Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
For several years, VT Markets has been regarded as a leading Forex broker, offering traders a dynamic and seamless experience worldwide. However, VT Markets also stands as a collaborative partner for individuals and businesses seeking to maximise their earning potential.
Through comprehensive affiliate and broker programs, VT Markets offers an enticing proposition for those looking to align with a trusted name in the industry. This article will outline the details of the VT Markets Partnership Program and why many businesses opt to join the community.
Affiliate and Introducing Broker programs — a gateway to success
Partnering with VT Markets is not just about engaging in financial markets. It’s about collaboration, growth and shared success in the ever-evolving world of online trading. Individuals and businesses can gain ample market exposure by joining the ranks of a reliable broker like VT Markets.
The VT Markets affiliate program
Our VT Affiliate program provides a straightforward and rewarding avenue for individuals looking to monetise their online presence. By promoting VT Markets through various marketing channels, affiliates can earn substantial commissions for every qualified client referred to the platform. The process is user-friendly, and affiliates gain access to a suite of marketing tools, tracking mechanisms and real-time reporting to optimise their promotional strategies.
The VT Markets Introducing Broker program
For businesses and more experienced partners, VT Markets also offers an advanced Introducing Broker (IB) program. This program empowers partners with the tools and support needed to grow their client base. IBs receive a share of the trading volume generated by their referred clients, creating a mutually beneficial relationship. VT Markets goes beyond a standard IB program by providing personalised assistance, ensuring that partners have the resources to excel in their roles.
Increase revenue and work with industry leaders — why partner with VT Markets
VT Markets is among the fastest growing brokers in the world, and it’s not difficult to see why. Collaborating with VT Markets can bring on outstanding benefits, including:
Trusted reputation
Partners collaborating with VT’s Affiliate program gain a significant advantage by aligning with a broker renowned for its transparency, integrity and commitment to client success. VT Markets’ reputation as a trusted and regulated multi-asset broker instils confidence in potential clients, making it easier for partners to attract and convert leads.
Experience comprehensive support
Unlike standard Cost Per Acquisition (CPA) plans, VT Markets offers partners more than just financial incentives. The broker provides extended support to its affiliates and IBs, offering guidance on marketing strategies, client acquisition and retention. This standard of comprehensive support is geared towards enhancing partner performance, ensuring they have the knowledge and resources needed to thrive in the competitive world of online trading, whether that’s learning more about the Forex market or ETFs.
Increase revenue
VT Affiliate partnership programs are structured to maximise earnings potential. With competitive commission structures and a revenue-sharing model, partners can unlock substantial income streams. The broker’s commitment to partner success also means that as partners grow, so does their revenue potential.
Boosted performance
Partners can leverage VT Markets’ robust analytics and reporting tools to track the performance of their referrals in real time. This data-driven approach enables partners to refine their strategies, identify high-performing channels and optimise their marketing efforts for better results.
Extended support for partners, introducing the VT Markets CPA Plan
As VT Markets is committed to empowering its partners with a holistic support system, the broker’s CPA Plan goes beyond standard expectations. Encompassing educational resources, leading trading platforms, such as MT4 and MT5, personalised assistance and cutting-edge technology, like the VT Markets app, the VT Markets CPA Plan aims to build lasting and mutually beneficial relationships with its affiliates and introducing brokers.
To explore the exciting opportunities within VT Markets’ partnership programs, individuals and businesses can visit the broker’s Affiliate Program page or get in touch for more information.
Experience a sophisticated affiliate program with VT Markets — join today
By aligning with VT Markets, individuals and businesses open the door to a realm of possibilities, where collaboration, cutting-edge technology and unwavering support converge.
Joining the VT Markets Affiliate Program is simple — sign up and register via the VT Markets website, use the unique link to refer and bring on new clients and earn a commission or rebate for each client onboarded and ongoing rebates for every trade they make.
About VT Markets Partnership Program
VT Markets is a regulated multi-asset broker with a presence in over 160 countries. The broker has won many international accolades, including Best Multi-Asset Broker and Fastest Growing Broker. Its mission is to make trading an easy, accessible and seamless experience for everyone. For more information on VT Affiliate programs, please visit www.vtmarkets.net or email info@vtmarkets.com.
