Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ” .

Please note the specific adjustments as follows:

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Daily Market Analysis

Market Focus

Technology companies led a rebound in U.S. equities on Thursday after a report showing U.S. stocks were mixed after investors were whipsawed in part by volatile trading in high-risk assets such as Bitcoin amid lingering concerns about the outlook for inflation. Oil rose for the first time in four trading sessions.

The S&P 500 closed little changed after erasing earlier gains when Philadelphia Fed President Patrick Harker said the central bank should speak about reducing bond buying sooner rather than later. The tech-heavy Nasdaq 100 finished lower, while the Dow Jones Industrial Average gained as investors shifted from growth to value favorites such as Boeing. Bitcoin resumed its selloff Friday after China reiterated a warning that it intends to crack down on cryptocurrency mining as part of an effort to control financial risks.

European shares climbed earlier on prospects of easing lockdowns and as services data signaled a recovery. Asian shares were mostly higher, although they slipped in China.

China has long expressed displeasure with the anonymity provided by Bitcoin and other crypto tokens, and warned earlier in the week that financial institutions weren’t allowed to accept it for payment. China is home to a large concentration of the world’s crypto miners, programmers who use massive computing power to verify transactions on the blockchain.

The global economic revival, the risk of a significant pickup in inflation and Covid-19 flareups in some parts of the world continue to shape market moves. Stocks have been volatile this week, with speculative ardor cooling as minutes from the latest Fed meeting flagged the possibility of a debate at some point on scaling back stimulus measures. Still, better-than-forecast jobless claims data on Thursday buoyed sentiment.

Main Pairs Movement:

The dollar outperformed its Group-of-10 currency peers Friday as a gauge of output at U.S. manufacturers and service providers set a record in May, reflecting strength in the economic recovery. The euro retreated from a key level as investors cut long positions. Treasury yields were little changed, and the dollar gained. Gold dropped from its highest level in more than four months.

Among G-10 peers, the krone was the weakest and is on track to be the worst performer this week; the pound topped all this week, while the loonie was poised for a seventh straight weekly advance, the longest run since September. USD/CAD +0.1% at 1.2077; poised for a weekly drop of 0.2%.

USD/JPY +0.2% to 108.95; pair still heading for weekly drop of 0.4%; spike in activity after U.S. Markit PMIs; pair tracking Treasury yield-curve flattening.

Bitcoin is heading into the weekend in freefall again after a fresh warning from Chinese officials over cracking down on cryptocurrencies.

The largest digital currency fell as much as 10% in late Friday trading to as low as $35,636, and peer tokens also posted double-digit losses. The coin almost hit $30,000 earlier in the week, after ending May 14 at $49,100.

Technical Analysis:

EURUSD (4 hour Chart)

After moving upside bounder near 1.223 in the earlier trading session, the euro fiber cap under bearish stress and hiting the daily low of 1.217, slightly back up way, trading at 1.2184 as of writing. The sheen greenback upward strength amid HIS Markit reported on Friday, the business activities in the private sector expanded at a record setting pace in May with the Manufacturing PMI and Service PMI that both reach to a sanguine high at 61.5 and 70.1, respectively. Meanwhile, German PMI data missed the estimation of 65.9 versus publish 64. For technical aspect, RSI indicator set around 47 figures which shows market sentiment turn to slightly-bearish moementum. On average price view, 15-long SMA indicator turn it way to southside while market continued choppy in a range and 60-long SMA retained upside slope yet turn flat move.

As we mention in recently, euro seems fail to defended the 1.22 level as it keep mess around in confined range. On the other hands, RSI indicator and short term moving average are both show a weakness of buy side momentum. Moreover, in price action aspect, euro fail to build a sideway comfort support area; instead, form a double head pattern.

Resistance: 1,22

Support: 1.2151, 1.2106, 1.207

GBPUSD (4 Hour Chart)

Sterling retreadted sharply after touched 1.4233 the highest level since Feb, dropped to nearly day lows at 1.4156 amid dollar hype to 90 threshold as the highs across the board. The benchmark of U.S. 10 years Treasuries yields move tiny changed in the day while the performance of U.S. eco data shows mixed as positive in PMI and home sales fail to estimation. Nevertheless, tri-PMI data shows strong economy performance in recent, still could not thrive the market to upside. For RSI side, indicator shows 40 figure which nearby a neutral market movement after sterling sharply slum. On the other hands, 15-long SMA indicator remain smooth move and 60-long SMA indicator remaining a ascending movement.

At the moment, pound seems looking again to 1.42 level while await to further buy-in demand for bullish boost up. For price action, we believe pound could still roam between first resistance and support level. In addition, if pound could breakthrough 1.42 level, it could see further gains to higher stage.

Resistance: 1.42

Support: 1.3959, 1.4, 1.4108

XAUUSD (4 Hour Chart)

Gold extended it consolidative sideways price action throughout the European session and remained confined in a limited range, slight above 1875 stage, trading at 1879.7 as of writing. For moving average side, 15-long SMA indicator retained it slope to upside trend and 60-long SMAs indicator retaining it north side momentum. For RSI side, inidcator show 58 figures, suggesting a room for up way in forthcoming.

