The stock market growth had stalled by the end of the week. Friday's profit-taking could save EUR and GBP from the further decline.
Stocks
The S&P 500 futures lost 0.6% from their peak levels earlier in the week. China A50 Index is losing ground throughout the week, dropping more than 5% erasing earlier April growth. As an additional warning sign, one should consider a turn to the growth of the VIX index. Also known as the fear index, this indicator increased over the week by 10% to 13.50. Growth from levels around 10 in recent years has often become the first sign of a subsequent deep correction.
EURUSD
The pair has continued to decline on Thursday, showing intraday lows near 1.1117. These are the lowest levels since mid-2017. The target of the bears may be the lower limit of the downward channel, which is currently passing through 1.1080. At the same time, a corrective pullback of EURUSD in the form of a careful profit taking after an impressive dynamic during the week cannot be ruled out.
GBPUSD
The British pound received support near the 1.2900 level. The CBI strong retail sales estimates provided support for the currency. As in the case with the euro, the pound was helped by players' desire to close part of their positions on Friday before the weekend. At the same time, the medium-term technical picture remains unfavourable for the pound, which broke the uptrend and fell below the MA(200).
Gold
Demand for defensive assets allowed gold to show a rebound in the second half of the week from the level of support of the downward channel. In case of increasing pressure on the markets, the gold bulls may turn to 1290 levels against the current 1282. Higher growth will question the current downtrend and could potentially open the way to 1300. However, according to the technical analysis, the likelihood of further reversal seems to be more likely, with potential targets for bears around 1250, where MA(200) passes.
Trade Responsibly. CFDs and Spread Betting are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.37% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider. The Analysts' opinions are for informational purposes only and should not be considered as a recommendation or trading advice.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.