In the penultimate trading session of the year, the S&P 500 approached an all-time high, indicating a robust finish to an exceptionally bullish year for stocks. The Dow Jones Industrial Average secured a new record, while the Nasdaq Composite saw a slight dip. With major indices poised to end 2023 on gains, projected around 13.8% for the Dow and 24.6% for the S&P, the Nasdaq’s remarkable 44.2% rise stands out, buoyed by tech giants and fervor over AI. As the market anticipates the traditional “Santa Claus rally,” the late 2023 surge sets an optimistic tone for 2024, backed by positive technical indicators and expectations of rate cuts and reduced inflation. In the currency market, the US Dollar Index fluctuated significantly, buoyed by rising Treasury yields, impacting major pairs like EUR/USD and GBP/USD. Additionally, USD/JPY and AUD/USD experienced noteworthy volatility, while gold faced a pullback amidst the USD resurgence and climbing yields, reflecting the complex interplay of economic factors and geopolitical events shaping currency movements.
Stock Market Updates
In the penultimate trading day of the year, the S&P 500 edged slightly higher, nearing an all-time high at 4,783.35, signaling a robust end to a bullish year for stocks. The Dow Jones Industrial Average also achieved a new record, closing at 37,710.10, while the Nasdaq Composite experienced a minor dip to 15,095.14. Notably, all major indices are set to conclude 2023 with gains, with the Dow and S&P projected to finish up nearly 13.8% and 24.6%, respectively. The Nasdaq stands out with a remarkable 44.2% climb, its most substantial increase since 2003, primarily fueled by the resurgence of mega-cap tech companies and the fervor surrounding artificial intelligence.
Amidst this year-end rally, the market looks forward to the “Santa Claus rally,” historically observed in the final days of a year and the early days of the subsequent one. The market’s impressive late-2023 surge, rebounding from a sluggish third quarter, positions the S&P with an 11.6% quarterly increase, marking its strongest quarterly performance in three years. As 2023 concludes, the optimistic sentiment continues, with a positive technical outlook and expanding market breadth anticipated to set the stage for a promising 2024. Forecasts pivot on expectations of forthcoming rate cuts and sustained alleviation in inflation, creating what’s termed a “perfect storm” for stocks in the coming year.
On Thursday, most sectors experienced modest gains, with Utilities leading at +0.70%, followed closely by Real Estate at +0.53% and Financials at +0.35%. Health Care, Information Technology, and Communication Services saw smaller increases ranging from +0.12% to +0.24%. However, Consumer Discretionary and Materials faced declines of -0.41% and -0.46% respectively. Energy witnessed a significant drop of -1.47%, marking the most substantial decrease among all sectors for the day.
Currency Market Updates
In the currency market update, the US Dollar Index (DXY) demonstrated significant volatility, bottoming out at 100.86 before sharply rebounding to 101.25. The Greenback’s resurgence was propelled by a surge in US Treasury yields, reaching 3.85% following a successful auction of the 7-year note. Despite the correction, with higher yields contributing to its recovery, the overall trend for the USD remains downward, albeit with potential for further correction.
EUR/USD faced its steepest decline in two weeks, sliding from a monthly high of 1.1139 to the 1.1055 area. The pair’s movement was influenced by Spain’s impending inflation figures and Eurostat’s scheduled release of Eurozone figures, both expected to provide significant insights into the euro’s trajectory. Similarly, GBP/USD retreated from above 1.2800 to around 1.2700, with the UK’s final economic report for 2023 focusing on Nationwide Housing Prices for December.
USD/JPY experienced notable volatility, plunging to 140.23—the lowest level since July—before recovering to 141.40, supported by rising yields. AUD/USD reached a peak at 0.6871 but failed to maintain momentum, slipping to 0.6835. The Australian Dollar faces immediate support at 0.6825, while a potential upswing could occur if it surpasses 0.6850.
Gold faced a pullback from $2,088 to $2,065 due to the rebounding US Dollar and rising yields. Despite the overarching upward trend, current conditions hint at a potential downside bias ahead of the Asian session for the precious metal. These fluctuations across currency pairs and gold prices reflect the intricate interplay between economic indicators, market sentiments, and geopolitical events driving currency market movements.
Picks of the Day Analysis
EUR/USD (4 Hours)
EUR/USD Falters Despite US Economic Data; Eyes on Eurozone Inflation
The EUR/USD faced setbacks as it slipped below 1.1100, driven by a surge in US Treasury yields despite mixed American economic reports. The US Dollar remained resilient, largely unaffected by the jobless claims uptick and stagnant pending home sales. Amidst Wall Street’s festive rally, the greenback found strength with a rebound in yields post a 7-year note auction, sidelining the impact of economic data. Attention turns to Spain’s preliminary CPI figures for December, crucial for insight into Eurozone inflation, likely to shape the pair’s trajectory.
On Thursday, the EUR/USD moved lower and reached the middle band of the Bollinger Bands. Currently, the price moving slightly above the middle band, suggesting a potential upward movement. Notably, the Relative Strength Index (RSI) maintains its position at 55, signaling a neutral outlook for this currency pair.
