Market Update by Solidecn.com

[Solid ECN]

Yen Slides as Dollar Strengthens



Solid ECN – The Japanese yen has recently fallen to around 142 against the dollar, moving away from its five-month high. This change comes as the dollar gains strength and investors reduce their expectations for major interest rate cuts by the Federal Reserve this year. However, trading activity in Japan has been thin due to ongoing holiday celebrations.

At the same time, the country is dealing with the aftermath of a significant earthquake that hit its central region on New Year’s Day. Adding to the economic landscape, recent statements from Bank of Japan Governor Kazuo Ueda have sparked discussions about a potential shift away from Japan's negative interest rates policy. Last month, Ueda noted an increasing likelihood of Japan's economy emerging from its prolonged low-inflation state and reaching its inflation target. He mentioned that if the positive cycle of wages and prices strengthens enough to sustainably achieve the 2% inflation target, the Bank of Japan might consider altering its monetary policy.

[Solid ECN]

Why MetaTrader 5 is the Superior Choice for Traders

We've picked out the best trading platform for you: MetaTrader 5, the latest and most sophisticated option out there!


Why Choose MetaTrader 5?

MetaTrader 5 isn't just an updated version of MT4. While MT4 was designed for Forex trading, MT5 caters to trading CFDs, Stocks, and Futures. It's meant for those who have more trading experience. At Solid ECN, we discovered that many new and amateur traders are already using MT5. In fact, MT5 users have now outnumbered those on MT4!

Key Benefits

1. MT5 offers 21 time frames for analysis, compared to just 9 in MT4. This helps traders get a clearer picture of market trends.
2. MT5 has 6 types of pending orders, two more than MT4.
3. Unlike MT4, MT5 shows market depth directly in the chart.
4. MT5 comes with a built-in Economic calendar.
5. MT5 supports both hedging and netting, while MT4 only allows hedging.
6. With MT5, enjoy 38 technical indicators, 44 analytical objects, and unlimited charts.
7. MT5's partial order filling options are ideal for seasoned traders.
8. The strategy tester in MT5 is more advanced, using multi-threading, unlike MT4's single-threaded system.

MetaQuote, the company behind these platforms, is phasing out updates for MT4. So, we think MT5 is the smart choice!

What platform do you use for trading, and why? Share your thoughts in the comments!

[Solid ECN]

NZX 50 Dips Amid Global Market Jitters


Solid ECN – On Wednesday, the NZX 50 fell by 40.36 points, a 0.34% drop, ending at 11,730.14. This followed a slight downturn in US futures after a tough start to the year on Wall Street, especially in tech stocks. Ahead of key US job data and the nonfarm payrolls report, traders seemed less hopeful about interest rate cuts from the Federal Reserve.


Concerns grew as China's uncertain economic future cast a shadow, affecting its main trading partners like New Zealand. Recent data showed a decline in China's manufacturing for December, though some private surveys suggested a slight positive trend in the sector. The NZX 50 was impacted by sectors like manufacturing, transport, consumer services, and non-durables. Notably, Restaurant Brands NZ dropped 4.5%, Scales Corp. 2.9%, Auckland Intl. 2.7%, A2 Milk Co. 2.4%, and Meridian Energy Ltd. 1.8%.

[Solid ECN]

Unlock Your Trading Potential with Solid ECN's Complimentary Market Analysis

Elevate your trading strategy with Solid ECN's expert market insights. Our seasoned team provides daily, professional market analysis, blending fundamental and technical perspectives, across six key platforms.

Get ahead of the curve by signing up for a demo account. Receive the latest market updates directly in your inbox, or stay connected with us on your preferred social networks.

Our in-depth analysis empowers our clients to trade more effectively, minimize losses, and effortlessly pinpoint precise entry and exit points.

Join the Solid ECN community today and transform the way you trade!

---

https://solidecn.com%15 Bonus | Swap Free | Raw Spread | Regulated

[Solid ECN]

EURUSD Plunges: AO Divergence & Impact




The EURUSD currency pair experienced a sharp decline from 1.11394 in today's trading session, as previously hinted by the awesome oscillator's divergence.