At current stage, gold try climbed to closer multi-month perch while seems lack of a bull momentum, however, it jumped to 1888 level in earlier session. We still believe gold market is eyeing $1900 mark, wating for follow-through buying stimulation. For long perspective, we still believe downside trend will be a pivotal support level. Furthernore, we hope the 1850 level could firmly defend if any upwind move.

Resistance: 1900

Support: 1850, 1812.88, 1800, 1763.837

Economic Data

Daily Market Analysis

Market Focus

Technology companies led a rebound in U.S. equities on Thursday after a report showing applications for state unemployment insurance fell last week to a fresh pandemic low rekindled optimism in the economic recovery.

The Nasdaq 100 Index jumped to a two-week high, with gains in megacaps including Apple Inc., Microsoft Corp. and Tesla Inc. powering the advance. Tech stocks rose the most in the S&P 500 as all of the major industry groups moved higher. Ford Motor Co. rose for the first time in three sessions on plans to create a joint venture to manufacture electric-vehicle batteries in the U.S.

The latest jobs report comes after mounting concern that faster inflation will prompt authorities to ease back on stimulus has weighed on risk assets in recent sessions. Minutes from the Federal Reserve’s last meeting showed some officials were open to a debate at “upcoming meetings” on scaling back bond purchases if the U.S. economy continued to progress rapidly.

Thursday’s rally pushed the tech-heavy Nasdaq 100 above its average price for the past 50 days. That level is a key trend indicator for traders and has proven to be a buy signal in past rebounds.

Main Pairs Movement:

Cryptocurrencies pared gains after the U.S. Treasury Department called for stronger tax compliance. Bitcoin, which whipsawed investors with huge price swings on Wednesday, was up less than 5% at 4 p.m. in New York after climbing as much as 11%.

Oil extended declines to a three-week low after Iran’s president said the broad outline of a deal to end sanctions on its oil had been reached. Yields on 10-year Treasuries fell as the dollar weakened.

Commodity currencies advanced as traders faded Wednesday’s dollar bounce that came from the latest Federal Reserve minutes. It had advanced on Wednesday after April’s Fed minutes showed some officials indicated a willingness to discuss a tapering of bond purchases.

AUD/USD rose 0.2% to 0.7745, holding onto gains even after a miss in the April employment report.

Technical Analysis:

EURUSD (4 hour Chart)

Euro dollar shrugged off the Wednesday’s FOMC-inspired losses that traveling to higher during the U.S. session, trading above 1.22 threshold at 1.2227 as of writing, as much as .48% gains in the day. Meanwhile, greenback has loss the upper traction as U.S. shares market risk sentiment improve and eco data manifest mixed. For technical aspect, RSI indicator set around 65 figures which shows there still have a room for upper way. On average price view, 15-long SMA indicator is ongoing ascending trend in day market after it euro aimed to higher stack and 60-long SMA retained upside slope.

As we mention in recently, we remain our upside expectation as it continued to hold buy-side demand, defended in few vital support as well. At the same time, we expect euro dollar is architecting a comfort zone for further bullish momentum. Since, we deem the first immediately support level is at 1.22, 1.215 following. On contrast, we consider there has a psychological resistance at 1.225~1.226 around.

Resistance:

Support: 1.22, 1.2151, 1.2106, 1.207

GBPUSD (4 Hour Chart)

Pound bounced up from yesterday gloomy movement and traded in nearly high level around 1.42 as demand for the dollar receded, trading at 1.4185 as of writing. The improvement in risk appetite weighed on the U.S. dollar fell. The DXY index has fallen to 89.78, remaining the near lows, heading to May’s low. For RSI side, indicator shows 62 figures, suggesting a room for upper side. On the other hands, 15-long SMA indicator remain smooth move after jumped higher in the day and 60-long SMA indicator remaining a ascending movement.

At the moment, pound seems looking again to 1.42 level while await to further buy-in demand for bullish boost up. For price action, we believe pound could still roam between first resistance and support level. In addition, if pound could breakthrough 1.42 level, it could see further gains to higher stage. On the other hands, the Kingdom will unveil leading eco data as PMI figure, expecting a fluctuation move ahead.

Resistance: 1.42

Support: 1.3959, 1.4, 1.4108

XAUUSD (4 Hour Chart)

Gold was traded at higher place with $7 gains in the day as the U.S. dollar falls away weighed by shrink U.S. yields and ends with U.S. shares market better-bid, trading at 1876.8 as of writing. Meanwhile, In the U.S. calendar side, Initial Claims rose less than expected and Philly Fed index missed the estimates at 31.5 figures for the month of May.For moving average side, 15-long SMA indicator retained it slope to upside trend and 60-long SMAs indicator retaining it north side momentum. For RSI side, inidcator show 61 figures, suggesting toward to bullis market in short term.

