Earnings season is a crucial time for investors and analysts, as it provides insights into how well companies have performed over the past quarter and gives indications of their future earnings. In 2023, expectations for US Q1 earnings were low due to economic challenges and rising interest rates. Surprisingly, many companies beat these low expectations, with 75% of S&P 500 companies surpassing forecasts.
Will fed save USD from further weakness?
2020-12-16 • Updated
Ichimoku Kinko Hyo
NZD/JPY: The pair is trading below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
XAG/USD: Remarkable strength for Silver. It seems so far that bulls control market
US Market View
The Federal Reserve winds up its last monetary policy meeting of the year, against a backdrop of low expectations for action, despite a visible slowdown in the economy under the influence of the pandemic’s latest wave. The Eurozone economy held up better than expected in December, despite the spread of lockdowns across the continent to contain the coronavirus. The Santa rally looks to have begun, with U.S. stocks set to build on Tuesday’s robust gains when the markets open later. Oil prices consolidated overnight, torn between optimism over the prospects of a U.S. stimulus package and concern at a surprise increase in U.S. inventories last week.
U.S. retail sales dropped in November and the prior month was revised to a decline, indicating the economic rebound is hitting bumps as coronavirus cases surge and lawmakers wrangle over a new stimulus package.
USA Key Point
- Bitcoin breaks above $20,000 for the 1st time ever
- GBPUSD is the strongest and the CAD is the weakest
- Merkel supports that Brexit trade talks to continue until the end of this week
- We have agreed to go ahead with planned Christmas relaxation supports UK prime minister
When I started trading stocks a few years ago, I often needed to pay more attention to my technical analysis skills and trust that the market would play fair according to my analysis. I have since discovered that the safer approach to trading stocks is to, more often than not, seek out investing opportunities - that is, catching stock commodities with a potential to rise.
The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations.
On Friday, the gold price (XAUUSD) retreated from a recent two-week high, facing selling pressure. This decline was driven by hawkish minutes from the FOMC meeting, indicating the Fed's reluctance to cut interest rates. Elevated US Treasury bond yields, supported by a "higher-for-longer" narrative, further weakened demand for gold...
Bearish Scenario: Selling below 22.65 with TP1: 22.34 (intraday) and TP2: 22.02 (swing). Bullish Scenario: Buying above 22.70 with TP1: 22.90.
Intraday and swing scenarios based on price action and volume profile.