Currently, the pair is testing the 23.6% Fibonacci level at 1.10403. Intriguingly, the RSI indicator is hovering near the median line and could dip below if selling pressure persists. The December 22 high at 1.1041 and the lower line of the bullish flag are jointly reinforcing the bullish trend. As long as the price stays above this level, the uptrend is likely to continue.

Conversely, a break below the bullish flag could signal further declines, with the next target being the 50% Fibonacci retracement level.

[Solid ECN]

Silver Near 38.2% Fibonacci: Signs of Market Reversal



Silver is currently trading near the 38.2% Fibonacci support level. On the XAGUSD 4-hour chart, a hammer candlestick pattern has emerged. The Stochastic oscillator is signaling that the market is oversold. In conclusion, if the silver price manages to stay above the Fibonacci support level, it's likely that the uptrend will continue. If this happens, the bullish target could be the 61.8% Fibonacci resistance level.

[Solid ECN]

Russia Manufacturing Growth at Near 7-Year High

Solid ECN – The S&P Global Russia Manufacturing PMI rose to 54.6 in December 2023, up from 53.8 in November. This increase marks the sector's quickest expansion since January 2017, driven by continued improvements in output and new order growth. The rate of job creation accelerated, reaching its highest point in three months. Additionally, backlogs of work decreased for the second consecutive month. Purchasing activity grew at a substantial rate, the second-strongest since August 2006.

In terms of pricing, input cost inflation slowed to a six-month low. This was due to increased supplier prices and unfavorable exchange rate movements. However, output cost inflation remained relatively stable and was among the weakest in the past six months. Finally, business sentiment weakened, falling to a three-month low.

[Solid ECN]

Canadian Dollar Peaks on Inflation, BoC Outlook




Solid ECN – The Canadian dollar rose past 1.33 against the USD in December, reaching its highest level since early August. This increase is due to ongoing high inflation in Canada, leading to expectations that the Bank of Canada might take a more aggressive approach in its monetary policy. In November, the main inflation rate was at 3.1%, higher than the expected 2.9%. The closely watched core rate, which removes certain items, was at 3.5%, also higher than predicted.

This data supports the central bank's concern about continuing high inflation, suggesting they might keep their strict monetary policy and possibly raise interest rates. This is different from the more cautious approach of the Federal Reserve, which helped the Canadian dollar gain value against the US dollar.

Early reports for November show that Canada's economy grew compared to the previous month. However, updated figures for October indicate the economy didn't grow much, which is in line with the Bank of Canada's predictions for the economy.

[Solid ECN]

Swiss Franc Hits Record High Against USD & Euro



The Swiss franc strengthened past 0.85 against the USD in late December, marking its highest level since August 2011. It is poised to register an 8.5% increase against the dollar this year, influenced by differing interest rate outlooks from the Swiss National Bank (SNB) and the Federal Reserve. The Fed's latest meeting revealed dovish projections, further amplified by new data indicating a slowdown in US inflation, which put pressure on the greenback.

In Switzerland, despite a slowdown in inflation, the SNB has noted that the potential for price growth to increase justifies maintaining higher interest rates for now. Inflation in Switzerland was last reported at 1.4% in November. However, the central bank anticipates a rise towards its 2% target in the second and third quarters of 2024. This forecast leads investors to expect that any reductions in interest rates by the SNB will likely occur well after the Fed's similar actions.

The sustained prospect of higher interest rates from the SNB has also propelled the franc to a record high against the Euro, the currency used in neighboring countries.

[Solid ECN]

AUDUSD Eyes May 2023 High Amid Mixed Signals



Solid ECN – The Aussie dollar is currently seeing a 20-pip dip from yesterday's high in this trading session. At the moment, the pair is testing the Ichimoku cloud on the 1-hour chart, while technical indicators are showing mixed signals.

Should the AUDUSD price stay above its current level, the uptrend is likely to persist. In such a scenario, the price could soar to 0.6900, which was the all-time high in May 2023.

It's important to note that the lower band of the bullish flag is key. As long as the price remains within the flag, the uptrend remains intact.