At current stage, Gold seems to heading the challenge of three-month highs despite U.S. central bank’s tapering delimma. Overall, we see gold has steadied above downside trend after recent days spiral. For long perspective, we still believe downside trend will be a pivotal support level. Furthernore, we hope the 1850 level could firmly defend if any upwind move.

Resistance: 1900

Support: 1850, 1812.88, 1800, 1763.837

Economic Data

Daily Position Report

PNL Changed (System Time 5/19 00:00- 5/19 23:50) Total PNL During the Day

Clients’ gains were around 2.437 M ten mins ahead of the EOD.

Intraday Client PNL

Clients Profit

Clients Loss

Client Net Position

BOOK Exposure & Top PNL at EOD

Market Focus

U.S. stocks closed mixed and Treasury yields rose as minutes showed Federal Reserve officials were cautiously optimistic about the U.S. recovery at their April meeting, with some signaling they’d be open “at some point” to discussing scaling back the central bank’s massive bond purchases.

The S&P 500 fell for a third day, and 10-year Treasury yields jumped to session highs following the release. Energy and raw-material stocks fell the most as commodities prices tumbled amid mounting concern about inflation and potential curbs on monetary stimulus. The Nasdaq 100 notched a small advance, boosted by late-day gains in tech stocks including Facebook Inc. and Alphabet Inc.

At its worst moment, Bitcoin dropped about 30% to within a whisker of $30,000. It pared that decline to about 8% by 4 p.m. New York time. Other cryptocurrencies held double-digit percentage losses, pressured in part by a Tuesday statement from the People’s Bank of China reiterating that digital tokens can’t be used as a form of payment.

Stocks have lost steam in recent sessions, with pricier sectors such as technology tumbling on worries about inflation and a Covid-19 resurgence in some countries. While policymakers have signaled, they intend to maintain an accommodative stance for some time to come, traders will parse the Fed’s minutes for clues about the outlook. The Bloomberg Commodity Index, which touched a nine-year high last week, fell for a second day as oil, copper, soybeans and almost every other futures contract linked to industrial and agricultural staples retreated.

Main Pairs Movement:

A gauge of the dollar’s strength halted a four-day loss as traders awaited minutes of the Federal Reserve’s April meeting for clues on its next policy move.

The euro climbed to the highest since January and funds already long the currency left buy stops above the Feb. 25 high of 1.2243 to add to their positions, traders said. USD/JPY bounced off residual buy orders carried over from the New York session above 108.80, according to other traders.

The Norwegian krone and the euro gained the most among Group-of-10 currencies while the New Zealand dollar fell. USD/NOK dropped 0.2% to 8.2118; NZD/USD retreated 0.3% to 0.7228.

Technical Analysis:

EURUSD (4 hour Chart)

Euro fiber sharply slipped with the initial market reaction to FOMC Minute, fell from day high at 1.2245 level to nearly day lowest spot, trading at 1.2173 as of writing. FOMC’s April meeting showed some policymakers are concerned about rising inflation in near term, provide a boost to the greenback. For technical aspect, RSI indicator retreat from overbought territory that shows 51 figures, which suggest a neutral momentum for short run. On average price view, 15-long SMA indicator is ongoing ascending trend in day market after it euro aimed to higher stack and 60-long SMA retained upside slope.

At the moment, we expect market will remain bull movement in further if euro fiber could hold above 1.2151 level. Meawhile, it also focus on ECB President Largarde speaking tomorrow that could give market a direction and policymaker favor for upcoming euro movement. Moreover, euro need to be defend the 50 level of RSI indicator to ensure that market remain long-side momentum.

Resistance: 1.22

Support: 1.2151, 1.2106, 1.207

GBPUSD (4 Hour Chart)

Sterling retreated from perch to fresh lows after Fed’s hawkish statement in FOMC minute while down nearly .47% in the day and traveled to day low bound, trading at 1.4116 as of writing. Some officials saw taper talk starting at upcoming meeting and schedule but note that the economy still have a gap from they goals. For RSI side, indicator shows 45 figures after plummet, suggesting a slightly-bear market ahead. On the other hands, 15-long SMA indicator start turn flat move after overwhelming and 60-long SMA indicator remaining a ascending movement.

As price action demonstrate, it seems fail to defend the 1.42 level as dollar strong boost up, moreover, sterling sentiment has slipped to bearish side. Therefore, we need to see the first support level could be defended. If market momentum could shoaring up the first support level, we expect it could roam between first resistance and support level. If market consecutive fell, we expect market would test the psychological suppport level at 1.4.

Resistance: 1.42

Support: 1.3959, 1.4, 1.4108

XAUUSD (4 Hour Chart)

Gold traveled with sightly change in the day market after dollar index jumped higher over 90 which aimed to FOMC hawkish meeting result that scared market, while U.S. 10 years Treasuries yield flare up to nearly months high. On the other hands, crytocurrencies market went extremely volatility due to regulatory worry which lead market transfer fund to gold market with risk-off flow. For moving average side, 15-long SMA indicator retained it slope to upside trend and 60-long SMAs indicator retaining it north side momentum. For RSI side, inidcator shows 59 figures after it touch once over bought territory, suggesting slightly-bull market move at current stage.