Resistance: 1.1138, 1.1222
Support: 1.1043, 1.0946
XAU/USD (4 Hours)
XAU/USD Continues Surge Amid Dollar Weakness and Investor Optimism
Gold prices are on the rise as the US Dollar faces pressure amidst a buoyant Asian stock market. Investor enthusiasm for anticipated aggressive interest rate cuts by the Fed, coupled with China’s commitment to bolster domestic demand and liquidity injections by the PBOC, fuels risk appetite, edging the Dollar lower. Despite a slight rebound in US Treasury bond yields, Gold maintains its upward momentum, nearing the $2,100 mark in Asian trade. The Dollar Index hovers near five-month lows, while US Treasury bond yields, after bouncing off multi-month lows, stand at 3.81%, up 0.50% on the day. Wednesday’s market return saw Gold hit a record close above $2,070, propelled by a Dollar sell-off post-positive US auctions. Anticipation of Fed rate cuts continues to drive demand for stocks and bonds, influencing Treasury yields. With the focus shifting to mid-tier US Jobless Claims and a seven-year bond auction, Gold traders remain vigilant amid pre-New Year thin liquidity conditions, expecting potential upside boosts.
On Thursday, XAU/USD moved lower and reached the middle band of the Bollinger Bands. Currently, the price moving at the upper band, suggesting a potential upward movement. The Relative Strength Index (RSI) stands at 53, signaling a neutral outlook for this pair.
Resistance: $2,088, $2,103
Support: $2,065, $2,048
Written on December 29, 2023 at 3:10 am, by anakin
In the continuously evolving and growing finance market, Gen Z is making waves by diving into the dynamic realm of Forex trading. With trillions of dollars being exchanged daily and more than 100 currencies to trade with, the Forex market welcomes a new generation of traders.
For young traders beginning their Forex journey, research is essential. VT Markets, a leading brokerage platform, is at the forefront, providing an essential gateway for young traders to navigate the exciting landscape of foreign exchange markets. This article will delve into the intricacies of the Forex market, discussing the basics to encourage informed decision-making with every trade.
Currency pairs
In Forex trading, currencies are traded in pairs, such as EUR/USD or GBP/JPY. The first currency in the pair is the base currency, and the second is the quote currency. Understanding the relationship between these pairs is crucial for making informed trading decisions that align with a trader’s strategy.
Currency pairs are classified as either minor, major or exotic. A major currency pair consists of the most widely traded currencies globally, including the US Dollar (USD) and another strong and globally recognised currency, such as the Euro (EUR), Japanese Yen (JPY) or British Pound (GBP). A minor currency pair involves the US Dollar (USD) paired with a currency from a smaller or emerging economy, while exotic currency pairs combine a major currency with a currency from a more niche market, like the Singapore Dollar (SGD).
VT Markets allows traders to access over 40 currency pairs, providing ample diversification opportunities for their Forex portfolios.
Technical and fundamental analysis
For Gen Z traders aspiring to thrive in Forex, understanding the power of fundamental and technical analysis in Forex trading is key to ongoing success. Fundamental analysis involves evaluating economic indicators, geopolitical events and market news to gauge the overall health of a currency. Successful traders leverage this knowledge to predict future price movements and make strategic decisions.
It’s little surprise that the younger generation is tech-savvy, and technical analysis aligns perfectly with their preferences. By utilising charts, patterns and indicators, Gen Z traders on VT Markets can analyse historical price data to forecast potential market movements.
Contracts for difference (CFD) trading
While many Gen Z traders prepare to dive head first into the Forex exchange market, securing the financial means to do so can prove difficult, prompting young traders to consider alternative methods. Contracts for Difference (CFDs) are financial derivatives that enable traders to speculate on the price movements of various financial instruments, including currencies, without owning the underlying assets.
To do this, traders use leverage — the ability to control a larger position size in the market with a relatively smaller amount of capital. This allows Gen Z traders on platforms like VT Markets to engage in both rising and falling markets and amplify their trading opportunities beyond traditional ownership of assets.
Embracing technology in Forex — MT4, MT5 and the VT Markets app
As the Forex market continues to become more digital, Gen Z traders have become empowered by cutting-edge technology, with MetaTrader 4 (MT4) and MetaTrader 5 (MT5) leading the charge. These highly developed platforms offer a seamless trading experience with advanced charting tools, automated trading capabilities and real-time market analysis.
With these platforms, Gen Z can access a wealth of information and execute trades with ease, all at their fingertips. Young traders can download and install these platforms through the VT Markets website and access comprehensive support to guide them through the process.
