Trading insight: US Senate passed the “deal”
Market talk and ideas
Chart 1 US100 as of June 2 2023 6:49 UTC
The above chart illustrates the US 100 index current uptrend as observed on the daily chart. Current price has advanced +33% year to date as investors shifted into the “AI trade” by supporting the big tech companies that are expected to benefit from the growth of AI (artificial intelligence).
Risk appetite increases in front of today’s US nonfarm payrolls (NFP)
Data as of June 2 2023 7:09 UTC
Possible drivers behind the renewed risk on market moves:
- US debt ceiling bill passed the Senate
- US non-farm payrolls could offer surprise upside
- Despite the prospects of a stronger US jobs report being viewed as an increased risk for the Fed to hike rates again, the underlying US economy remains solid
Today’s economic calendar
US nonfarm payrolls (NFP) due today
Prospects for a higher jobs number, or will the report indicate a slowing US labor market?
Either way high price action could be on deck across USD assets at the time of today's jobs report release!
- High price action across US FX markets including EUR/USD, GBP/USD, USD/JPY
- US stock indices in spotlight: US 100, S&P 500, and Dow Jones 30 could see increased price action upon the release of today’s US NFP report
Source: TradingView / J. Knobel June 2 2023 6:38 UTC
Technical trade ideas
Gold price has been up three days in a row. Is $2K back in sight?
Gold price seems to have embraced the passing of the US debt ceiling deal gaining nearly 1.6% during the past 5 days.
Current price above its multi-week downward sloping trendline indicates that price has found support on the trendline (see chart 2), despite this, the recent move higher could be a “corrective” move from the May 4th high - May 30th low downside move. Therefore, a further “corrective” move higher can not be ruled out for a run at the $2,000 level, however, a return of the prevailing downtrend could also be triggered provided the support at $1,963 fails to hold.
Not investment advice. Past performance does not guarantee or predict future performance.
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