overview of developments in the financial markets

 🔀 During yesterday’s session, the Dow Jones index recorded its highest level in one month, while the Nasdaq index fell by more than 1%, as investors abandoned shares of companies related to the field of artificial intelligence and headed to others operating in value areas, such as financial sector shares, energy, and utilities.

 🔻 Nvidia's stock fell by 6.68% for the third session in a row, as market observers indicated that the company was exposed to profit-taking operations after it became the most valuable company in the world after the noticeable rise it recorded last week. At a time when other chip stocks fell, including US stocks in Taiwan, which operates in the field of semiconductor manufacturing. Shares of Broadcom, Marvell Technology and Qualcomm also fell

 

 💲 The US dollar fell this morning, for the second session in a row, after falling from its highest level in almost eight weeks, which it recorded on Friday. The dollar index was down 0.09% at 105.00.

 👀 US Personal Consumption Expenditures (PCE) Price Index - The Fed's preferred measure of inflation is due on Friday, but today the highlight of the US docket is the CB Consumer Confidence Index, followed by the Richmond Manufacturing Index.

 🏛 The political conditions in American life occupy a place in the minds of investors, as the first American presidential debate between President Joe Biden and his rival, former President Donald Trump, is scheduled to take place on Thursday.

 🍁 Today, Canadian Dollar traders will receive the latest inflation figures from the Consumer Price Index (CPI), which is expected to ease slightly over the year to May.

 💱 The US dollar fell against the Japanese yen by 0.14%, with traders remaining on high alert for any intervention by Japanese authorities to support the currency. In fact, fears of another intervention kept traders wary of testing the key 160.00 resistance level, leaving the yen trading in a narrow range.

 💶 The euro rose 0.11% to $1.0742, amid political turmoil in France following President Emmanuel Macron's surprise call for early elections earlier this month. However, the single currency was on track to post a monthly loss of around 1%, due to these disruptions. The British pound rose 0.15% to $1.2697.

 ⤴️ In the cryptocurrency market, Bitcoin rose by 2.73% to $61,050, erasing part of the large losses that occurred in yesterday’s session by 6.65% and recorded its lowest level in more than one month. The queen of cryptocurrencies suffered its worst day in more than two months at the start of the week, partly due to exits from bitcoin exchange-traded funds (ETFs).

Key economic data and upcoming events (GMT)

09:00 - Eurozone: Stournaras’ speech from the Central Bank to the European Union 

 11:00 US: Bowman speech from the Fed 

 12:30 – Canada: Consumer Price Index

 14:00 - United States: CB Consumer Confidence Index 

 16:00 - United States: Kwok's speech from the Federal Reserve 

 18:10 - US: Bowman's speech from the Federal Reserve 

 01:30 (Wednesday) – Australia: Consumer Price Index 

AXSUSD crypto analysis

Timeframe: 4H 

 Since the trend is down, we expect a break of the 5.50 support level which will reflect a sell signal.  Only exceeding the 6.27 resistance level will cancel this bearish scenario.

 Details of the transaction:

 Entry level: 5.50

 Stop loss level: 6.27

 First goal: 5.02

 Second goal: 4.25

 Rating: 8 

 Strategy: Bearish breakout

overview of developments in the financial markets

 🆙 S&P 500 futures rose yesterday, and the benchmark index is seeking to surpass its recent record high.  Its futures rose 0.28%, while Nasdaq 100 futures advanced 0.46%.  It is worth noting that stocks are heading towards a week full of gains.

 📈 A rise in Nvidia shares led indexes to hit new record levels on Tuesday as the artificial intelligence and chip maker overtook Microsoft to become the most valuable company in the world.  Nvidia shares rose by 174% in 2024, in light of the continued artificial intelligence revolution that contributed to strengthening the shares.  It is worth noting that the stock market was closed yesterday for the Freedom Day holiday.

 💲 The dollar rose somewhat this morning, although movements in the foreign exchange market were limited as traders wait for any new catalysts to lead the market following yesterday's holiday.  Against a basket of currencies, the dollar rose 0.07% to 104.90, heading towards its highest level in one month recorded last week.

