Analysis of the American Economy Sunday, June 27

Analysis of the American Economy Sunday, June 27

NFP will change market interest rate expectations.

The US dollar index was unable to continue the uptrend that began after the Federal Reserve's interest rate meeting. Several US Federal Reserve officials have opposed raising interest rates early or withdrawing from the bond-buying program. However, new economic data from the US will be released this week, which could have a greater impact on the US dollar and market interest rate expectations.

The rally of the US dollar index has stopped after entering the resistance in the range of 92.50 units and has entered a neutral phase. The Federal Reserve's expansionary monetary policy will continue. The head of the US Federal Reserve also said that the central bank is in no hurry to exit monetary expansionary policies. The Federal Reserve wants to pursue protectionist policies until the US economy recovers completely. The head of the Federal Reserve in New York has also stressed that the conditions are not right for a change in monetary policy. The US NFP Index will be released this week, and it remains to be seen whether US employment data supports the Federal Reserve's monetary policy.

US employment growth (NFP) is projected to be positive for the sixth consecutive month and the US unemployment rate to fall from 5.8% to 5.6%. Improving the US labor market could benefit the US dollar. In fact, improving the US labor market could force the Fed to pull out of expansionary monetary policy. But if US employment data are weak, market expectations of the Federal Reserve will fall and the US dollar will fall. Poor employment data will mean that the US economy is not performing well and should pursue expansionary and monetary protection policies.

Analysis of the euro area economy Sunday, June 27

Analysis of the euro area economy Sunday, June 27
 Eurozone inflation data will determine the EURUSD trend.

Next week, the main focus of euro traders will be on inflation data for Germany and the euro area. Eurozone inflation data are released after PMI data. Last week, the eurozone PMI data were much better than market forecasts.

In June, the German PMI and the euro area as a whole were higher than market forecasts. The IFO business climate change index was also good. Under normal circumstances, the release of such economic data could strengthen market interest rate expectations and support the EURUSD. But the European Central Bank has made it clear that rapid inflation is temporary and therefore there is no need to raise interest rates or reduce bond purchases. This means that if the eurozone inflation data is weak this week, even the most optimistic market investor will no longer expect interest rates to rise, and the euro will weaken as a result.

Amazon| shares likely to grow 10% after the unveiling of {Luna} cloud gaming service

Amazon shares likely to grow 10% after the unveiling of Luna cloud gaming service

Amazon (NASDAQ: AMZN) is set to make its Luna game service available to Amazon Prime subscribers in conjunction with the Amazon Prime Day Festival on June 21 and 22. This could pave the way for a new source of revenue and increase the value of the company's stock.

Last September, 37 analysts set a 12-month target for Amazon at $ 3,732.29 on average and the lowest and highest forecast levels at $ 3,400 and $ 4,200, respectively. These figures show a 10.51% increase over today's stock price of $ 3383.13 (-0.022%).

It is worth noting that the company's latest quarterly revenue report shows revenue of $ 108.52 billion, an increase of 44% over the previous year. Obviously, this figure has broken analysts' forecast of $ 105.23 billion. The company reported earnings of $ 15.79 per share, which is contrary to analysts' estimates of $ 9.54.

Luna game service and Amazon shares

As can be seen from the company's stock performance, Amazon continues to move forward: 3.67% growth in 5 days, 4.69% in 1 month, 9.44% in 3 months, and 3.9% growth since the beginning of the year. The company has been operating for the past year. Perhaps one of the reasons for this growth is the increase in online shopping since the beginning of the Corona epidemic. Currently, the company plans to increase its sales in the second quarter of the year to 110 to 116 billion dollars. Amazon hours of play on the Prime Video platform have increased by 70% compared to last year, so the arrival of Amazon Prime Day is expected to have a positive impact on sales.

The company's latest offer gives all Prime members in the United States access to a 7-day trial of the Luna cloud platform. Initially, access to Luna was limited to subscriptions to Amazon Fire TVs. However, the company has now lifted this restriction and Luna is compatible with other operating systems including Mac Apple, Windows PC and via the web on iPhone, iPad and Android.

From June 14 to 22, Luna controller buyers will enjoy a 30% discount on $ 69.99.

Amazon (NASDAQ: AMZN) introduced Luna as its first move in the gaming industry in September last year. The platform has evolved to the point where it now competes with giants such as Xbox, Google Stadia, Game Pass and Microsoft xCloud. However, in the meantime, certain studies have already affected the Luna cloud gaming platform. For example, some testers claim that although games load quickly, the title library is very small. In addition, to have an uninterrupted game, you need to have an internet speed of at least 25 Mbps.

Fundamental Analysis of the American Economy Sunday, June 6

Fundamental Analysis of the American Economy Sunday, June 6

Last week, the US dollar fluctuated significantly in response to the ADP and NFP indices, but eventually the dollar index ended the week at the same levels as at the beginning of the week. The rapid growth of the ADP had prompted investors to expect rapid and strong NFP growth, but this did not happen and investors were disappointed. In fact, with the release of the NFP index, all the growth of the dollar index, which was due to the good report of ADP, disappeared.

Next week, Forex investors and traders will focus on risky events such as the European Central Bank interest rate meeting and the US Consumer Price Index (CPI).

