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Daily NZD/USD Technical and Fundamental Outlook
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Introduction to NZD-USD The NZD/USD currency pair, often referred to as the “Kiwi,” reflects the exchange rate between the New Zealand dollar (NZD) and the US dollar (USD). This pair is popular in forex trading due to the interest rate differentials between the Reserve Bank of New Zealand (RBNZ) and the US Federal Reserve, as […]
The post Daily NZD/USD Technical and Fundamental Outlook appeared first on UnitedPips Ltd.
By: Jaxon Maddox
Posted on : Apr 10 2025
COT report: Hedge funds’ positioning ahead of Calamity Wednesday
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Key points:
- Our weekly Commitment of Traders update highlights futures positions and changes made by hedge funds across forex and commodities during the week ending Tuesday, 1 April 2025.
- The latest reporting week ended just ahead of last Wednesday, when Trump's aggressive tariff announcement sent global markets into a major downward spiral.
- In the forex market, a small USD long emerged, primarily driven by long liquidation in EUR, GBP, and CHF.
- Hedge funds focused on reducing risk ahead of Wednesday—especially across metals—with energy and Brent being a major exception.
- Weaker cyclical conditions, due to the heightened risk of a recession and retaliatory measures, may push the commodity complex lower in the short term, before several developments may re-establish support.
Forex:
In the forex market, speculators chose to reduce bets ahead of Trump's "Liberation Day," which instead turned out to become a "Calamity Wednesday," sending shockwaves across global markets, hurting the US dollar while sending stocks and bond yields sharply lower. Ahead of this historic event, the activity in the forex market across eight IMM forex futures resulted in the gross US dollar position versus eight IMM forex futures flipping back to a small net long of USD 1.2 billion. Seven of the eight currencies tracked in this saw net selling, led by long liquidation in EUR, GBP, and CHF. Ahead of the end-of-week market turmoil, net long positions remained in the JPY at USD 10 billion equivalent, EUR (USD 7 billion), and GBP (USD 3 billion), while the largest net short positions were in the CAD (USD -9 billion) and CHF (USD -6 billion).
Commodities:
The latest reporting week ended just ahead of last Wednesday when Trump's aggressive tariff announcement sent global markets, including commodities, into a major downward spiral on increased expectations that the president's announcements would trigger a global recession, leading to major repricing of demand expectations. In the days that followed, the Bloomberg Commodity Index, which tracks a basket of 24 major commodity futures, slumped 7.5%, almost wiping out the gains for the year. While the sector has still done a great deal better than the stock market, some significant losses, especially among the cyclical commodities like energy and industrial metals, have forced leveraged traders to minimize their exposures, in the short term exacerbating the declines, examples of which are a 17% decline in WTI crude oil, 14.5% in HG copper, and 13% in silver. Weaker cyclical conditions due to the heightened risk of a recession and retaliatory measures may push the commodity complex lower in the short term before support emerges in response to a renewed focus on tightening market conditions, especially across key industrial metals, lower prices killing supply growth, a weaker dollar, and stimulus support, especially in China but potentially also Europe. In addition, it is also worth noting that periods of stagflation—that is, when inflation and unemployment rise and growth slows—historically have proven to be price supportive for commodities, not least gold. With all these developments occurring after the latest COT reporting week, the latest update highlights which commodities were mostly exposed to the deleveraging move that followed. Energy: A 21% jump in the Brent crude net long left this contract particularly exposed to recession fears and the OPEC+ decision to accelerate production from next month, and together with net buying of diesel and gasoline, the sector was left vulnerable to the selling onslaught that followed. Metals: Ahead of silver's 18% top-to-bottom collapse since last Wednesday, some long liquidation had taken place but not enough to prevent a major negative reaction to a collapse in the COMEX-London spread and heightened recession worries. Gold and copper had also seen some profit-taking, but elevated long positions left both metals exposed.
What is the Commitments of Traders report?
The COT reports are issued by the U.S. Commodity Futures Trading Commission (CFTC) and the ICE Exchange Europe for Brent crude oil and gas oil. They are released every Friday after the U.S. close with data from the week ending the previous Tuesday. They break down the open interest in futures markets into different groups of users depending on the asset class.
