Market Update by Solidecn.com

[Solid ECN]

WTI Crude Rises Amid Middle East Tensions & Demand Outlook



Solid ECN – WTI (West Texas Intermediate) crude oil futures recently experienced a noticeable uptrend, stabilizing around $74 per barrel by the end of the week. This upward movement in oil prices can be attributed to several key factors, including escalating tensions in the Middle East and a positive shift in global oil demand projections.

The Middle East, a pivotal region in global oil dynamics, witnessed an intensification of conflicts that significantly impacted the oil market. The United States increased its military actions against Houthi targets in Yemen, responding to the group's repeated assaults on maritime shipping. These geopolitical developments directly influence oil prices due to the region's crucial role in global oil supply.

In the United States, recent data from the Energy Information Administration (EIA) revealed a substantial decrease in crude inventories. The report indicated a drop of approximately 2.5 million barrels last week, surpassing the forecasted reduction of 313,000 barrels. This decline in oil stockpiles is a strong indicator of tightening supply conditions, which can contribute to rising oil prices.

On the demand front, the International Energy Agency (IEA) revised its 2024 oil demand growth forecast upward to 1.24 million barrels per day, an increase of 180,000 barrels per day. This adjustment is attributed to anticipated improvements in economic growth and the impact of lower crude prices in the fourth quarter. Likewise, the Organization of the Petroleum Exporting Countries (OPEC) maintained its optimistic forecast for oil demand growth in 2024 at 2.25 million barrels per day. It projected a significant growth of 1.85 million barrels per day in 2025.

[Solid ECN]

Canadian Dollar Weakens Amid Inflation Surge




Solid ECN – In January, the Canadian dollar experienced a notable depreciation, crossing the 1.345 mark against the US dollar. This movement marked its weakest position in over a month, primarily influenced by the strengthening of the US dollar. This shift in currency value comes amidst anticipations and speculations regarding policy decisions from the Bank of Canada (BoC) and the Federal Reserve in the United States.

Investors are displaying a sense of uncertainty, particularly about the timing of the Federal Reserve's expected reduction in interest rates. This uncertainty is coupled with the recent developments in Canada's domestic economic indicators, especially regarding inflation. Contrary to some expectations of monetary policy easing by the BoC, current inflation data has added complexity to the situation. In December, Canada's headline inflation rate rose to 3.4%, up from 3.1% in the previous month. This increase marks the first Consumer Price Index (CPI) acceleration in four months, indicating persistent inflationary pressures.

Moreover, the trimmed-mean core gauge, a measure closely monitored for its reflection of underlying inflation trends, unexpectedly surged to a four-month high of 3.7%. This data is particularly significant as it contrasts with the BoC's earlier statements. The BoC had indicated a desire to see a substantial slowing in its preferred core inflation measures before considering any rate cuts. This recent uptick in inflation measures suggests that the central bank might not be able to ease monetary policy as quickly as some market participants had hoped.

[Solid ECN]

Solid ECN: 15% Bonus & Fast MT5 Trading

Solid ECN is a notable forex broker renowned for its commitment to providing exceptional trading experiences to its clients. One of their attractive offerings is a 15% deposit bonus, exclusively available to fully verified trading accounts upon request.

This bonus is an additional leverage for traders, enhancing their trading capacity. Additionally, Solid ECN has integrated the advanced MetaTrader 5 (MT5) platform, widely acclaimed for its comprehensive trading tools and user-friendly interface. A key highlight of Solid ECN is its super-fast execution, which minimizes slippage and ensures that traders can capitalize on market opportunities almost instantaneously.

This combination of a generous deposit bonus, advanced trading platform, and rapid execution speeds makes Solid ECN a compelling choice for traders seeking an efficient and reliable trading environment.

---

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

[Solid ECN]

USDCHF: Switzerland's Inflation and Monetary Strategies



Solid ECN – The Swiss franc has been stable since the beginning of the year, hovering around 0.85 against the US dollar. This stability is close to its 12-year peak of 0.83, achieved on December 29th. The Swiss National Bank (SNB) has implemented various support measures, leading to this steadiness. Market analysts believe the SNB might maintain its strict monetary policy for an extended time.

