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- Daily Market opportunity - 9 March 2021
Eyes turned to EU, after Japanese missing GDP
The day started with weaker than expected GDP data in the first trading hours, which sent JPY 30% lower, while Nikkei 225 was indifferent and gained 0.63%. We have to remember that higher rates, which come after more optimism in the markets, still will support the equity prices, especially commodity-based stocks, and Japanese 225 is mostly based on that.
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Today and after weaker Japanese data, eyes turn to EU, with EZ GDP, Germany's Trade balance, and French NFP. Mexican CPI for Peso Traders and EIA Short-Term Energy Outlook for Oil and Gas traders must be in the spotlight during the American season.
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Intraday Trading:
Based on the news and events, EUR, JPY, and Oil crosses must be more focused, while more fears from higher inflation can bring the safe-haven metals back into the spotlight.
EURJPY: After 6 days down trading to lower prices, stochastic has a reversal signal while CCI also returning higher from lower than -100 level. On the other hand, EZ GDP is expected to push the pairing to higher prices, while we do not have enough market mover for GBP today.
CADJPY: Higher WTI prices with lower JPY in past weeks sent the paring to the highest level since July 2018. Currently, correction signals by technical indicators like CCI and RSI are clearly seen, while MACD histograms also decrease. WTI will be a bit more in pressure while more doubt coming into the market with inflation fears, which will cause lower CAD and a downtrend for the pairing.
XAUUSD: Correction to higher price with fears of higher inflation is more expected than currently downtrend continuing. PP at 1692 is a key level to decide for the yellow metal. Above this level, R1 at $1705 will be in the spotlight, higher and lower than this level, needs more signals from the market. On the other hand, more optimism signals and a bigger than expected jump in EZ GDP can put the S1 at 1688 in the target.
Continued pressure on tech-stocks: In the stock market, what most we can bet on, is the pressure on heavy tech stocks, which many believe in their overpriced shares. So, carefully sell position for them is more likely than buying.
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