target of 2%. Both the headline and core CPI readings for the fourth quarter of 2023 are at 4.7% and 4..4% respectively on an annualised basis. Should the statement and the press conference by Governor Adrian Orr communicate a hawkish tone, it could potentially function as a bullish catalyst for the Kiwi.

The Dollar Index (DXY)

Key news events today

GDP (1:30 pm GMT)

What can we expect from DXY today?

The preliminary estimate for GDP growth in the first quarter of 2024 is due for release today with economic activity forecasted to grow 3.3% on an annualised basis. Economic growth has climbed steadily in the US over the last four quarters, highlighting the resilience in GDP output despite elevated interest rates. Should the preliminary estimate print higher than the forecast of 3.3%, it could create strong demand for the dollar.

Central Bank Notes:

  • The Federal Funds Rate target range remained unchanged at 5.25% to 5.50% for the fourth meeting in a row.
  • The Committee seeks to achieve maximum employment and inflation at the rate of 2.0% over the longer run.
  • Recent indicators suggest that economic activity has been expanding at a solid pace.
  • Job gains have moderated since early last year but remain strong, and the unemployment rate has remained low.
  • Inflation has eased over the past year but remains elevated.
  • In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2.0%.
  • In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans.
  • Next meeting runs from 19 to 20 March 2024.

Next 24 Hours Bias

Weak Bullish


Gold (XAU)

Key news events today

GDP (1:30 pm GMT)

What can we expect from Gold today?

The preliminary estimate for GDP growth in the first quarter of 2024 is due for release today with economic activity forecasted to grow 3.3% on an annualised basis. Economic growth has climbed steadily in the US over the last four quarters, highlighting the resilience in GDP output despite elevated interest rates. Should the preliminary estimate print higher than the forecast of 3.3%, it could create strong demand for the dollar and thus push down gold prices.

Next 24 Hours Bias

Weak Bullish


The Australian Dollar (AUD)

Key news events today

CPI (12:30 am GMT)

What can we expect from AUD today?

Inflation in Australia has moderated lower over the last four quarters but remains well above the RBA’s inflation target of 2%. The headline and core CPI readings for the fourth quarter of 2023 stand at 4.1% and 4.2% respectively on an annualised basis. Meanwhile, the monthly CPI indicator eased to 3.4% in December 2023 on an annualised basis but the estimate of 3.6% for January points to a re-acceleration in inflationary pressures. Should the result come in hotter than expected, it is likely to cause the Aussie to surge during the Asia session.

Central Bank Notes:

  • The RBA kept the cash rate target unchanged at 4.35%, marking the sixth pause out of the last seven board meetings.
  • Inflation continues to ease in the December quarter but remains high at 4.1% YoY.
  • The central forecasts are for inflation to return to the target range of 2 to 3% in 2025, and to the midpoint in 2026.
  • The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe will depend upon the data and the evolving assessment of risks, and a further increase in interest rates cannot be ruled out.
  • Next meeting is on 19 March 2024.

Next 24 Hours Bias

Medium Bearish


The Kiwi Dollar (NZD)

Key news events today

RBNZ Monetary Policy Statement (1:00 am GMT)

RBNZ Press Conference (2:00 am GMT)

What can we expect from NZD today?

The RBNZ is widely expected to maintain its official cash rate on hold at 5.5% as inflation in New Zealand remains well above the central bank’s target of 2%. Both the headline and core CPI readings for the fourth quarter of 2023 are at 4.7% and 4..4% respectively on an annualised basis. Should the statement and the press conference by Governor Adrian Orr communicate a hawkish tone, it could potentially function as a bullish catalyst for the Kiwi.

Central Bank Notes:

  • The Monetary Policy Committee kept the OCR unchanged at 5.50% for the fourth meeting in a row.
  • The Committee is confident that the current level of the OCR is restricting demand. However, ongoing excess demand and inflationary pressures are of concern, given the elevated level of core inflation.
  • If inflationary pressures were to be stronger than anticipated, the OCR would likely need to increase further.
  • The Committee agreed that interest rates will need to remain at a restrictive level for a sustained period of time, so that consumer price inflation returns to target and to support maximum sustainable employment.
  • Next meeting is on 28 February 2024.