Overall, we see gold seems steady above downside trend after choppy move in the day market. For long perspective, we still believe downside trend will be a pivotal support level. Furthernore, we hope the 1850 level could firmly defend if any upwind move.

Resistance: 1900

Support: 1850, 1812.88, 1800, 1763.837

Economic Data

Daily Market Analysis

Market Focus

U.S. stocks declined for a second day with losses steepening in the final 15 minutes of trading as investors weighed the rush to reopen the economy against inflationary pressure from a rise in commodity prices.

All three of the main U.S. equity benchmarks closed lower after mega-cap technology stocks including Amazon.com Inc., Microsoft Corp. and Alphabet Inc. erased earlier gains. Nine of the main 11 S&P 500 industry groups declined, with energy stocks leading losses as oil prices dropped amid a report that significant progress has been made to revive the U.S.-Iran nuclear deal. AT&T Inc. plunged the most in the benchmark gauge after the company said it plans to spin off its media operations. Walmart Inc. rallied the most in six weeks after boosting its profit outlook.

Stocks have been volatile after touching a record in early May as investors assessed economic growth prospects against a Covid-19 resurgence in countries including India. Minutes from the latest Federal Reserve meeting, due Wednesday, may offer clues on inflation pressure and hints of a timeline for tapering stimulus. Fed Vice Chair Richard Clarida said Monday that the weak U.S. jobs report showed the economy had not yet reached the threshold to warrant scaling back asset purchases. Inflation concerns intensified last week when the government reported the fastest increase in consumer prices since 2008 and commodities from iron ore to Brent crude rose to multiyear highs.

Main Pairs Movement:

A gauge of the greenback’s strength declined to near its lowest level in four months as risk sentiment was buoyed by comments from a Federal Reserve official that played down the risk of policy tightening. New Zealand’s dollar outperformed the Group-of-10 currencies.  

The kiwi was driven by corporate demand that lifted it past option-related offers near 72.25 U.S. cents, according to Asia-based FX traders. The Aussie and pound gained after buy stops were triggered, the traders said.

West Texas Intermediate crude extended declines after the BBC Persian news channel, citing Russian diplomat Mikhail Ulyanov, reported that a major announcement may be made on Wednesday regarding talks to broker an agreement between Iran and the U.S. and revive the 2015 nuclear deal. A return to the accord could allow for the removal of U.S. sanctions on Iran’s crude exports and bring more supply to the market.

Elsewhere, Bitcoin fell to the lowest since February after the People’s Bank of China reiterated that the digital tokens cannot be used as a form of payment. Coinbase Global Inc. fell after Monday’s drop below the reference price used in its April direct listing.

Technical Analysis:

EURUSD (4 hour Chart)

Euro fiber soar up to two-month high at 1.2225 level on Tuesday and set a flat move during the U.S. session, as of writing, pair went up 0.6% in the day at 1.2225 and awaiting to EU inflation data tommorrow. Euro vast gains amid greenback struggle to find the upside momentum while it free fall to 89.69 level which the lowest point since Feb. Moreover, U.S. shares market went down that without safe-parking demand to dollar, U.S. 10 years Treasuries yield slightly changed. For technical aspect, RSI indicator shows 72 figures, which suggest a overbought sentiment in short term. On average price view, 15-long SMA indicator is ongoing ascending trend in day market after it euro aimed to higher stack and 60-long SMA retained upside slope.

As price action at current stage, we think market is ongoing track the bull side as it stand above 1.22 level. However, we need to see what ECB will do after inflation data released.

Resistance:

Support: 1.22, 1.2151, 1.2106, 1.207

GBPUSD (4 Hour Chart)

Sterling retreated from 1.42 level after once advanced to multi-month highs at 1.422. Nevertheless, Sterling surged up to higher stack that breakthrough where we thought is a critical level at 1.4155 in short run, trading at 1.419 with 0.4% gains in the day market. At the meantime, the Kingdom unveiled the ILO unemployment rate for the three months to March, which shrank to 4.8% beat 4.9% expected. For RSI side, indicator shows 66.2 figure after it exceeded over bought area in Asian session, suggesting a bullish momentum at current stage. On the other hands, 15-long SMA indicator remaining north side and 60-long SMA indicator remaining a ascending movement.

Overall, we expect sterling will test 1.42 level again that long-holder to see if strong enough for the bull momentum. Therefore, we see it first immediately support level would be 1.4 around for long-favour.

Resistance: 1.42

Support: 1.3959, 1.4, 1.4108

XAUUSD (4 Hour Chart)

Gold retreated from months perch level at 1875 level, it still extended the days victory to higher stage amid risk-on mood while it remain balance above downside trend, trading at 1870 as of writing. Meanwhile, greenback slipped to nearly year-long nadir after some Fed official reiterated that they will maintain the current ultra-eaing monetary policy regardless of the pickup inflation. For moving average side, 15-long SMA indicator retained it slope to upside trend and 60-long SMAs indicator retaining it north side momentum. For RSI side, inidcator shows 68 figures after it landing in over bought territory, suggesting bull market move at current stage.