Commodities: Producer/Merchant/Processor/User, Swap dealers, Managed Money and other Financials: Dealer/Intermediary; Asset Manager/Institutional; Leveraged Funds and other Forex: A broad breakdown between commercial and non-commercial (speculators)
The main reasons why we focus primarily on the behavior of speculators, such as hedge funds and trend-following CTA's are:
- They are likely to have tight stops and no underlying exposure that is being hedged
- This makes them most reactive to changes in fundamental or technical price developments
- It provides views about major trends but also helps to decipher when a reversal is looming
Do note that this group tends to anticipate, accelerate, and amplify price changes that have been set in motion by fundamentals. Being followers of momentum, this strategy often sees this group of traders buy into strength and sell into weakness, meaning that they are often found holding the biggest long near the peak of a cycle or the biggest short position ahead of a through in the market.
Recent commodity articles:
21 Mch 2025: Commodities weekly: High-flying precious metal sees profit taking 19 Mch 2025: Has the gold express already left the station? 17 Mch 2025: COT Report: Silver and copper stands out in week of energy weakness 14 Mch 2025: Gold surges past USD 3,000 as haven demand grows 12 Mch 2025: Tariffs and the energy transition: Key drivers of copper demand 11 Mch 2025: Gold holds steady despite deleveraging risks in volatile markets 10 Mch 2025: COT Report: Wholesale reductions in speculators' USD and commodity longs 7 Mch 2025: Commodities Weekly: Tariffs, trade tensions, fiscal bazooka, and Ukraine 5 Mch 2025: Tariff threat disconnects HG copper from global market 4 Mch 2025: Stagflation and geopolitical tensions fuel renewed demand for gold 3 Mch 2025: COT Report: Broad retreat sees WTI longs slump to 15-year low 28 Feb 2025: Commodities weekly: Broad weakness as tariff fatigue sets in 24 Feb 2025: COT Report: traders turn selective despite ongoing broad rally 21 Feb 2025: Commodities weekly: energy market strength and Trump rethoric fuel surge 18 Feb 2025: COT report: crude, gold and grains see mild profit taking 5 Feb 2025: Broad Strength Drives Commodities sector to 26-month High 4 Feb 2025: Crude Oil Wipes Out 2025 Gains as Tariffs and Demand Weighs 3 Feb 2025: COT Report: Mixed Week Seen Ahead of Trump's Tariff Offensive 1 Feb 2025: YouTube: Joining Kevin Muir on The Market Huddle podcast Podcasts that include commodities focus: 18 Mch 2025: US market found support, but how durable will it be? 14 Mch 2025: Is silver set to shoot the lights out? 10 Mch 2025: US un-exceptionalism is the theme 7 Mch 2025: US bear market risks ratchet higher. EUR train has left the station 4 March 2025: Are we on the verge of a big whoosh? 25 Feb 2025: Meltdown risks are rising. What to watch next 18 Feb 2025: Europe is on fire 5 Feb 2025: Mag 7 risks underappreciated? 3 Feb 2025: If new Trump tariffs stick, markets have only just begun to react 31 Jan 2025: Does the market think Trump is bluffing? 29 Jan 2025: The DeepSeek winners emerge 27 Jan 2025: DeepSeeking missile strikes global markets 24 Jan 2025: Four days in, Trump continues to dominate headlines, but ... 20 Jan 2025: Trump 2.0 swings into action 17 Jan 2025: Brace for Monday, as a new era begins
By: John Matthews
Posted on : Apr 08 2025
Nikkei 225 Wave Analysis – 4 April 2025
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Nikkei 225: ⬇️ Sell – Nikkei 225 broke support zone – Likely to fall to support level 30600.00 The Nikkei 225 index recently broke the support zone located at the intersection of the support level 35000.00 (former monthly low from.
By: John Matthews
Posted on : Apr 05 2025
USDCAD H4 Price Action Analysis and Trading Strategy
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USDCAD Forecast with NFP and CAD Jobs Data The USD/CAD, often referred to by traders as the “Loonie”, is a major forex pair that represents the exchange rate between the US Dollar and the Canadian Dollar. It is heavily influenced by oil prices, economic data from both the US and Canada, and monetary policy expectations.Fundamentally, […]
The post USDCAD H4 Price Action Analysis and Trading Strategy appeared first on Capitalcore LLC.
