January 31, 2024
Forex Daily Update: 31 Jan 2024
CURRENCIES:
- Key Points:
- The consensus suggests no alteration in interest rates.
- However, the Federal Open Market Committee (FOMC) may modify its guidance, particularly in response to developments in inflation.
- Traders should brace for increased volatility in the foreign exchange (FX) markets, as any shift in the Fed’s stance could trigger substantial market swings.
- For a detailed preview of this event, readers can refer to the provided link for comprehensive insights.
- Major currency pairs, including EUR/USD, GBP/USD, USD/JPY, and USD/CAD, are scrutinized.
- The emphasis is on identifying crucial price thresholds that might function as either support or resistance in the forthcoming trading sessions.
- Traders are advised to pay close attention to these technical indicators to navigate potential market movements effectively.
STOCK MARKET:
- Key Points:
- Market Movements:
- Nasdaq Composite (^IXIC) experienced a decline of about 0.8%.
- Dow Jones Industrial Average (^DJI) rose by 0.4%.
- S&P 500 (^GSPC) traded flat.
- The benchmark index failed to secure another record closing high.
- Big Tech Earnings:
- Microsoft (MSFT) reported after-the-bell earnings beating both top and bottom-line expectations.
- Microsoft’s shares fluctuated in after-hours trading; guidance is expected during the earnings call.
- Alphabet (GOOGL, GOOG) saw shares drop approximately 5%, with fourth-quarter ad revenue missing expectations.
- AMD (AMD) reported fourth-quarter revenue in line with analyst expectations, with a 2% drop in after-hours trading.
- Apple (AAPL), Amazon (AMZN), and Meta (META) among the “Magnificent Seven” tech mega-caps set to announce results on Thursday.
- Other Market Developments:
- General Motors (GM) surpassed expectations for sales and revenue in the fourth quarter.
- GM shares closed up nearly 8%.
- Investors await the Federal Reserve’s interest rate decision at the end of its two-day meeting, with debate on potential cuts in March or May.
- Market Indices:
- MSFT: -0.28%
- ^GSPC: -0.06%
- ^DJI: +0.35%
- ^IXIC: -0.76%
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