Next 24 Hours Bias

Strong Bearish


The Japanese Yen (JPY)

Key news events today

No key news events.

What can we expect from JPY today?

Demand between the Japanese and the dollar has been somewhat even causing USD/JPY to range approximately between 149.80 and 150.90 since mid-February. With no major catalyst for either currency thus far, this currency pair is likely to continue trading within this range.

Central Bank Notes:

  • The Bank will continue with Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control (YCC), aiming to achieve the price stability target of 2.0%, as long as it is necessary for maintaining that target in a sustainable and stable manner.
  • The Bank of Japan decided on the following measures:
  • YCC: Negative interest rate of -0.1% on policy-rate balances and purchase of Japanese government bonds to keep 10-year JGB yields at around 0% while regarding the upper bound of 1.0% for 10-year JGB yields as a reference in its market operations.
  • Inflation expectations are expected to rise moderately toward the end of the projection period, with continued improvement in the output gap and changes in firms’ wage- and price-setting behaviour and in labour-management wage negotiations.
  • Japan’s economy is likely to continue recovering moderately for the time being, supported by factors such as the materialization of pent-up demand, although it is expected to be under downward pressure stemming from a slowdown in the pace of recovery in overseas economies.
  • Next meeting is on 19 March 2024.

Next 24 Hours Bias

Weak Bearish


The Euro (EUR)

Key news events today

No key news events.

What can we expect from EUR today?

The Euro dropped as low as 1.0833 overnight before rebounding off this level to rise towards 1.0860. However, it is now falling towards 1.0830 once more at the beginning of the Asia session and could remain under pressure today.

Central Bank Notes:

  • The ECB kept the three key interest rates unchanged for a third consecutive meeting, keeping the main refinancing rate on hold at 4.50%.
  • The incoming information has broadly confirmed its previous assessment of the medium-term inflation outlook.
  • Aside from an energy-related upward base effect on headline inflation, the declining trend in underlying inflation has continued, and the past interest rate increases keep being transmitted forcefully into financing conditions.
  • Tight financing conditions are dampening demand, and this is helping to push down inflation.
  • The Governing Council will continue to follow a data-dependent approach to determining the appropriate level and duration of restriction.
  • Next meeting is on 7 March 2024.

Next 24 Hours Bias

Weak Bearish


The Swiss Franc (CHF)

Key news events today

No major news events.

What can we expect from CHF today?

Demand between the Swiss franc and the dollar has been somewhat even causing USD/CFH to range approximately between 0.8780 and 0.8820 since last Friday. With no major catalyst for either currency thus far, this currency pair is likely to continue trading within this range.

Central Bank Notes:

  • The SNB kept the policy rate unchanged at 1.75% for a second consecutive meeting in December.
  • The inflation forecast puts average annual inflation at 2.1% for 2023, 1.9% for

2024 and 1.6% for 2025.

  • GDP growth is likely to be weak in the coming quarters; subdued demand from abroad and the tighter financing conditions are having a dampening effect.
  • Switzerland’s GDP is likely to grow by around 1% this year. For 2024, the SNB currently expects growth of between 0.5% and 1%.
  • Next meeting is on 21 March 2024.

Next 24 Hours Bias

Weak Bullish


The Pound (GBP)

Key news events today

No major news events.

What can we expect from GBP today?

The Pound dipped as low as 1.2660 overnight before rebounding off this level to hit 1.2690. However, it is now falling towards 1.2660 once more at the beginning of the Asia session and could remain under pressure today.