By: Lucas Bennett
Posted on : Apr 04 2025
SP-500 Struggles To Break Ichimoku Cloud
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Fed And OPEC Events Shape US500 Outlook The US500 (S&P 500), often called the “500,” serves as a benchmark for top-performing U.S. stocks and is pivotal for gauging market sentiment in Futures Indices (CFDs). As traders monitor price action, today’s high-impact events—including a White House briefing on tariff policies, Federal Reserve speeches on inflation expectations, […]
The post SP-500 Struggles To Break Ichimoku Cloud appeared first on Capitalcore LLC.
By: Daniel Carter
Posted on : Apr 03 2025
USD/JPY Daily Chart Analysis
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Uptrend Resumption Possible in USD-JPY H4 Chart The USDJPY forex pair, often referred to as the “Gopher” in trading circles, is a major currency pair representing the US dollar (USD) versus the Japanese yen (JPY). Known for its high liquidity and sensitivity to monetary policy and geopolitical developments, this pair offers rich opportunities for both […]
The post USD/JPY Daily Chart Analysis appeared first on Capitalcore LLC.
By: Daniel Carter
Posted on : Apr 02 2025
Liberation Day
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Analyst Weekly, March 31, 2025 The winds of trade war are picking up again – but this time, they’re blowing in from both Washington and Beijing. As the US ramps up tariffs ahead of “Liberation Day,” China is quietly shoring up its defences. And investors are left to rethink which sectors, strategies, and stocks still…
The post Liberation Day appeared first on eToro.
By: Thomas Wallace
Posted on : Apr 01 2025
EUR/USD Weekly Outlook
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EUR/USD gyrated lower last week but recovered ahead of 38.2% retracement of 1.0358 to 1.0953 at 1.0726 as expected. Initial bias stays neutral this week first. On the upside, break of 1.0857 minor resistance will suggest that correction from 1.0953 has completed already. Retest of 1.0953 should be seen first. Firm break there will resume […]
The post EUR/USD Weekly Outlook appeared first on Action Forex.
By: John Matthews
Posted on : Mar 30 2025
Elon Musk sells Twitter to xAI
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Elon Musk is combining X (formerly Twitter) and xAI (his AI company that's known for Grok).
The deal puts X under xAI with the transaction valuing X at $33 billion. That's a 33% discount to the $44 billion he paid to take Twitter private, however with the debt component it might all wash out. There was a mix of debt and equity in that deal and it also included many outside investors, including Jack Dorsey.
Presumably, they are on board with combining the companies and leaving former Twitter investors with a much smaller stake. The merger numbers valued xAI at $80 billion.
The combination makes sense with Grok embedded in Twitter, though I'm not sure the valuation of xAI makes sense in a world where DeepSeek can do what Grok can and it's open source.
Funnily enough, because of problems with Twitter today, it's hard to see the tweet where Elon Musk confirms it.
It says:
@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at unprecedented speed and scale.
X is the digital town square where more than 600M active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth.
I would love to know what went on behind the scenes to make this deal happen. I would much rather own 10% of Twitter than 2.9% of the combined companies.
This article was written by Adam Button at www.forexlive.com.By: Thomas Wallace
Posted on : Mar 29 2025
World indices overview: news from US 30, US 500, US Tech, JP 225, and DE 40 for 27 March 2025
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The decision to impose new US tariffs sent down all global stock indices. Find out more in our analysis and forecast for global indices for 27 March 2025.
US indices forecast: US 30, US 500, US Tech
- Recent data: US durable goods orders rose by 0.9% in February
- Market impact: a better-than-forecast reading typically indicates healthier economic activity, which may support stock growth
Fundamental analysis
The positive reading of 0.9% shows that the volume of orders is growing, with the result exceeding the forecast of -1.1%. This is an indicator of industrial production and the health of the US manufacturing industry. A stronger-than-expected reading typically points to healthier economic activity, which could support stocks.
However, the threat of new US tariffs on other countries is weighing on the market. The authorities are introducing fees of 3.5 million USD per US port call for Chinese vessels. This measure is aimed to boost the US shipbuilding industry, with duties potentially bringing in from 40 to 52 billion USD a year, according to Clarksons Research Services. All this could trigger a new round of inflation growth, which will not allow the US Federal Reserve to lower interest rates.