VT Markets also proves to be a game-changer for the younger generation of traders craving a smooth trading experience. The VT Markets app provides a user-friendly interface, allowing them to trade on the go, receive real-time market updates and manage their Forex portfolios effortlessly. The app’s intuitive design aligns perfectly with the preferences of the tech-savvy generation: fast, efficient and precise trading.
The path forward with VT Markets
As the world welcomes a new generation of traders, the Forex market will only continue to grow. By leveraging these educational resources available through the VT Markets website, young traders can build a solid foundation and gain confidence in navigating the complexities of the Forex market.
About VT Markets
VT Markets is a regulated multi-asset broker with a presence in over 160 countries. The broker has won many international accolades, including Best Multi-Asset Broker and Fastest Growing Broker. Its mission is to make trading an easy, accessible and seamless experience for everyone. For more information, please visit www.vtmarkets.net or email info@vtmarkets.com.
Written on December 29, 2023 at 1:30 am, by anakin
Stocks closed higher as the S&P 500 edged up 0.14%, nearing its all-time high from January 2022. The Dow Jones Industrial Average also hit a new closing high, while the Nasdaq Composite rose 0.16%, marking an eight-week winning streak. Analysts anticipate a potential ‘Santa Claus rally’ despite concerns over market over-optimism, cautioning investors about unexpected shifts as the Federal Reserve’s rate decisions loom. Additionally, the US Dollar weakened against major currencies, influenced by lower Treasury yields and economic data releases, while the commodity market saw Gold nearing record highs and Silver stabilizing.
Stock Market Updates
Stocks closed higher, with the S&P 500 edging up 0.14% to nearly reach its all-time high from January 2022, ending at 4,781.58. The Dow Jones Industrial Average also hit a new closing high, while the Nasdaq Composite rose 0.16%. This climb marks an eight-week winning streak for the S&P, Dow, and Nasdaq, with the S&P nearing its record. Analysts anticipate a ‘Santa Claus rally,’ a period noted for market upswings at the end of one year and the start of the next, which historically sees an average increase of about 1.3% for the S&P 500.
Despite the overall positive market sentiment, concerns loom regarding potential over-optimism. Some experts worry that the market’s enthusiasm might lead to disappointment if the Federal Reserve delays rate cuts. While Fed funds futures indicate possible rate cuts as early as March, experts caution that the current bullish sentiment might expose investors to unexpected market shifts, especially with 90% of S&P 500 stocks trading above their 50-day moving average, suggesting a level of market “frothiness.” Analysts advise caution amidst this optimistic climate to guard against unforeseen market volatility.
On Wednesday, across various sectors, the market showed a modest overall increase of 0.14%. Health care and real estate sectors led the gains, both surging by 0.46%, followed closely by consumer staples at 0.44%. Sectors like consumer discretionary and materials experienced moderate gains at 0.27% and 0.25%, respectively. However, there were declines in certain sectors, with energy facing the most significant drop of 0.53%, followed by communication services at -0.21% and utilities at -0.12%. Information technology saw the smallest change, with a marginal increase of 0.02%.
Currency Market Updates
The currency markets saw a notable weakening of the US Dollar as the US Dollar Index (DXY) dropped below 101.00, marking its lowest point since July. This decline was attributed to a combination of factors, including the 10-year Treasury yield hitting a five-month low at 3.78%, coupled with the 2-year settling at 4.24%, the lowest since May. Amidst this, US stocks hovered near recent highs, especially the Dow Jones, which edged closer to an all-time high. However, the Dollar’s decline persisted due to increased risk appetite and the sustained pressure of lower Treasury yields. The release of economic data further exacerbated the situation, with the Richmond Fed Manufacturing Index dropping to -11 in December, reflecting worse-than-expected figures across shipments, new orders, and employment. The upcoming release of the weekly Jobless Claims report, trade figures, and November’s Pending Home Sales report could add to the market’s sentiment.
Meanwhile, the Euro (EUR/USD) surged past 1.1100 for the first time in five months, driven by the broad-based weakness of the Dollar. The Pound (GBP/USD) also witnessed a strengthening trend, reaching 1.2802, its strongest level since August, although it subsequently retreated slightly. The Japanese Yen outperformed amidst the Dollar’s decline, pushing USD/JPY below 142.00 and approaching December lows. Australian (AUD/USD) and New Zealand (NZD/USD) currencies remained in upward trajectories, facing resistance levels around 0.6850 and reaching the 0.6350 area, respectively, backed by a combination of risk appetite and lower yields. Conversely, the Canadian Dollar (USD/CAD) experienced a lag despite bottoming at 1.3175, its lowest since August, as it climbed back above 1.3200 by the end of the trading day. In the commodity market, Gold continued its upward trajectory, nearing a record close above $2,070, while Silver stagnated around $24.25, failing to follow Gold’s upward trend.