Central Bank Notes:

  • The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 6-to-3 to maintain its Official Bank Rate at 5.25% for the fourth consecutive meeting.
  • Two members preferred to increase the Bank Rate by 0.25% to 5.50% while one member preferred to reduce Bank Rate by 0.25% to 5.00%.
  • CPI inflation remains well above the 2% target, with twelve-month CPI inflation increasing from 3.9% in November to 4.0% in December 2023 while wage growth has eased across a number of measures and is projected to decline further in coming quarters, although still elevated.
  • This downside news has been broad-based, reflecting lower fuel, core goods and services price inflation.
  • CPI inflation is projected to be 2.3% in two years’ time and 1.9% in three years.
  • Next meeting is on 21 March 2024.

Next 24 Hours Bias

Weak Bearish


The Canadian Dollar (CAD)

Key news events today

No major news events.

What can we expect from CAD today?

The Loonie weakened overnight causing USD/CAD to hit a high of 1.3540 before pulling back towards 1.3515 by the end of the US session. This currency pair was rising once again towards 1.3540 as Asian markets came online and could continue to climb higher today.

Central Bank Notes:

  • The Bank of Canada held its target for the overnight rate at 5.0% for the fourth meeting in a row while continuing its policy of quantitative tightening.
  • Canada’s economy has stalled since the middle of 2023 with real GDP forecasted to grow 0.8% in 2024 and 2.4% in 2025.
  • The slowdown in demand is reducing price pressures in a broader number of CPI components, with CPI inflation expected to remain close to 3% in the first half of 2024 before gradually easing, returning to the target of 2% in 2025.
  • The Governing Council is still concerned about risks to the outlook for inflation, particularly the persistence in underlying inflation, and wants to see further and sustained easing in core inflation and continues to focus on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour.
  • Next meeting is on 10 April 2024.

Next 24 Hours Bias

Medium Bullish


Oil

Key news events today

EIA Crude Oil Inventories (3:30 pm GMT)

What can we expect from Oil today?

API stockpiles increased by 8.4M barrels to register the third consecutive week of large inventory builds which typically signal weaker demand for crude oil in the US. This latest figure was also much higher than the forecast of a 1.5M-increase. Despite the stronger-than-expected build, crude oil prices rose overnight with WTI oil briefly climbing above $79 per barrel before dipping under this level as Asian markets came online. Should EIA inventories also experience a higher-than-anticipated build, it could cap the recent gains in crude.

Next 24 Hours Bias

Weak Bearish

Full Article

General Market Analysis 28/02/2024
General Market Analysis 28/02/2024

General Market Analysis 28/02/2024

374580   February 28, 2024 09:33   ICMarkets   Market News  

Markets Remain Subdued Ahead of Data

Global financial markets remained subdued in trading yesterday ahead of key data later in the week. The 3 major US indices again had relatively quiet days, although the Nasdaq did find some legs to close up 0.37%. The S&P also had a positive day, closing 0.17% in the black, whereas the Dow dropped lower, losing 0.25%. The Dollar was also very quiet, with most of the majors trading at very familiar levels. US Treasury yields remained solid, the 2-year holding near recent highs, closing at 4.718% and the 10-year grinding higher by 2 basis points to hit 4.319%. Oil prices were a bit more perky, Brent gaining 1.4% up to $83.65 and WTI notching up another 1.7% to $78.87 per barrel. Gold remained rangebound in line with the general dollar malaise, closing the New York session at $2,030 an ounce.

Oil Prices Bid on Supply Concerns

Oil prices jumped again yesterday as rumours hit the market that OPEC+ are considering extending output cuts further into the year. Both Brent and West Texas Intermediate pushed higher again in trading yesterday as supply side concerns – the potential OPEC+ cut and further tensions in the Red Sea – combined with potential demand increases from the Far East. Chinese markets saw an increase in demand from improved travel numbers over the lunar new year has led to some optimism that the world’s second biggest economy will lift its consumption faster than previously expected. Traders will continue to keep a close eye on newswires as the trading week progresses with Middle East developments still very much in focus. Support for WTI now sits around the $75 level with resistance at the 2024 high just under the $80 level, with a breakthrough there opening the way for a new range of $80-$85 per barrel.

The Trading Week Really Starts Today!