US 30 technical analysis
Following the correction, the US 30 stock index began to decline again without reaching the 42,910.0 resistance level. The downtrend continues, with the price highly likely to fall further in an effort to reach a new six-month low.
The following scenarios are considered for the US 30 price forecast:
- Pessimistic US 30 forecast: after the price consolidates below the previously breached support level at 42,370.0, the index could plunge to 40,035.0
- Optimistic US 30 forecast: a breakout above the 42,910.0 resistance level could drive the index to 43,890.0
US 500 technical analysis
The US 500 stock index has rebounded from the 5,785.0 resistance level and will likely continue to fall in the medium term. Upward momentum is insufficient for a trend reversal.
The following scenarios are considered for the US 500 price forecast:
- Pessimistic US 500 forecast: a breakout below the 5,530.0 support level could push the index down to 5,395.0
- Optimistic US 500 forecast: a breakout above the 5,785.0 resistance level could propel the index to 5,960.0
US Tech technical analysis
The US Tech index broke above the 20,240.0 resistance level and returned above the 200-day Moving Average. However, the index soon retraced below this level, forming a False Breakout pattern. The support level shifted to 19,515.0, which the price will likely breach, aiming for 18,405.0.
The following scenarios are considered for the US Tech price forecast:
- Pessimistic US Tech forecast: a breakout below the 19,515.0 support level could send the index down to 18,405.0
- Optimistic US Tech forecast: if the price consolidates above the previously breached resistance level at 20,240.0, the index could rise to 21,465.0
Asian index forecast: JP 225
- Recent data: Japan’s two-year government bond yields reached 0.88%
- Market impact: high rates make bonds more attractive than risky assets
Fundamental analysis
Rising rates make bonds more appealing than risky assets, which may lead to capital outflow from the stock market. So far, the Bank of Japan has pursued an extremely low interest rate (nearly zero interest rate) policy. If bond yields continue to increase, this could mean that the era of cheap money in Japan is coming to an end, and the central bank is poised for further rate hikes.
Overall, the Japanese stock market may face increased volatility and capital reallocation towards safer assets and the financial sector if interest rate expectations continue to rise.
JP 225 technical analysis
The stock index climbed by over 5% from the previously recorded six-month low, with the price currently approaching the 38,485.0 resistance level. If this level does not break, a consolidation or transition to a sideways movement is likely. However, in case of a breakout below the 36,260.0 support level, the downtrend could strengthen and become the main one.
The following scenarios are considered for the JP 225 price forecast:
- Pessimistic JP 225 forecast: a breakout below the 36,260.0 support level could push the index down to 35,115.0
- Optimistic JP 225 forecast: a breakout above the 38,485.0 resistance level could propel the index to 39,625.0
European index forecast: DE 40
- Recent data: Germany’s ifo Business Climate Index was 86.7 points in February
- Market impact: investors are typically positive about a rise in the index above the previous reading
Fundamental analysis
Stabilising or improving business sentiment may prompt investors to buy shares in industrial, construction or consumer sector companies that benefit from growing domestic demand. Overall, a slightly higher ifo reading than before indicates some recovery in business sentiment, which could support the German stock market, especially in sectors sensitive to domestic demand.
The US authorities intend to impose 25% tariffs on foreign cars, with Germany becoming one of the main victims. Automakers’ stocks will come under pressure.
DE 40 technical analysis
The DE 40 stock index rebounded from the 23,500.0 resistance level, without reaching a new all-time high. A sideways channel could form or the trend could reverse in case of a breakout below the support level. The uptrend is not expected to continue in the short term.
The following scenarios are considered for the DE 40 price forecast:
- Pessimistic DE 40 forecast: a breakout below the 22,425.0 support level could send the index down to 21,800.0
- Optimistic DE 40 forecast: a breakout above the 23,500.0 resistance level could drive the index to 23,770.0
Summary
The main news was the introduction of US import tariffs on cars, marking another phase of the trade war, which could lead to a rise in global inflation. The latter jeopardises the prospects of monetary policy easing. The US indices continue to fall, while the Japanese JP 225 may enter a sideways channel. The German DE 40 remains in an uptrend, but the likelihood of a correction is increasing.
By: Thomas Wallace
Posted on : Mar 28 2025