The EUR/USD rallied past the 1.1100 mark propelled by a weakening US Dollar, sinking below 101.00 in the DXY index for the first time in five months. With US Treasury yields hitting new lows amidst expectations of Federal Reserve rate cuts in the upcoming year, the Dollar faced downward pressure while equity markets remained buoyant. Despite quiet trading, anticipation grows for crucial reports like the US weekly Jobless Claims and Spain’s preliminary inflation figures. As 2023 concludes, the serene market conditions continue to weigh on the Dollar, setting the stage for a pivotal turn with the impending release of US employment data next week.
On Wednesday, the EUR/USD moved higher and reached the upper band of the Bollinger Bands. Currently, the price moving slightly below the upper band, suggesting a potential upward movement. Notably, the Relative Strength Index (RSI) maintains its position at 75, signaling a bullish outlook for this currency pair.
Resistance: 1.1138, 1.1222
Support: 1.1043, 1.0946
XAU/USD (4 Hours)
XAU/USD Navigates Volatility Amidst Cautious Dollar and Fed Watch
Gold (XAU/USD) is experiencing a pause as the US Dollar (USD) stabilizes amidst market caution, despite sluggish US Treasury bond yields. Investors, returning from the Christmas holiday, are refraining from substantial trades, closely monitoring macroeconomic developments. Uncertainty looms as Fed interest rate cut expectations for 2024 remain ambiguous, leaving Gold buyers in suspense. The dovish sentiment surrounding the Fed’s policy shift strengthened following lackluster data on the Core PCE Price Index, propelling the US Dollar Index to a five-month low. With thin liquidity and cautious trading ahead due to the holiday week, Gold’s trajectory remains vulnerable to intense fluctuations amidst this landscape.
On Wednesday, XAU/USD moved higher and reached the upper band of the Bollinger Bands. Currently, the price moving at the upper band, suggesting a potential upward movement. The Relative Strength Index (RSI) stands at 72, signaling a bullish outlook for this pair.
Resistance: $2,088, $2,103
Support: $2,070, $2,048
Written on December 28, 2023 at 2:45 am, by anakin
Sydney, Australia, 27 December 2023 – Having reaffirmed its commitment to corporate social responsibility (CSR) earlier in the year, VT Markets is closing the year with 3 major environmental, social, and governance (ESG) milestones under its belt:
Food for good with the UN’s ShareTheMeal programme Through the United Nations’ online ShareTheMeal platform, VT Markets raised 2,000 meals for communities in need between November to December 2023.
A gift of joy with South Africa’s Cotlands Ahead of the holiday season, VT Markets donated 1,240 educational toys—including stacking rings and puzzles—to Cotlands, a Johannesburg organisation seeking to provide early development opportunities to marginalised children.
Youth advocacy at UNESCO’s Jakarta workshop In addition to pledging its support as a key sponsor, VT Markets advocated for equal treatment of young STEM professionals via a keynote address at the UNESCO-led 3rd International Workshop and Training on Youth and Young Professionals in Science, Engineering, Technology, and Innovation for Disaster and Climate Resilience.
Commenting on these initiatives, VT Markets’ Director of Global Marketing, Martin Li, stated: “The work we’ve done with ShareTheMeal, Cotlands, and UNESCO is just the start of much more to come. In a year that has yielded its fair share of challenges for humanity, we’re delighted to have contributed in some way.”
Heading into 2024, VT Markets is poised to build on this success. Off the back of a fresh partnership with the renowned team competing in the formula E world championship Maserati MSG Racing, the company will redouble its ESG efforts with both new and existing collaborators in tow. For news of upcoming initiatives and potential sponsorship opportunities, be sure to follow VT Markets on their official website and social media pages.
About VT Markets:
VT Markets is a regulated multi-asset broker with a presence in over 160 countries. To date, it has won numerous international accolades including Best Customer Service and Fastest Growing Broker.
In line with its mission to make trading accessible to all, VT Markets currently offers unfettered access to over 1,000 financial instruments and a seamless trading experience via its award-winning mobile app.
Take a journey from beginner to expert with our webinar, ‘Basic to Expert: Start Trading Effortlessly.’ We’ll guide you through trading essentials, offering insights and strategies to make your transition smooth. Learn to navigate the markets confidently, turning beginner steps into pro moves.