In December, Switzerland experienced an unexpected rise in inflation, reaching 1.7%. This rate is still within the SNB's expected range. However, it exceeded what many experts had predicted. This increase mirrors the inflation trends in countries using the Euro, Switzerland's primary trading partners. As a result, the SNB might need to raise interest rates. This move would support the Swiss franc and reduce the impact of imported inflation.

Contrasting with Switzerland's approach, there's growing speculation that the US Federal Reserve might cut interest rates sooner than anticipated. The SNB's strategy also includes selling foreign exchange. Recent data revealed that their reserves dropped to the lowest level in over seven years.

[Solid ECN]

GBPUSD Analysis




Solid ECN – The GBPUSD currency pair trades within the bullish flag's lines, while the awesome oscillator indicator signals divergence in the daily chart.

The resistance that stopped the price from rising further is the 1.2827 mark. If the divergence signal comes into play, we can expect the GBPUSD price to fall and initially target the 38.2% Fibonacci support—the lower band of the envelopes indicator and the Ichimoku cloud further back up this support level.

Conversely, the bulls must break above the 1.2827 resistance for the uptrend to continue.

[Solid ECN]

AUDUSD Analysis




Solid ECN – In the 4-hour chart, the AUDUSD currency pair oscillates within a downward channel. The RSI indicator is below 50, suggesting the downward trend may persist. If the downward channel remains intact, we could see a further decrease in the currency pair, potentially reaching the channel's lower boundary.

However, there's a chance for an upward breakout from the downward flag, as indicated by the divergence in the awesome oscillator. This divergence could signal a potential trend shift. Nevertheless, as long as the AUDUSD price remains within the flag, the downward technical analysis remains applicable.

[Solid ECN]

Trade Smarter with Solid ECN

Experience unparalleled trading efficiency with Solid ECN Securities, your trusted forex broker. We specialize in offering ECN accounts, accessible with a minimal deposit of just $10, making premium trading experiences available to everyone.

Our commitment to fast execution ensures that your trades are processed at lightning speed, keeping you ahead in the fast-paced world of forex trading. Coupled with ultra-low spreads, Solid ECN Securities is dedicated to providing a cost-effective and seamless trading journey.

Whether you're a seasoned trader or just starting, our platform is designed to cater to your every need, setting a new standard in online forex trading.

Join Solid ECN Securities today and take your trading to the next level!

---

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

[Solid ECN]

Trade Major Pairs Swap-Free for 7 Days!

Experience unparalleled trading with Solid ECN Securities, your gateway to the exciting world of forex. We're thrilled to introduce an exclusive offer for our valued traders.

• Enjoy swap-free trading on major currency pairs for a week!
  

At Solid ECN, we understand the importance of flexibility and cost-effectiveness in trading. We've eliminated swap fees on major currency pairs like EUR/USD, USD/JPY, GBP/USD, and others for seven days. This unique feature allows you to maximize your trading potential without worrying about additional costs, making it easier to focus on what matters - your trading strategies and market movements.

---

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

[Solid ECN]

Gold Dips as Dollar Rises on US Data




Solid ECN – Gold's price fell to under $2,030 per ounce on Thursday. This drop happened as the US dollar got more robust. Good US economic news reduced expectations for more accessible money policies in March. Inflation rates were higher than expected. Yearly inflation increased to 3.4% in December, up from 3.1% in November. Also, fewer people filed for unemployment last week than expected. Only 202,000 filed, less than the 210,000 predicted. This shows the job market is still strong.

[Solid ECN]

USDCNH Tests Support; Bulls vs. Bears in Market Tug


Solid ECN – The USDCNH pair is testing the 7.1631 support level on the 4-hour chart. Meanwhile, the Stochastic oscillator is gradually stepping outside the oversold area, signaling a potential change in momentum. If the bulls maintain the price above this support, we can reasonably expect the USDCNH price to experience a new bullish wave.

Consequently, the market might surge to the 7.1898 area in such a scenario.

On the flip side, should the bears successfully breach the support, the decline would likely extend to the 38.2% Fibonacci support level.