Weekly Market Update 4-16-23
· Market News · MarketsFN Team
Positive weekly performance for US indices , Nasdaq rose 0.29% while the S&P 500 gained 0.79%. The Dow Jones rose by 1.20% during the week and closed on Friday at 33,886.47, losing -143.22 points (-0.42%) during the Friday session.
Optimism was higher in Europe, as major stock gauges reached a 2023 record high, or in case of the CAC40, an all time high at 7,519. 61. Fresh 2023 high also for the Nikkei 225, which closed last Friday at 28,493.47, up +336.50 (+1.20%). New Governor of Bank of Japan Kazuo Ueda most probably would adopt a pragmatic but also a very careful approach unique to the structure of the Japanese economy, thus at the moment is more likely a dovish message that is adding bullish pressure to an international intermediate positive sentiment.
In the FX market EUR/USD made a cup and handle technical formation, where a consolidation above 1.1080 would likely increase buying pressure to 1.1175 in the short term. While a retracement near 1.09 would be also an interesting long entry point, SL should be not too large since 100 pips below the rate could have more selling pressure. The key level in case selling pressure on the greenback would continue is 1.1270. the 61.8% resistence of the Fibonacci retracement of the bearish leg started on January 2021 and ended on September of the last year.
The US dollar could gain ground only against NZD and JPY.
XAU/USD is less than 100$ distant from area 2,070 $/oz, an all time high zone. A bullish leg above this area will likely bring new momentum, or it will be a triple top with a sharp reversal. Quite unlikely a trading range as near relevant price levels volatility rises, creating large shadow in candlesticks and increasing as well body of the candles. A deleveraging would be prudent.
Next week market appetite will depend on 2 major drivers: speculation on the next Federal Reserve move and corporate earnings. While the next FOMC meeting will be held on May 2-3, the earning calendar would provide some useful input on the resiliency of the US economy with several heavyweights reporting on Tuesday ( J&J, Goldman, Bank of America), Wednesday (Tesla and Morgan Stanley) and on Friday (Procter&Gamble).