As we mention yesterday, we still need to be patient to affirm whether it could stand firmly above the multi-month-long downside trend as yellow line. Morever, market has bought-in the expectation of substantial and widespread inflation but gold seems just creep up to sod far. Therefore, we still need the upside risk and further long-side moementum.

Resistance: 1900

Support: 1850, 1812.88, 1800, 1763.837

Economic Data

Daily Market Analysis

Market Focus

U.S. stocks fell for the first time in three sessions and the dollar weakened as investors mulled risks to the economic outlook including inflation and a spike in Covid-19 cases in parts of the world.

Technology and communication services led the benchmark S&P 500 into the red, while energy shares rose. Apple and Microsoft weighed on the tech-heavy Nasdaq 100. Semiconductor stocks continued to be under pressure, with the Philadelphia Semiconductor Index dropping as low as 10% from a peak in early April.

Bitcoin tumbled to as low as $42,133 before stabilizing after a volatile weekend that saw Tesla Inc. Chief Executive Elon Musk whipsaw prices with a series of tweets that touched on the energy usage of the cryptocurrency and whether he was selling. Coinbase Global Inc. fell to a record low and below the reference price used in its April direct listing. Gold climbed to the highest in more than three months.

Elsewhere, Oil edged up as rising optimism around a demand recovery in regions such as the U.S. offset Covid-19 flare-ups in parts of Asia.

Main Pairs Movement:

The greenback traded lower in modest turnover as U.S. economic optimism helped lift an index of commodity prices most in a month, boosting resource-related currencies including the Australian and Canadian dollars. The pound climbed for second day as U.K. economy reopens.

Federal Reserve Vice Chair Richard Clarida said during a webinar that weaker-than-expected April payroll report shows “we have not made substantial further progress” on the central bank’s goals for employment and inflation laid out as thresholds to begin scaling back the central bank’s massive monthly bond purchases.

Concerns that policy makers may have to pull back support sooner than expected to quell rising inflation have weighed on global equities. Investors this week will parse the minutes from the Federal Open Market Committee’s latest meeting for any discussion about accelerating price pressures, and hints of a timeline for reducing asset purchases.

USD/CAD falls as much as 0.4% to 1.2061, on pace for lowest close in six years; eyes the YTD low of 1.2046. Loonie gains supported by rising WTI oil prices and gold; the Bloomberg commodity index jumps 1.4%, biggest gain in a month.

USD/JPY remains lower, trades -0.2% at 109.19; bids anticipated beneath 109.00 while macro-offers are placed around 109.50, according to traders.

Technical Analysis:

EURUSD (4 hour Chart)

Euro fiber pair end Monday little change around 1.2157. A scarce macroeconomic news and fading risk-appetite maintained pairs at the upper end of it slightly range. For technical aspect, RSI indicator shows 59.4 figures, which suggest a bullish momentum sentiment. On average price view, 15-long SMA indicator is ongoing ascending trend in day market after it euro slightly upper change and 60-long SMA turned slightly upside slope.

As price action at current stage, price momentum seems ongoing with gain traction in recently days, expecting market could testing next psychological level at 1.22 if 1.215 could hold and remain bull.

Resistance: 1.22

Support: 1.2151, 1.2106, 1.207

GBPUSD (4 Hour Chart)

Sterling rose to nearly day high for the second day in a row and recently which printed the fresh high at 1.414 level, boosted by fell dollar and also by a retreat in EUR/GBP. During the U.S. session the dollar lost momentum and pulled back, even as three main U.S. shares market under pressure. Sterling was supported by fix-related buying and improved risk tone following comments by BOE Vlieghe on stimulus; 1.4237 is the YTD high in February. For RSI side, indicator shows 64 figure, suggesting a bullish momentum for short run. On the other hands, 15-long SMA indicator turn slope to north way in the day and 60-long SMA indicator remaining a ascending movement.

All of all, sterling has successfully breached over 1.41 level to challenging last time high at 1.4155. Moreover, we see there still have a room for upper stage as bullish momemtun retained in relative strong indicator. Therefore, we see first immediately resistance will on 1.4155 and 1.42 follow.   

Resistance: 1.4155, 1.42

Support: 1.3959, 1.4, 1.4108

XAUUSD (4 Hour Chart)

Gold consecutive two day gains to nearly multi-month high after it hover over 1.26%, trading at 1865.9, as U.S. share extended to day to day low and U.S. 10 year Treasuries yields had 1% upper gain. For moving average side, 15-long SMA indicator retained it slope to upside trend and 60-long SMAs indicator retaining it north side momentum. For RSI side, inidcator shows 71 figure, suggesting over bought sentiment at current stage.

As price action, we see gold has tried to penetrated multi-month downside trend. Overall, we await of gold whether could stand above downside trend solid for upside favor. For longer perspective, if it could stand above and not break below 1850, gold would head to 1900 level.

