fbpx

PU Prime App

Exclusive deals on mobile

  • Trading Knowledge

19 April 2024,06:25

Trading Knowledge

Strong NFP Bolsters The Dollar

19 April 2024, 06:25

Share on:
FacebookLinkedInTwitterShare
Share on:
FacebookLinkedInTwitterShare

Market Summary

The U.S. labour market’s vigorous expansion, with the Non-Farm Payroll (NFP) report disclosing an impressive 303,000 job additions that exceeded both previous results and projections, accentuated the U.S. economy’s resilience and amplified concerns over enduring high inflation. Consequently, the Dollar Index (DXY) experienced a resurgence as forecasts about the Federal Reserve’s proclivity for sustaining high-interest rates for a prolonged duration gained traction. This economic buoyancy was mirrored in the U.S. stock market, with all major indexes marking advances at Friday’s close.

Globally, financial markets are now setting their sights on New Zealand, where the Reserve Bank of New Zealand (RBNZ) is slated to make its interest rate decision on Wednesday. The prevailing market sentiment suggests that the RBNZ will hold the official cash rate steady at 5.5%, tempering earlier speculations of a potential rate decrease.

In the realm of commodities, gold reached a new peak before witnessing a pullback amid a reduction in Middle Eastern geopolitical tensions. Meanwhile, the onset of the week saw oil prices dropping more than 1% following news of an Israeli military downsizing in the Gaza Strip, indicating a partial troop withdrawal.


Current rate hike bets on 1st May Fed interest rate decision

Source: CME Fedwatch Tool

0 bps (85.5%) VS -25 bps (14.5%)  

Market Overview

market overview price chart 8 April 2024

Economic Calendar

(MT4 System Time)

N/A

Source: MQL5 

Market Movements

dollar index dxy price chart 8 April 2024

DOLLAR_INDX, H4

The Dollar Index exhibited robust bullish momentum, buoyed by an impressive US Nonfarm Payrolls report released by the Bureau of Labor Statistics. Nonfarm Payrolls exceeded expectations, soaring to 303K from the previous 270K, far surpassing projections of 212K. Concurrently, the US Unemployment Rate posted a favourable figure of 3.80%, beating forecasts of 3.90%. Consequently, market sentiment swiftly shifted, with the CME FedWatch Tool signalling diminished expectations of rate cuts in June, plummeting to 54.5%. This newfound confidence in the US economy propelled demand for the greenback, further bolstered by a surge in US Treasury yields.

The Dollar Index is trading higher following the prior rebound from the support level. MACD has illustrated increasing bullish momentum, while RSI is at 51, suggesting the index ight extend its gains since the RSI rebounded sharply from oversold territory. 

Resistance level: 104.60, 104.95

Support level:104.00, 103.65


XAU/USD gold price chart 8 April 2024

XAU/USD, H4

Gold prices experienced a notable retreat as investors reallocated their portfolios towards the US Dollar following the upbeat jobs report, which dampened expectations of Federal Reserve rate cuts. The strengthened dollar eroded the appeal of the precious metal, exerting downward pressure on prices. Despite this, lingering uncertainties prompted some investors to seek refuge in gold, mitigating losses. Attention now turns to the upcoming release of March’s consumer price inflation figures, with analysts anticipating a modest decrease in core inflation to 3.70% year-over-year.

Gold prices are trading lower while currently testing the support level. MACD has illustrated increasing bearish momentum, while RSI is at 51, suggesting the commodity might extend its losses after breakout since the RSI retreated sharply from overbought territory. 

Resistance level: 2325.00, 2350.00

Support level: 230500, 2295.00


GBP/USD price chart 8 April 2024

GBP/USD,H4

The GBP/USD pair encountered significant downward pressure last Friday following the release of the highly anticipated U.S. Non-Farm Payroll (NFP) data. The report revealed job figures that surpassed market expectations, signalling a robust labour market in the U.S. Despite this, the British pound managed to hold its ground against the strengthening dollar, finding support above the key psychological level at 1.2600.

GBP/USD has eased in its bullish rebound, but hovering above the 1.2600 mark suggests remaining trading with a bullish trajectory. The RSI has eased to near 50 level while the MACD is flowing flat, suggesting the bullish momentum has eased. 

Resistance level: 1.2660, 1.2760

Support level: 1.2540, 1.2440


EUR/USD price chart 8 April 2024

EUR/USD,H4

The EUR/USD pair has retreated from its recent bullish momentum, encountering resistance at the 1.0866 level. The strengthening of the U.S. dollar, supported by robust job data, has exerted downward pressure on the pair. However, market focus now shifts to the upcoming interest rate decision by the European Central Bank (ECB) scheduled for this Thursday. Traders are closely monitoring the ECB’s monetary policy statement, which accompanies the interest rate decision, as it could significantly influence the direction of the pair.