Written on December 27, 2023 at 7:26 am, by anakin
The markets witnessed a surge as major indices edged closer to historic peaks in the final week of the year. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all marked significant gains, with the Nasdaq 100 hitting a new all-time high. Wall Street’s bullish run continued, fueled by optimism stemming from encouraging inflation data aligning with the Federal Reserve’s targets. Meanwhile, the USD/JPY pair saw movement, while the Australian Dollar stood strong against a subdued US Dollar, influenced by potential central bank stances. Furthermore, developments in China’s industrial profits hinted at a slowdown, impacting trade relations and currency movements. In the currency markets, the EUR/USD pair maintained stability, influenced by data-driven decisions by the ECB and prevailing market sentiment, as economic data remained minimal.
Stock Market Updates
Stocks surged at the onset of the final week of the year, propelling major indices closer to historic peaks. The S&P 500 escalated by 0.42% to reach 4,774.75, nearing its all-time high of 4,796.56 from January 2022. Similarly, the Nasdaq Composite surged by 0.54% to settle at 15,074.57, while the Dow Jones Industrial Average gained 159.36 points, closing at 37,545.33, marking a 0.43% increase. The Nasdaq 100 notably climbed by 0.6%, achieving a new all-time high and ending at 16,878.46.
The market’s bullish trajectory persisted as the S&P 500 approached record levels, merely less than 1% away from its previous peak. Wall Street sustained this momentum, with the S&P 500 marking its eighth consecutive weekly advance, the lengthiest streak since 2017, and similar winning streaks observed in the Dow and Nasdaq Composite. Investor optimism soared following encouraging inflation data indicating a closer alignment with the Federal Reserve’s 2% target. Moreover, the anticipation of potential rate cuts in the upcoming year further bolstered equities, contributing to recent weeks’ market upswings.
On Tuesday, across various sectors, the market saw a positive trend with a general increase in most sectors. Energy stood out with a notable rise of 0.87%, leading the charge, followed closely by Real Estate at 0.78% and Industrials at 0.73%. Utilities and Materials showed moderate gains at 0.65% and 0.44% respectively, aligning with Consumer Staples also at 0.44%. Financials and Information Technology both saw increases of around 0.4%, while Consumer Discretionary showed a slight uptick of 0.35%. Communication Services and Health Care trailed the pack with a smaller increase of 0.22% each. Overall, the market demonstrated positive momentum, particularly in the Energy and Real Estate sectors on Tuesday.
Currency Market Updates
The USD/JPY pair experienced upward movement, reaching 142.84 after the Bank of Japan’s Summary of Opinions release, with the market showing quiet activity amidst the holiday season’s thin trading. The BoJ hinted at potential policy shifts if the wage-price cycle strengthens but has not finalized the timing for such changes. Meanwhile, in the US, the latest Core PCE figures fell slightly below expectations, signaling a 3.2% YoY growth in November, potentially influencing the Federal Reserve’s future interest rate decisions. Amidst these developments, the currency market awaits the US Richmond Fed Manufacturing Index and Initial Jobless Claims for further insights, but their impact might be limited given the prevailing light trading conditions.
Concurrently, the Australian Dollar stood at a five-month high against a subdued US Dollar, backed by the Australian central bank’s potential hawkish stance in early 2024 due to robust inflation. However, China’s reported decline in Industrial Profits for January to November by 4.4% hints at a slowdown, prompting expectations for additional policy support to bolster the second-largest global economy. This slowdown could impact the RBA’s stance, considering the significance of trade relations between Australia and China. The weakening US Dollar Index, influenced by Fed easing speculations and declining Treasury yields, further highlights the prevailing pressure on the Greenback.
On the EUR/USD front, the pair traded near August’s highest level around 1.1040, encountering minimal losses. The Core PCE figures in the US slightly missed expectations, growing 3.2% YoY, while the Eurozone witnessed a consistent ECB policy stance, with no change in interest rates. The ECB’s data-driven decisions, clarified by President Christine Lagarde, and the slightly more hawkish tone from ECB Vice President Luis de Guindos may contribute to lifting the Euro and maintaining stability for the EUR/USD pair. However, with minimal top-tier economic data expected, market sentiment remains a crucial factor influencing the pair’s movement.
The EUR/USD pair hovers near 1.1037, experiencing marginal setbacks amidst subdued trading conditions. The Federal Reserve’s favored inflation metric, the Core PCE, exhibited a 3.2% year-on-year growth, slightly under the anticipated 3.3%, further affecting the US Dollar’s stance. Conversely, ECB statements from President Christine Lagarde emphasized the bank’s data-dependent approach, dismissing market pressures. Eurozone outlook remained cautiously optimistic, with ECB Vice President Luis de Guindos highlighting a reluctance to alter monetary policy prematurely. As economic calendars lack major data releases, the EUR/USD trend hinges on prevailing market sentiment, potentially swayed by upcoming US Richmond Fed Manufacturing Index and Initial Jobless Claims reports, influencing near-term price movements.