Resistance: 1900

Support: 1850, 1812.88, 1800, 1763.837

Economic Data

Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ” .

Please note the specific adjustments as follows:

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Daily Market Analysis

Market Focus

U.S. stocks rose and Treasury yields declined for a second consecutive day as more-tempered commodity prices helped allay concerns about inflation risks.

Energy and technology shares led the S&P 500, which tumbled Wednesday by the most since February. The tech-heavy Nasdaq 100 outperformed the broader index, suggesting a market recovery is gaining momentum, after a bruising week that saw gathering price pressures hit equities. Both indexes still finished the week in the red. An advance in European stocks was led by cyclical industries. MSCI Inc.’s Asia-Pacific share gauge advanced more than 1%.

Markets appear to be regaining their equilibrium at the end of their biggest retreat in 11 weeks, with the focus of the benefits of an economic rebound overriding worry about the negative side-effect of inflation, for now.

That may help to reinvigorate the reflation narrative of picking value shares tied to economic growth over pandemic stay-at-home favorites. Walt Disney Co. fell after results that showed a faltering in growth at streaming service Disney+.

Main Pairs Movement:

The dollar slid against all of its Group-of-10 currency peers as yields fell and data showed retail sales stalled, while consumer sentiment deteriorated unexpectedly as Americans grew increasingly concerned about inflation. Losses in dollar index may come with mid-month rebalancing.

The Federal Reserve’s policy is in a good place right now, said Cleveland Fed President Loretta Mester, while playing down signals from data that she warns will be volatile as the economy reopens.

Treasuries gained after a report showed U.S. retail sales stalled in April following a sharp advance in the prior month. The dollar remained weaker against all of its Group of 10 peers.

NOK/USD dropped as much as 1.5%, most since November. AUD/USD rose 0.7% to 0.7785 amid rising gold and oil prices and gamma-related activity. USD/CAD fell as much as 0.7%, the most since May 6, to 1.2081. Report showed Canadian wholesale trade rose 2.8% in March, beating estimates of a 1% advance.

Technical Analysis:

EURUSD (4 hour Chart)

Euro fiber is heading thereto daily high above 1.21 after the U.S. reported no change in April’s retail sales which is below 1% expected, trading at 1.2143 with 0.54% gains as of writing. In ECB monetary statement, phrase from the latest meeting noted the Governing Council did not discuss any tapering of the bond purchase programme. A positive assessment, however, came after members acknowledged that risks to the activity are now slightly tilted to the upside. For technical aspect, RSI indicator shows 61 figures, which suggest a bullish momentum sentiment. On average price view, 15-long SMA indicator is ongoing flat move in day market and 60-long SMA turned slightly upside slope.

According to price action, euro seems to poised to testing the 1.2151 level as a small-scale neckkine of last perch point like yellow range. As price movementum seems ongoing with gain traction, we expect market could penetrate 1.2151 level to next higher level. Therefore, for slide way, we stay tune in 1.2106 level which we deemed a first immediately support then 1.207 follow.

Resistance: 1.2151, 1.22

Support: 1.2106, 1.207

GBPUSD (4 Hour Chart)

Pound traded has teeny-tiny gains in the day market while is trading close to 1.41 level where settle at 1.40956 as of writing. Of course, day hovers bebefitting from the better market mood as global share market rejuvenated from recently bleak side that seems re-trigger risk-on mode in subtle. For RSI side, indicator shows 59 figure, suggesting a bullish momentum for short run. On the other hands, 15-long SMA indicator retain south side trend after yesterday hard land in the day and 60-long SMA indicator remaining a teeny-tiny ascending movement.

Overall the market move in day, pound once poised to testing 1.41 level but tun it head after fail to occupy the spot. In lights of recently perspective, we still foresee 1.4 level would be and have to be the strong support for bullish favour despite faltering movement. As move averaging manifest mixed way and comprehence before views, we expect market will high probability that stymie in range between first resistance and support. For longer interval, we foresee sterling could challenge 1.4155 level if market got fueled by buy-in demand.    

Resistance: 1.4155, 1.42

Support: 1.3959, 1.4

XAUUSD (4 Hour Chart)

Gold has rallied up to closer the multi-month perch since February which have a edge over in inflation period in terms of market consensus, trading at 1843.43 as of writing. Meantime, the ongoing downfall in the U.S. Treasuries bond yield failed to assist greenback to monetize on this week’s positive move which inspired by torrid U.S. CPI report. For RSI side, indicator continue rallied to higher stage, shows 64.46 figure which suggest a bull movement. For moving average side, 15-long SMA indicator turn it slope to upside trend and 60-long SMAs indicator retaining it north side momentum.

For current stage, we expect gold will toward to 1850 level to testing a bullish momentum and psychological resistance level. On down way, the most likely vital support could be 1800 and short run support level could be 1812.8 around as substantial price located in.

Resistance: 1850

Support: 1812.88, 1800, 1763.837

Economic Data

Daily Market Analysis

Market Focus

Stocks halted a three-day slide, with investors migrating to value from growth companies as signs of a strengthening labor market tempered inflation worries.

