Daily market analysis

Forex Market Analysis: Fed & Tech Impact 31 Jan 2024

January 31, 2024

Forex Daily Update: 31 Jan 2024

CURRENCIES:

  • Key Points:
    • The consensus suggests no alteration in interest rates.
    • However, the Federal Open Market Committee (FOMC) may modify its guidance, particularly in response to developments in inflation.
    • Traders should brace for increased volatility in the foreign exchange (FX) markets, as any shift in the Fed’s stance could trigger substantial market swings.
    • For a detailed preview of this event, readers can refer to the provided link for comprehensive insights.
    • Major currency pairs, including EUR/USD, GBP/USD, USD/JPY, and USD/CAD, are scrutinized.
    • The emphasis is on identifying crucial price thresholds that might function as either support or resistance in the forthcoming trading sessions.
    • Traders are advised to pay close attention to these technical indicators to navigate potential market movements effectively.

STOCK MARKET:

  • Key Points:
    • Market Movements:
      • Nasdaq Composite (^IXIC) experienced a decline of about 0.8%.
      • Dow Jones Industrial Average (^DJI) rose by 0.4%.
      • S&P 500 (^GSPC) traded flat.
      • The benchmark index failed to secure another record closing high.
    • Big Tech Earnings:
      • Microsoft (MSFT) reported after-the-bell earnings beating both top and bottom-line expectations.
      • Microsoft’s shares fluctuated in after-hours trading; guidance is expected during the earnings call.
      • Alphabet (GOOGL, GOOG) saw shares drop approximately 5%, with fourth-quarter ad revenue missing expectations.
      • AMD (AMD) reported fourth-quarter revenue in line with analyst expectations, with a 2% drop in after-hours trading.
      • Apple (AAPL), Amazon (AMZN), and Meta (META) among the “Magnificent Seven” tech mega-caps set to announce results on Thursday.
    • Other Market Developments:
      • General Motors (GM) surpassed expectations for sales and revenue in the fourth quarter.
      • GM shares closed up nearly 8%.
      • Investors await the Federal Reserve’s interest rate decision at the end of its two-day meeting, with debate on potential cuts in March or May.
  • Market Indices:
    • MSFT: -0.28%
    • ^GSPC: -0.06%
    • ^DJI: +0.35%
    • ^IXIC: -0.76%

Stay ahead in the markets with VT Markets, start trading with our MT4 / MT5 platforms.

Styliana Charalambous
Market Analyst

My name is Styliana Charalambous, possessing a professional qualification as a Chartered Certified Accountant and a Bachelor’s Degree in Accounting and Finance. Highly motivated financial analyst with expertise in audit and investment strategies. I have several years of experience in the finance industry, as an audit supervisor at KPMG and the Head of Investment & Market Research in a multinational Fintech company.

Passionate about personal finance, investing, and creating finance content on social media. Lecturer in Accounting & Finance at Canterbury Christ Church University. I am the Founder and CEO of Selfmade Academy, an organization that helps thousands of students worldwide to plan for their financial future and make smart decisions about their money

This site uses cookies to provide you with a great user experience.
By using www.vtmarkets.net, you accept
our cookie policy.