On Tuesday, the EUR/USD moved slightly higher and tried to reach the upper band of the Bollinger Bands. Currently, the price moving slightly below the upper band, suggesting a potential upward movement. Notably, the Relative Strength Index (RSI) maintains its position at 64, signaling a neutral but slightly bullish outlook for this currency pair.
Resistance: 1.1042, 1.1138
Support: 1.0946, 1.0852
XAU/USD (4 Hours)
XAU/USD Holds Steady Above $2,060 Amid Dollar Weakness and Easing Speculations
In the early Asian session, Gold (XAU/USD) maintained its position above $2,060 despite a marginal 0.09% dip, set amidst a quiet trading week expected due to light volumes in the final stretch of 2023. The US Dollar weakened against its counterparts, pressing the US Dollar Index (DXY) to its lowest since July near 101.45. As Treasury yields edged lower, resting at 3.89%, expectations of Federal Reserve easing intensified, with the market pricing in potential cuts in January and fully anticipating cuts by March 2024. This dovish stance, alongside recent data showing a softer increase in the Core PCE, has positioned lower interest rates as a potential boon for gold, reducing its opportunity cost as a non-yielding asset. Geopolitical tensions in the Middle East, particularly Yemen’s threat to Red Sea shipping and Iran’s potential actions in the Gibraltar Strait, are adding pressure, potentially elevating gold’s safe-haven appeal. Traders are keenly observing the unfolding geopolitical landscape alongside upcoming economic indicators like the US Richmond Fed Manufacturing Index and Initial Jobless Claims.
On Tuesday, XAU/USD moved slightly higher and tried to reach the upper band of the Bollinger Bands. Currently, the price moving just below the upper band, suggesting a potential upward movement. The Relative Strength Index (RSI) stands at 62, signaling a neutral but slightly bullish outlook for this pair.
Resistance: $2,068, $2,088
Support: $2,048, $2,031
Written on December 27, 2023 at 2:51 am, by anakin
With no high-impact news expected, the market’s attention will be focused on the holiday season this week. Investor sentiment is likely to be influenced by holiday festivities, resulting in increased shopping activity and the investment of holiday bonuses. Additionally, the end-of-year period typically coincides with institutional investors going on vacation, leaving the market in the hands of comparatively bullish retail investors. This phenomenon, known as the Santa Claus rally, is expected to occur in the last week of December.
Holiday-related factors aside, here are several other medium-impact market indicators to watch for in the last week of 2023:
US unemployment claims (28 December 2023)
The number of Americans filing for unemployment benefits increased by 2,000 to 205,000 in the week ending 16 December, staying close to the 2-month low of 203,000 seen in the previous week.
Analysts expect a further rise to 207,000 in the week ending 28 December.
US pending home sales (28 December 2023)
Following a 1% rise in September 2023, pending home sales in the US dropped 1.5% month-over-month in October, marking the lowest level since records were first kept in 2001.
Analysts expect a 0.5% increase in the figures for November, set to be released on 28 December.
Written on December 26, 2023 at 1:35 am, by anakin
Thursday witnessed a strong comeback for stocks, with the S&P 500, Dow Jones, and Nasdaq rebounding significantly, nearing their record highs. Micron Technology’s stellar performance fueled tech stocks, while companies like Salesforce contributed to the climb. This turnaround followed a recent market dip attributed to profit-taking after a sustained period of gains. Meanwhile, the currency market saw the dollar index decline due to weaker U.S. economic data, impacting Treasury yields, while EUR/USD faced resistance and USD/JPY retreated within a defined range. Attention now turns to pivotal economic releases that could influence market dynamics, including the US core PCE and Japan CPI data.
Stock Market Updates
Stocks rebounded on Thursday after a recent dip, marking a robust resurgence in the year-end rally. The S&P 500 recovered from its recent decline, edging up by 1.03% to 4,746.75, inching within 1% of its closing high and 1.5% of its intraday record. The Dow Jones Industrial Average soared by 0.87% to 37,404.35, and the Nasdaq Composite surged 1.26% to 14,963.87. The market’s upward trajectory was widespread, with over 450 companies in the S&P 500 index witnessing gains. Micron Technology notably stood out, jumping by 8.6% following its quarterly performance surpassing expectations, bolstered further by an optimistic current-quarter guidance. Chip stocks broadly surged, with Intel and Advanced Micro Devices rising by 2.9% and 3.3%, respectively. Salesforce also contributed to the Dow’s climb, rising by 2.7% after receiving an upgrade from Morgan Stanley.