US inflation grew to 4.2 percent last month. The Federal Reserve responded to the report by saying that rapid inflation was still temporary. It remains to be seen how the Fed will react if US inflation continues to grow rapidly. The dollar also strengthened last month as US inflation soared. If the Fed concludes that rapid inflation growth is not temporary and should begin to exit monetary expansionary policies, the dollar will react very quickly and strengthen.

US dollar index at 90 points Sunday, May 16

US dollar index at 90 points Sunday, May 16

In early 2018, the US dollar index hit the range of 89-88 in the form of support and moved to a price peak of 103.77 during two years. Further resistance at 103.77 points led to a new downtrend and the market fell close to the 89-point trend. Recently, after hitting the uptrend line again, the dollar index has faced resistance from this trend line and the moving average of 50 and has started a new downtrend. In this week's trading, if the dollar index falls below the 90-point trend and continues to decline, it could fall to the long-term support range of 89-89.

35% increase in S&P 500 futures in the Asian market Thursday, May 13

35% increase in S&P 500 futures in the Asian market Thursday, May 13

The S&P 500 futures traded up 0.35 percent at 4.073 during mid-trading on Thursday, breaking the lowest level recorded in early April.

Earlier in the day, the Asian Stock Exchange, the US Centers for Disease Control and Prevention (CDC) approved the Pfizer vaccine for teens over the age of 12 and offered a new buy under the S&P 500 futures contract. Investors are extremely cautious for fear of a large recession that persists.

After the US Consumer Price Index (CPI) reached its highest level since 2008, the risk benchmark experienced a three-day drop to its lowest level in several days. Rising headline inflation is pushing the Fed to cut interest rates, but it should not be forgotten that the bank also faces challenges over the Biden administration's next bailout package.

It should be noted that Japan and New Zealand have recently become concerned about the internal situation created by the Corona virus and the resulting overseas issues.

While the current risky situation poses many challenges for traders, they seem to be waiting for US markets to open up for new incentives. During this session, the weekly US Unemployment Insurance Claims and the Producer Price Index (PPI) on the eve of the US Wholesale Retail and the Michigan Consumer Sense Index may provide an intermediate direction for investors.

West Texas Intermediate (WTI) Oil Wednesday, May 12

West Texas Intermediate (WTI) Oil  Wednesday, May 12

The Energy Information Administration (EIA) said in its latest monthly report on Wednesday that demand in the oil market will grow as India emerges from the Corona crisis.

The following points are mentioned in a part of this report:
Supply growth is currently due to increased oil production in Canada and Brazil.
According to OPEC, this supply is not in line with the level of demand, and the level of demand could fall due to the corona epidemic.

Forecast for oil demand in Europe in the first quarter of 2021 fell by 270,000 barrels to 5.4 million barrels per day. The forecast for the United States during this period was a decrease in demand of 515 thousand barrels per day.

Following the release of this monthly report, West Texas Intermediate crude traded up 0.62% at $ 65.64 a barrel at the time of writing.

Weak NFP growth caused the US dollar to fall Saturday, May 8

Weak NFP growth caused the US dollar to fall Saturday, May 8

In April, the US employment growth rate (NFP) was only 266 thousand units! Meanwhile, the market expected growth of 978 thousand units. March data also had a negative adjustment. In other words, the growth of the NFP in March has changed from 916 thousand units to 770 thousand units. The dollar fell in response to the NFP's disappointing growth. Meanwhile, the US unemployment rate has risen to 6.1 percent. The market forecast for the unemployment rate was 5.8 percent.

S&P 500 Index Analysis Wednesday, May 5

S&P 500 Index Analysis Wednesday, May 5

The S&P 500 is hovering below the 4,200 mark, and analysts at Credit Suisse believe that a relatively long recession awaits the index. Also, the most important level of support is in the range of 4118 to 4112 units.

Due to the formation of several downtrend patterns as well as the downtrend of the MACD indicator, we will probably face a downtrend and volatility.

On the other hand, the resistance range of 4188 to 4193 units has prevented the growth of this index. The first support level is in the range of 4157 to 4155 units and if the index penetrates below this level, the next target will be the support range of 4118 to 4112 units. The last important level of support is in the range of 4086 to 4079 units. This level is adjacent to the 38.2% Fibonacci retracement level of the March uptrend.

On the other hand, if the resistance level above 4193 units is stabilized, we will see the growth of the S&P 500 index up to the range of 4209 to 4212 units. If the index can reach above 4219 units, we can expect an upward trend towards the targets of 4225, 4229, 4259 and 4260 units.

The Pfizer vaccine is approved for children 12 to 15 years of age

The Pfizer vaccine is approved for children 12 to 15 years of age

 

According to a report released late Monday, Pfizer is expected to receive approval from the Food and Drug Administration to use the vaccine in children ages 12 to 15. Federal officials told the New York Times that the approval could be made later this week.

The Pfizer vaccine is given in two doses three weeks apart and is approved for use in people 16 years of age and older. In April, Pfizer and Biontec applied to US and European authorities for approval to use the vaccine in people aged 12 to 15.

Shares of Fayez rose 3.1% to close at $ 39.83 on Monday, and Biontech shares in the United States closed 11% higher.