EUR/USD recorded a slight retracement in the last session but remains trading with its bullish trajectory. The MACD has crossed on the above while the RSI has dropped out from the overbought zone, suggesting the bullish momentum has eased. 

Resistance level: 1.0866, 1.0954

Support level: 1.0775, 1.0700


USD/JPY price chart 8 April 2024

USD/JPY,H4

The USD/JPY pair remains confined within a narrow sideways range, fluctuating between the 151.15 and 151.75 levels. Despite this range-bound movement, a recent uptick in the dollar’s strength on Friday has prompted a modest rebound in the pair, bringing it back towards its critical levels. Meanwhile, recent data showing a slight decline in Japanese overall wage income from 2% to 1.8% suggests that the Bank of Japan (BoJ) may maintain its current monetary policy stance, particularly after its first rate hike last month.

The USD/JPY pair continues to trade in a sideways pattern awaiting the pair to pick a direction. The RSI has rebounded to above 50 level and the MACD continues to flow closely to the zero line suggest the pair is trading with minimal bullish momentum. 

Resistance level: 151.85, 153.20

Support level: 149.50, 147.60


NZD/USD price chart 8 April 2024

NZD/USD, H4

The NZD/USD pair exhibited a recovery from its prior downward trend since the start of the previous week. Nonetheless, the resurgence of the U.S. dollar on Friday posed a challenge to the pair’s ascending momentum. With the Reserve Bank of New Zealand (RBNZ) set to make its interest rate decision imminently, market projections suggest that the central bank is likely to sustain its interest rate at 5.5%. Such a decision is anticipated to bolster the strength of the New Zealand dollar.

Despite the pair having slid in the last session, the pais remain trading with its bullish trajectory. The MACD is sliding while the RSI failed to break into the overbought zone, suggesting the bullish momentum is vanishing. 

Resistance level: 0.6050, 0.6100

Support level: 0.5950, 0.5895


dow jones price chart 8 April 2024

Dow Jones, H4

Despite the robust jobs report, US equity markets managed to stage a recovery, with investors engaging in bargain hunting following a recent downturn. The week concluded with major stock benchmarks averting a third consecutive weekly loss. Attention now shifts to forthcoming economic data, notably the Consumer Price Index (CPI) figures for March, which are anticipated to indicate a moderation in inflationary pressures. Additionally, market participants eagerly anticipate the commencement of first-quarter earnings season to evaluate the underlying strength of major US stocks and justify recent valuation increases. 

Dow Jones is trading flat while currently testing the resistance level. MACD has illustrated diminishing bearish momentum, while RSI is at 44, suggesting the index might extend its gains after breakout since the RSI rebounded sharply from oversold territory. 

Resistance level: 39150.00, 39855.00

Support level: 37700.00, 36560.00


crude oil price chart 8 April 2024

CL OIL, H4

Oil prices initially surged, supported by geopolitical tensions in the Middle East and concerns over supply constraints coupled with optimistic demand forecasts. Heightened geopolitical risks, particularly the escalating conflict between Iran and Israel, fueled apprehensions of potential supply disruptions, bolstering oil prices. However, gains were short-lived as the resurgent US Dollar dampened demand for the dollar-denominated commodity, causing prices to retreat. Market focus remains on geopolitical developments and their impact on global supply dynamics.

Oil prices are trading lower following the prior retracement from the resistance level. MACD has illustrated increasing bearish momentum, while RSI is at 45, suggesting the commodity might extend its losses since the RSI breakout below the midline. 

Resistance level: 85.75, 87.90

Support level: 83.05, 80.20

엣지 있게 거래 시작하기

업계 최저 스프레드와 초고속 실행으로 FX, 지수, 귀금속 등을 거래하실 수 있습니다!

  • 당사의 스탠다드 계좌는 최소 $50달러로 거래를 시작할 수 있습니다.
  • 24시간 연중무휴 고객지원
  • 수백 개의 거래 도구, 무료 교육 도구 및 최고의 프로모션을 누릴 수 있습니다.
지금 가입하기

Latest Posts

쉽고 빠른 계좌 개설

실거래계좌개설
  • 1

    회원가입

    몇 가지 간단한 과정으로 PU Prime의 실거래 계좌를 개설하세요

  • 2

    자금예치

    다양한 입출금 수단과 수용되는 통화로 손 쉽게 계좌에 예치할 수 있습니다

  • 3

    거래시작

    업계 최고의 거래 환경과 조건에서 수백 개의 상품을 거래하세요

Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.

Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.

By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.

Thank You for Your Acknowledgement!

Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.

Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.

Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.

Thank You for Your Acknowledgement!