This upward swing followed a recent downtrend where Wall Street faced losses due to profit-taking after a streak of gains. The prior session marked the Dow and Nasdaq’s worst performance since October, breaking nine-day winning streaks, while the S&P 500 experienced its most significant decline since September. Rhys Williams, chief strategist at Spouting Rock Asset Management, attributed this shift to a technical correction following a robust market period. Since late October, the Dow and S&P 500 have surged over 15%, while the Nasdaq Composite saw an impressive 18% surge during the same period, reflecting a substantial upward momentum in the market.
On Thursday, across various sectors, the market showed a general upward trend with an overall increase of 1.03%. Consumer Discretionary saw the highest surge at 1.44%, followed closely by Health Care at 1.20% and Communication Services at 1.12%. Information Technology and Industrials also experienced notable gains at 1.08% and 1.06%, respectively. Meanwhile, Energy and Utilities demonstrated the smallest upticks, with Energy rising by 0.39% and Utilities by 0.13%. Real Estate and Financials fell within the mid-range increases, with Real Estate at 0.92% and Financials at 0.87%. Consumer Staples trailed behind with a rise of 0.69%.
Currency Market Updates
The currency market saw notable shifts as the dollar index declined by 0.4% due to weaker-than-expected U.S. economic data, impacting Treasury yields. Despite a solid 4.9% annualized GDP increase in Q3, downward revisions in GDP and core PCE figures influenced market sentiment. Core PCE rose only 2.0% year-on-year, signaling a potential downside miss, which could favor dollar bears. The upcoming release of November’s core PCE, income, and spending figures was highlighted as pivotal for Treasuries, risk, and the dollar, with indications pointing towards a possible downward trend in core PCE, impacting market dynamics.
EUR/USD observed a 0.4% rise, facing resistance near 1.1000 due to ongoing weak economic data and outlooks in the eurozone, particularly in Germany. USD/JPY, on the other hand, experienced a 0.8% fall, retracting all weekly gains but maintaining a recovery pattern within the 140.95-4.95 range following dovish meetings from both the Fed and BoJ. With the upcoming Japan CPI and U.S. core PCE releases, attention is on the 200-day moving average at 142.72, potentially signaling a retest of 140.95. Sterling saw a marginal 0.25% rise amidst a pessimistic UK CBI retail sales survey and below-forecast UK CPI, with further market focus on impending UK retail sales and Q3 GDP announcements.
Picks of the Day Analysis
EUR/USD (4 Hours)
EUR/USD USD Gains Ground Amid Dollar Weakness Despite Mixed US Data; Eyes on Inflation Figures
The EUR/USD edged higher, reaching the 1.1000 mark as the Dollar struggled despite increased Treasury yields. US economic indicators presented a mixed picture, with declines in the Philadelphia Fed Index and a revision in Q3 GDP, while Jobless Claims remained steady. Investors await the crucial Core PCE inflation data, anticipating a 0.2% rise for November. Despite the rebound in US yields, the Dollar remains subdued, limiting the EUR/USD upside potential amidst thinner market conditions.
On Thursday, the EUR/USD moved higher and reached the upper band of the Bollinger Bands. Currently, the price moving slightly below the upper band, suggesting a potential upward movement. Notably, the Relative Strength Index (RSI) maintains its position at 66, signaling a neutral outlook for this currency pair.
Resistance: 1.1017, 1.1138
Support: 1.0946, 1.0830
XAU/USD (4 Hours)
XAU/USD Resilient Above $2,040 Despite USD Swings Amidst Mixed US Economic Data
In fluctuating market sentiment driven by a resilient US Dollar and mixed economic indicators, spot Gold managed to maintain its position above $2,040 per troy ounce. The Dollar initially gained traction, favored by Wall Street’s lackluster performance and softer Treasury yields, but a shift in direction followed mixed US data. Despite GDP figures slightly below estimates and declining bond yields, investor confidence bounced back on Wall Street. With attention now turning to upcoming US economic releases, including the Core PCE Price Index and Michigan Consumer Sentiment Index, Gold remains resilient amidst the market’s uncertain landscape.
On Thursday, XAU/USD moved slightly higher and reached the upper band of the Bollinger Bands. Currently, the price moving just below the upper band, suggesting a potential upward movement. The Relative Strength Index (RSI) stands at 63, signaling a neutral outlook for this pair.
Resistance: $2,050, $2,068
Support: $2,031, $2,008
Economic Data
Currency
Data
Time (GMT + 8)
Forecast
GBP
Retail Sales m/m
15:00
0.4%
CAD
GDP m/m
21:30
0.2%
USD
Core PCE Price Index m/m
21:30
0.2%
USD
Revised UoM Consumer Sentiment
23:00
69.4
Written on December 22, 2023 at 1:21 am, by anakin