 👀 Today, the Mortgage Bankers Association's weekly mortgage claims will be released, followed by: Building Permits, New Housing Projects, Philadelphia Fed Manufacturing Index, Regular Initial Jobless Claims, and Fed's Barkin Speech.

 💱 The dollar rose 0.07% against the yen at 158.17, as the Japanese currency remained close to its lowest levels in more than a month at 158.255 against the dollar, which it recorded last week.

 💶 The euro stabilized at $1.0743.  This morning, the European Commission will publish its advanced consumer confidence index.

 💷 The British pound remained broadly stable ahead of the Bank of England meeting.  It recorded its last trading at $1.2718 after achieving slight gains during the previous session.  The Bank of England is widely expected to keep interest rates unchanged, and the focus will be on any guidance on when the monetary easing cycle might begin.

 🏦 Meanwhile, the Swiss National Bank is expected to cut its key interest rate by 25 basis points for the second meeting in a row today, as the recent strength of the Swiss franc combined with weak domestic inflation clearly supports a rate cut scenario.

 ➡️ In Australia, the Australian dollar and New Zealand dollar were roughly flat at $0.66745 and $0.61345, respectively.  Data this morning showed that the New Zealand economy grew faster than expected in the first quarter but remained weak.  This data did not affect market expectations regarding the country's monetary policy, as Reuters conducted a poll last month indicating that the cycle of easing interest rates will begin by the end of the year.

 🥇 Gold prices rose to their highest levels in two weeks this morning, despite the dollar’s ​​recovery.  It is worth noting that gold recorded its last trading session, rising by 0.6% at $2,341.15 per ounce.

An overview of developments in the financial markets

 📈 The Standard & Poor's 500 index rose to a new record high yesterday as shares of artificial intelligence company Nvidia continued to record new highs, surpassing Microsoft as the most valuable public company in the market. The Nasdaq index of giant technology stocks also closed at a record high, but recorded only marginal gains at the end of the session.

 🚀 Nvidia's stock rose by 3.5%, surpassing Microsoft as the public company with the most market value, and it is clear that the company continues to outperform after its market value exceeded the level of $3 trillion and exceeded the value of Apple earlier this month. It is worth noting that the chip maker's shares have risen by 174% since the beginning of the year, at a time when the artificial intelligence revolution is still continuing.

 📊 Retail sales rose by 0.1% in May, versus economists’ expectations of a 0.3% rise, while another report showed that industrial production recorded a strong performance in May, as did manufacturing production. Following this news, markets raised their bets somewhat and began to expect that the Federal Reserve will make two rate cuts this year.

 💲 The dollar fell in the immediate aftermath, however, its losses remained limited against a basket of currencies. The dollar began to recover some of its losses this morning, and the dollar index recorded its last trading, rising by 0.02% to 104.88. It is worth noting that American markets will remain closed today for the Freedom Day holiday.

 💱 The dollar remained stable against the yen at 157.89, as the latter remains under pressure due to wide interest rate differentials between Japan and the United States. Minutes from the Bank of Japan's April monetary policy meeting this morning showed that policymakers discussed how a weak yen would impact prices, however, the market had no reaction to the release.

 💶 The euro last recorded its trading at a low of $1.0738, as it remained affected by political tensions in France and the eurozone as a whole. It is worth noting that today the European Monetary Union current account and construction outputs will be published.

 💷 The British pound fell 0.03% to $1.2705 ahead of the release of UK inflation data, after which the Bank of England's monetary policy decision will be issued on Thursday, when it is expected to keep interest rates unchanged.

 😎 The Australian dollar significantly outperformed the US dollar, supported by the hawkish stance adopted by Michelle Bullock - Governor of the Australian Reserve - yesterday in a press conference held following the central bank’s decision on interest rates. The Australian dollar recorded its last trading session, rising by 0.16% at $0.6665, continuing its gains of 0.66% achieved during the previous session. Meanwhile, the New Zealand dollar fell 0.15% to $0.6133.