As expected, it has been a relatively quiet trading week so far but, the event calendar starts to heat up from today and there is an early focus on the Antipodes in the Asian session. First up the Aussie market has key CPI data due with householders hoping for a lower print to put some pressure on the RBA to start cutting rates in the near future. The focus then swiftly jumps across the Tasman for New Zealand’s latest cash rate call, with sticky inflation leading to the possibility of a surprise hike from the RBNZ. The European session is once again quiet in terms of economic releases, but US traders will have more tier 1 data to digest, with the latest Prelim GDP numbers due out as well as fresh inputs from the FOMC’s Bostic and Williams.

Full Article

A Guide to the Relative Strength Index (RSI)
A Guide to the Relative Strength Index (RSI)

A Guide to the Relative Strength Index (RSI)

374558   February 28, 2024 07:33   ICMarkets   Market News  

The world of trading is a dynamic landscape where every decision counts. To navigate this intricate terrain, traders rely on various tools and indicators to make informed choices. One such tool that stands out in the arsenal of traders is the Relative Strength Index (RSI). In this guide, we’ll delve into what RSI is, when to use it, how it’s measured, how to use it effectively, and common mistakes to avoid.

What is the RSI?

The RSI is a momentum oscillator that helps traders gauge the speed and change of price movements. Developed by J. Welles Wilder, it’s a widely respected indicator in technical analysis. RSI is measured on a scale from 0 to 100, with readings above 70 indicating that an asset may be overbought and readings below 30 suggesting it might be oversold.

When to Use RSI:

1. Identifying Overbought and Oversold Conditions: RSI is particularly useful for recognizing when an asset’s price has moved too far in one direction. A reading above 70 suggests the asset might be overbought and could experience a pullback. Conversely, an RSI below 30 implies oversold conditions, potentially indicating a buying opportunity.

2. Confirming Trends: RSI can help confirm the existence of a trend. In an uptrend, RSI readings typically remain above 50, while in a downtrend, they tend to stay below 50. This can provide traders with additional confidence in the direction of a trend.

3. Spotting Divergences: Divergences between RSI and price movements can be strong reversal signals. For example, if an asset makes a higher high while RSI forms a lower high, it suggests weakening upward momentum.

How RSI is Measured:

The RSI is calculated using the following formula:

RSI = 100 – (100 / (1 + RS))

Where:

– RS (Relative Strength) is calculated as the average gain over a specified period divided by the average loss over the same period.

How to Use RSI Effectively:

1. Divergence Confirmation: When RSI and price diverge, be cautious of potential reversals. A bullish divergence (higher RSI, lower price) can signal a potential upward move, while a bearish divergence (lower RSI, higher price) might indicate a reversal downward.

2. Confirmation with Other Indicators: RSI is most potent when used in conjunction with other technical indicators, such as moving averages or trendlines, to confirm trading signals.

3. Overbought and Oversold Zones: While RSI can remain in overbought or oversold territory for extended periods in strong trends, it’s crucial to use these zones in conjunction with other signals for confirmation.

Common Mistakes to Avoid:

1. Ignoring Other Factors: RSI is just one tool in your trading toolkit. Relying solely on RSI without considering other technical indicators, fundamental analysis, or market news can be risky.

2. Overtrading: Avoid the temptation to make trades solely based on RSI readings. Always consider the broader context and have a comprehensive trading strategy.

3. Neglecting Risk Management: Implement stop-loss orders to protect your capital. RSI can help identify potential entry points, but it doesn’t guarantee a profitable trade.

In conclusion, the Relative Strength Index is a valuable tool for traders, offering insights into momentum and potential reversals. When used wisely, RSI can be a powerful aid in decision-making. However, like any tool, it’s most effective when combined with other forms of analysis and used within a well-thought-out trading plan. Avoid common pitfalls, and the RSI can become a valuable addition to your trading arsenal.

