Charting the markets: 10/1/24

(AI Video Summary)

Nikkei reaches 34-year high

In the Asian markets, the Nikkei 225 index has surged to an impressive 34-year high. This is because there is a belief that the Bank of Japan will continue with its current policy of keeping interest rates low. Meanwhile, European equity markets tried to recover from previous losses, but unfortunately, news of a slowdown in eurozone growth and a contraction in December caused some decline.

Awaiting UK GDP and US inflation data

Over in the UK, the FTSE 100 index is trading sideways as investors eagerly await the release of GDP data for the United Kingdom and inflation data for the United States. The hope is that these figures will provide a positive boost to the markets. As long as the FTSE 100 stays above its lowest point on Monday, there is the possibility of further gains.

Moving across to the US, the S&P 500 index experienced weakness last week but managed to rally on Monday. For the upward trend to continue, the S&P 500 needs to surpass the highs from Monday. In terms of currency trading, the US dollar has recovered some of its previous losses but is currently showing little movement. Volatility is expected to remain low until the release of US inflation data.

Forex analyses

Looking at specific currency pairs, the EUR/USD pair has been trading sideways but could potentially reach higher levels if it rises above its recent trading range. Conversely, if it falls below its uptrend line, there may be a further decline. The USD/JPY (大口） pair is slowly rising towards its next target, as long as it remains above its last reaction low. Similarly, the USD/CAD pair is attempting to break through its downtrend line and, if successful, could potentially reach higher levels.

Concerning commodities trends

In the commodities market, the price of oil has been quite volatile due to concerns about its supply. Likewise, corn futures are currently experiencing a downward trend, currently trading at three-year lows. As long as they remain below certain key resistance levels, there is a possibility of further declines. Lastly, orange juice futures contracts are also in a clear downtrend, falling below their 200-day moving average. It is expected that they will continue to decline as supplies and production increase.