Industrial and financial shares led gains in the S&P 500, while energy producers joined a slump in oil. The tech-heavy Nasdaq 100 underperformed major equity benchmarks as Tesla Inc. slipped after Chief Executive Officer Elon Musk said the electric-car maker is suspending purchases using Bitcoin. In late trading, Coinbase Global Inc. sank as the biggest U.S. cryptocurrency exchange reported revenue below Wall Street estimates.

Confidence on an economic revival that’s reigned supreme amid continued Federal Reserve stimulus has been recently jolted. Data Thursday showed producer prices rose by more than forecast in April, and jobless claims fell. While some investors insist the surge in inflation is a one-off reopening burst, the broader markets are hedging against the possibility it may persist and force the central bank to take action.

Officials have been trying to drive home the message that they see inflation spikes this year as transitory, in contrast with heightened Wall Street concern about runaway prices. Increases above the central bank’s 2% goal should be temporary, but may last through 2022, said Fed Governor Christopher Waller.

The Fed tweaked its plans for buying Treasuries, keeping the monthly pace at about $80 billion but focusing more attention on securities maturing in seven years or longer.

Main Pairs Movement:

A gauge of the dollar’s strength stalled Thursday on the back of the biggest rally in two weeks, with traders weighing signs of a reopening economy against risk that higher inflation may persist. U.S. 10-year Treasury yields slid and the benchmark S&P 500 rose. 10-year Treasury yields slid to 1.67% as commodity prices eased.

Still, an index measuring the three-month implied volatility of the Bloomberg Dollar Spot Index retreated after reaching the highest since April; the Bloomberg Commodity Index fell.

Traditional haven currencies such as the Swiss franc and Japanese yen advanced as commodity-linked peers, such as the Canadian and Australian dollars slipped versus the dollar. USD/JPY slid 0.2% to 109.50; Pair may be supported by a substantial amount of short-dated forward hedging at the 109.58 spot equivalent level, DTCC data shows. AUD/USD rose as much as 0.4% to 0.7746, erasing an earlier loss.

The New Zealand dollar was among the day’s top-performing Group of 10 currencies amid better risk tone, though nearly NZD1.3b of 0.7260/70 strikes expiring May 18 may slow climb. NZD/USD jumped 0.3% to 0.7180 after earlier rising 0.5%, the most since May 7.

Technical Analysis:

USDJPY (4 hour Chart)

Japan yen remains struggling in in tiny way with consolidative movement throughout the day market, losses -0.14% while trading at 109.449 as of writing. Meantime, U.S. shares market comvalesced from yesterday bleak as initial jobless claim data beat expectation led greenback enact risk-on sentiment intraday. For technical aspect, RSI indicator shows 59 figures, which suggest a bullish momentum sentiment. On average price view, 15-long SMA indicator is ongoing upper slope in day market and 60-long SMA turned slightly upside slope.

According to price action, it seem yen built a comfort short term support in 109.45 arounn which is lowest point in the day. For long term views, we believe yen will go along with indicators momentum, namely, ratch up to higher floor. Therefore, the first immediately is on 109.45 and the critical support level will be 109.042.

Resistance: 110

Support: 109.45, 109.042, 108.37, 107.937

GBPUSD (4 Hour Chart)

Pound traded with stress below the recently low level as U.S. PPI rose 0.6% in April after surging to 1% in March. For YoY aspect, the PPI boom to 6.2% which is the biggest rise record since 2010. Pound trading at 1.4053 with withhold unmove in the day market. For RSI side, indicator shows 49 figure, suggesting a neutral momentum at this stage. On the other hands, 15-long SMA indicator retain south side trend after hard striked in the day and 60-long SMA indicator remaining a teeny-tiny ascending movement.

Overall the market move in day, pound once poised to testing 1.4 level but pull up after mire in the daily low. In lights of recently perspective, we still foresee 1.4 level would be and have to be the strong support for bullish favour despite faltering movement.

Resistance: 1.4155, 1.42

Support: 1.3959, 1.4

USDCAD (Daily Chart)

Loonie continue it bounced up trail which once achieved weekly high above 1.22 level then slightly retreated modestly, trading at 1.216 with up 0.24% as of writing. Bank of Canada Governor noted on Thursday that further loonie strength could impact policy decision. Meantime, WTI crude oil drop 3.51% in the day, industrial material wide-ranging retreat it upside traction as greenback missed bullish movement.

For RSI side, indicator continue rallied to higher stage, shows 56 figure which suggest a slightly-bull movement. For moving average side, 15-long SMA indicator remaining upside movement and 60-long SMAs indicator turn it slope to positive way.

As we mentioned recently, loonie successive it correction of bearish traction to higher level, yet, ubdermine the momentum after touched 60 SMA indicator. For currently, we expect market will extend it consolidation movement in range between 1.2264 and 1.2079.

Resistance: 1.2264, 1.238, 1.2491

Support: 1.2079

Economic Data

Daily Market Analysis

Market Focus

The S&P 500 Index slumped the most since February and bond yields jumped after a report showed inflation rose more than forecast, adding to concern that price pressures will stifle a recovery in the world’s biggest economy.