Full Article

General Market Analysis 27/02/2024
General Market Analysis 27/02/2024

General Market Analysis 27/02/2024

374320   February 27, 2024 11:26   ICMarkets   Market News  

Markets Steady Ahead of Big Data

Global equities had a relatively quiet start to the trading week yesterday as investors prepared themselves for some big inflation data releases in the coming days. The 3 major US indices all finished the day close to flat, although still near record highs, the Dow dropped just 0.04%, the S&P 500 lost 0.22% and the Nasdaq added a miserly 0.02%. US Treasury yields remained bid, the rate sensitive 2-year gaining 3.5 basis points to trade up to a near a 3-month high at 4.725% and the benchmark 10-year added 2.1 basis points, up to 4.282%. The greenback once again bucked the trend from the yields and dropped off, losing 0.2% on the Dxy with the Euro grinding up to the 1.0850 level. Oil prices perked up as shipping disruptions increased concerns, Brent rising 1.11% to $82.53 a barrel and WTI gaining 1.43% to jump to $77.58 a barrel. Gold retreated further into its range, dropping to $2,025 during the day before finishing around the $2,030 level.

Inflation Data in Focus for the Week

Markets have been fairly quiet for the first few trading sessions of the week as investors turn their attention to key inflation data and potential monetary policy changes in the days ahead. The highlight of the week is no doubt the Federal Reserve’s favoured inflation indicator the PCE Price Index out on Thursday but numbers out in Japan, Australia and Europe will carry equal interest for FX traders looking for the next interest rate differential long-term trade. ECB President Christine LaGarde again last night reinforced their focus on inflation, within the last 2 weeks, markets have brought yearly rate cut expectations for the ECB in line with those of the Fed , so a variance in the two numbers later this week could see the EurUsd break out of recent tight ranges.

Event Calendar Starts to Pick up Today.

It was a quiet event calendar for traders yesterday, but things have already picked up today in the Asian session with the release of some key inflation data in Japan. The CPI number was expected to come out just under the BOJ’s 2% target for the first time in 2-years, but actually printed dead on that figure. However, this print could still scupper hopes of an imminent rate hike in the land of the rising sun and put further pressure on the Yen which is already languishing at low levels against the greenback and on the crosses. There is little on the calendar in the European session but the first tier 1 data out of the US is due once the New York session kicks off. Durable Goods numbers are due early in the day and these are then followed by the CB Consumer Confidence data print. Once again, any stronger than expected results are likely to push the chances of a Fed rate cut further down the line.

Full Article

General Market Analysis 26/02/2024
General Market Analysis 26/02/2024

General Market Analysis 26/02/2024

374048   February 26, 2024 09:33   ICMarkets   Market News  

Stocks Kick off the Week in Bullish Mode

US Stock markets finished the week off well on Friday, the major indices didn’t see the same sort of gains that they experienced on Thursday but crucially there was no dramatic pullback. The Dow and S&P both managed to end on another record high, albeit the S&P rising just 0.04% and the Dow adding 0.16%. The Nasdaq dropped 0.28% by the end of trading but given its near 3% gain on Thursday some profit taking had been expected. The dollar had another relatively flat day and US treasury yields fell from recent highs, the benchmark 10-year losing 7.1 basis points to drop to 4.255% and the 2-year losing 2.2 basis points to 4.691%. Oil prices took a hit on the day, Brent losing 2.5%, down to $81.62 per barrel and WTI dropping 2.7% to trade back to $76.49 a barrel. Gold bucked the trend, gaining 0.8%, trading back up to the $2,040 level before settling near $2,036 by the close.

Investor Focus to Switch Back to Rates

It has been a stellar few weeks for US stock markets as strong corporate results – led by market darling Nvidia – have pushed indices to record levels. However, there is now some concern that investor focus will move back to the bigger macroeconomic picture and the ability of the FOMC to cut rates in the next few months in the face of strong data in the states. If monetary policy does move back into the spotlight, then some feel that rising bond yields may push stocks into a corrective phase as the euphoria from earnings fades. This week we have the Fed’s favoured inflation indicator in the form of the PCE Price Index and a surprise result either side could see some strong moves in the market.

