Forex Market Analysis: Fed & Tech Impact 31 Jan 2024

2024/01/31

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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