The technology sector continued to lead the retreat in equities, with Apple and Microsoft pacing a 2.6% decline in the Nasdaq 100. Cathie Wood’s ARK Innovation ETF resumed its slide, bringing this year’s loss to about 18%. After closing at a record high on Friday, the benchmark S&P 500 dropped 2.14%. Energy was the only one of the 11 industry sectors to finish in the green. Treasury yields surged the most since March.

The debate over whether inflation will be persistent enough to force the Federal Reserve to tighten policy sooner than current guidance suggests comes as abundant stimulus has powered a rally in global equities, raising concerns valuations had become expensive. Fed Vice Chair Richard Clarida said he was surprised by the rise in consumer prices and “we would not hesitate to act” to bring inflation down to its goals if needed.

The consumer price index increased 0.8% from the prior month after a 0.6% gain in March. Excluding the volatile food and energy components, the so-called core CPI rose 0.9% from March.

Elsewhere, the claim among advocates that Bitcoin is an inflation hedge appears to be in question after the CPI report. The digital asset slumped as much as 5.8% to around $53,600.

Main Pairs Movement:

The dollar advanced against its Group of 10 currency peers and 10-year Treasury yields surged after a report showed U.S. prices climbed in April by the most since 2009, testing the Federal Reserve’s message that accelerating inflation will prove transitory.

The Australian and New Zealand dollars fell the most among G-10 currencies as wider risk-off sentiment offset the exuberance in commodity markets. AUD/USD fell 1.4% to 0.7736, after dropping as much as 1.5% earlier, the most since March. The Aussie fell versus most major currencies as long positions taken prior to the government’s stimulatory budget were cut, according to Asia-based FX traders. NZD/USD slid 1.5% to 0.7164; pair earlier fell as much as 1.7%, the most since March.

EUR/USD slipped 0.6% to 1.2081; pair retreats after failing to close above 1.2175 and move to Feb. 25 high. The European Commission upgraded the euro area’s growth forecast for this year to 4.3% from 3.8% after taking account of the 800 billion euro ($971 billion) joint recovery fund for the first time

Technical Analysis:

USDJPY (4 hour Chart)

Japan yen break above 109.5 level amid higher U.S. 10 years Treasuries yields keep picking up while greenback gains upside momentum during the American session, reaching the highest level since May 3 where trading at 109.62 as of writing. As share market tumble, risk aversion sentiment contributes to the demand for the safe-haven currency. For technical aspect, RSI indicator shows 67.8 figures, which suggest a bullish momentum sentiment. On average price view, 15-long SMA indicator turn upper steep slope in day market and 60-long SMA turned slightly upside slope.

On price action, it’s obviously that yen has penetrated a downside resistance as yellow line in the char, moreover, price position has breached the last time high. Thence, we foresee market could challenge first resistance at 110 level if market could retain upside momentum. Meanwhile, U.S. 10 years Treasuries yields could also driven the yen direction with positive correlation in further market.

Resistance: 110

Support: 109.042, 108.37, 107.937

GBPUSD (4 Hour Chart)

Sterling turn head to south way after U.S. CPI beat estimates with 4.2% while Core CPI final with 3%. In earlier session, U.K. GDP released better-than-expectation figures with

-1.5%, fueled volatility. In the day market, sterling traded lower stage with loss 0.63% while trading at 1.40533 as of writing. For RSI side, indicator shows 49 figure, suggesting a neutral momentum at this stage. On the other hands, 15-long SMA indicator turn it slope to the south side after hard striked in the day and 60-long SMA indicator remaining a teeny-tiny ascending movement.

Overall the market move in day, sterling slipped which seems affected by risk-off mode that propel greenback demand. Moreover, it also digest strss of over bought sentiment in short term. For long perspective, we still optimistic for gain traction ahead if any correction could be defend before the neckline level on 1.4.

Resistance: 1.4155, 1.42

Support: 1.3959, 1.4

USDCAD (Daily Chart)

Loonie bounced up after reaching the lowest intraday level since 2015, trading at 1.21284 with 0.23% gains in the day. The U.S. 10 years Treasuries yields jumped to 1.695%, reaching the highest level in the month and challenged last time peak at 1.762% while global share market plummet. Meantime, WTI crude oil boost with nearly 0.6% in the day, industrial material wide-ranging retreat it upside traction as greenback climbed. For RSI side, indicator bounced back from over sought territory to 49 threholds where suggest a neutral momentum at current stage. For moving average side, 15-long SMA indicator turrn slope to acending way and 60-long SMAs indicator remaining it descending movement.

As we mentioned yesterday, loonie set a comfort support level as price cluster at 1.2079 around and day market has bounced up to recently-day high after testing the support level. We expect loonie is on the way of correction of downside traction in the short-run that kept a lid on rapidly appreciation stress in recently.

Resistance: 1.2264, 1.238, 1.2491

Support: 1.2079

Economic Data