Another Quiet Monday to Start the Week

It does look set to be a relatively dour start to the trading week today as investors look to remain on the front foot after good moves last week The macroeconomic event calendar is very quiet again today and therefore traders are expecting more rangebound conditions ahead, although most are looking to buy on dips in the current environment. There is nothing to trouble the scorers in the Asian session today, but there will be some focus on the pound once London opens as the market hears from MPC members Breeden and Pill during the day. The New York session see’s the latest release of the New Home Sales data in the US with market expectation that 680k new dwellings were sold last month.

Full Article

THE WEEK AHEAD: WEEK COMMENCING 26 FEBRUARY 2024

THE WEEK AHEAD: WEEK COMMENCING 26 FEBRUARY 2024

374022   February 26, 2024 05:17   ICMarkets   Market News  

It was a fantastic week for investors last week as US stock markets hit new record highs as tech and AI-dominated stocks pushed the indices higher. The market is still in a positive mood as the fresh trading week approaches but there are some key data releases and central bank updates ahead which could present some headwinds or indeed fresh trading opportunities.

Here’s our usual day-by-day breakdown of the major risk events scheduled this week:

A quiet start to the trading week with little on the calendar to get traders excited. Sterling traders will be keeping close tabs on MPC members Breeden and Pill when they speak during the London and New York sessions to feature the latest US New Home Sales data release.

Another relatively quiet and calm day before the storm of updates later in the week. Once again, the only tier 1 data releases are due in the North American time zone which features the US Durable Goods data release and the CB Consumer Confidence numbers.

The event calendar starts to heat up from today with a big focus on the antipodes early in the piece. First up the Aussie market has key CPI data due out before the focus swiftly jumps across the Tasman for the RBNZ’s latest cash rate call. The European session is once again quiet, but US traders will be looking at the latest Prelim GDP numbers and we also hear from the FOMC’s Bostic and Williams.

Set to be the week’s busiest day in risk event terms, G20 Meetings kick off, so traders are expecting updates throughout the day. The Asian session begins with attention once again on the Australian market with the latest Retail Sales numbers due out. In Europe, we have a raft of data prints due out, including, German Prelim CPI, Swiss GDP, and Spanish CPI numbers. The US session is also busy with Canadian GDP data due out before the week’s highlight, the US PCE Price Index number – the Fed’s favored inflation print as well – as the usual weekly unemployment claims data.

The hits keep on coming into the final trading day of the week. The focus in APAC will be on the Chinese market early in the day with the release of the Manufacturing and non-manufacturing PMI numbers. The European session sees the release of the latest Core CPI Flash Estimate for the Eurozone and we have yet more US data due in the New York session, this time the ISM Manufacturing PMI numbers followed by the University of Michigan’s Consumer Sentiment data.

Full Article

General Market Analysis 23/02/2024
General Market Analysis 23/02/2024

General Market Analysis 23/02/2024

373782   February 23, 2024 10:29   ICMarkets   Market News  

Stocks Surge to New Record Highs- Nasdaq up 3%

US stocks surged to new record closes as equity optimism exploded on the back of stronger than expected numbers from Wall Street’s AI darling, Nvidia. All three of the major US indices had stellar days with both the S&P and the Nasdaq recording record closing highs, the Dow jumped 1.18% but was lagging behind the other two with tech stocks taking the S&P 2.11% higher and the Nasdaq up 2.96%. US treasury yields ground higher again as data once again confirmed resilience in the US economy, the 2-year adding 4.4 basis points to trade up to 4.696%. Oil pushed higher again as hostilities continued in the Red Sea, Brent rising 0.77% to $83.67 a barrel and WTI adding 0.90% to trade up to $78.61 a barrel. Gold had another rangebound day and settled once again in the mid-$2,020’s as it looks for the next catalyst to push it one way or the other.

Nvidia Drives the US Stock Market to Record Highs

There was only one name on most investors lips yesterday as stock markets drove higher and it was Wall Street’s star of 2023, Nvidia, and it looks set to keep rising. Shares in the chipmaker surged to all-time highs yesterday to record the biggest single session gain in history, jumping 16% on the day. This added approximately $277 billion in market capitalization, bringing the total market value to around the $2 trillion mark. Investors are now left pondering just how far can this company go on the back of the AI revolution and at the moment it does appear that the sky is the limit. Some traders are expecting some profit taking flow in the market later today as the weekend approaches but certainly for the short term most are looking for levels to get long of the record-breaking stock.

Markets Enter the End of the Week in Positive Mood

Global financial markets are entering the final trading day of the week on a wave of optimism after a stellar session on Wall Street. The APAC session has already kicked off with shares well in the black in Australia and New Zealand, Kiwi indices rising despite much lower-than-expected Retail Sales results early in the session. Investors are expecting reduced liquidity later with Japanese traders enjoying a long weekend as they celebrate the emperor’s birthday. Euro traders will pay close attention to the German Ifo Business climate data on the London open, but once again investors are expecting to see most of the action for the day come once Wall Street opens after yesterday’s big moves.

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Nvidia Shares Surges on Strong AI Accelerator Demand: Revenue Forecast Exceeds Expectations
Nvidia Shares Surges on Strong AI Accelerator Demand: Revenue Forecast Exceeds Expectations

Nvidia Shares Surges on Strong AI Accelerator Demand: Revenue Forecast Exceeds Expectations

373776   February 23, 2024 09:56   ICMarkets   Market News  

Nvidia Corporation saw a significant rise in its stock value after announcing a remarkable sales forecast, surpassing analysts’ expectations. The company’s revenue projection for the current period is approximately $24 billion, highlighting continued strong demand for its artificial intelligence accelerators. These accelerators are crucial for AI models, driving the growth of generative AI services like chatbots. Nvidia’s CEO, Jensen Huang, emphasized the increasing demand globally for accelerated computing and generative AI.

The company’s stock surged by up to 11% in after-hours trading, following the announcement, reflecting investors’ confidence in Nvidia’s position as a leader in AI computing. Nvidia’s market capitalisation has soared by over $400 billion this year, reaching $1.7 trillion, as investors anticipate further growth in the AI computing sector.

Huang indicated that demand for Nvidia’s latest products will continue to outstrip supply throughout the year, particularly driven by the growing investment in generative AI. Nvidia’s revenue in the fiscal fourth quarter more than tripled to $22.1 billion, with its data centre division being the primary revenue contributor.

While Nvidia faces competition and challenges such as navigating export rules for chips to China, the company remains proactive, expanding its partnerships and product offerings. Nvidia aims to extend its AI technology beyond large data centre companies and is exploring opportunities in government and corporate sectors worldwide.

In summary, Nvidia’s strong financial performance, driven by robust demand for its AI accelerators, underscores its position as a key player in the AI computing industry, with significant growth potential ahead.

Full Article

Space – The Final Frontier for Investors
Space – The Final Frontier for Investors

Space – The Final Frontier for Investors

373763   February 23, 2024 09:09   ICMarkets   Market News  

With Dr Pippa Malmgren | Former Presidential Adviser
As nations and billionaires compete for dominance in space, the implications for investors are vast. Dr. Pippa Malmgren, former adviser to President George W. Bush, sheds light on the immense financial opportunities emerging beyond Earth. From lunar missions to asteroid mining, we analyze the economic consequences of the new space race.

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Will crypto solve the payment problem?
Will crypto solve the payment problem?

Will crypto solve the payment problem?

373762   February 23, 2024 09:05   ICMarkets   Market News  

With Eric Pascal | Global Head of Digital Assets for Standard Chartered
Some of the biggest problems still dogging the global payments industry are visibility, access and control.

On this episode of IC Your Trade 4, host Pamela Ambler speaks to Standard Chartered’s Global Head of Digital Currencies Eric Pascal about whether crypto has a role in the future of digital payments?

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