EUR/USD Stays Under Pressure At The Start Of The Week

Key Insights

  • EUR/USD is trying to gain additional downside momentum at the start of the week. 
  • Today, traders will focus on the dynamics of Treasury markets and economic reports from the U.S. 
  • A move below 1.0500 will push EUR/USD towards the support level at 1.0485.

Euro Is Moving Lower Against U.S. Dollar

EUR/USD continues its attempts to settle below the support at 1.0500, while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get above the 104 level and is trying to develop additional upside momentum. In case this attempt is successful, the U.S. Dollar Index will move towards the resistance level at 104.25, which will be bearish for EUR/USD.

There are no important economic reports scheduled to be released in the EU today, so foreign exchange market traders will focus on the Wholesale Inventories and Consumer Inflation Expectations reports from the U.S.

Analysts expect that Wholesale Inventories increased by 2.3% month-over-month in March. Consumer Inflation Expectations are projected to rise from 6.6% in March to 6.8% in April.

Traders will also keep an eye on the developments in U.S. government bond markets as Treasury yields are testing new highs, which is bullish for the American currency.

Technical Analysis

eur usd may 9 2022

 

EUR/USD is testing the support level at 1.0500. If EUR/USD manages to settle below this level, it will head towards the next support level at 1.0485.

A move below the support at 1.0485 will open the way to the test of the support level at 1.0460. In case EUR/USD declines below this level, it will head towards the next support, which is located at 1.0430.

On the upside, a move above 1.0525 will push EUR/USD towards the resistance level at 1.0550. In case EUR/USD gets back above this level, it will head towards the next resistance, which is located at 1.0580. A move above this level will open the way to the test of the resistance at 1.0600.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Tests Support At 1.2275

Key Insights

  • British pound is losing ground as traders are worried about the health of the British economy. 
  • Treasury yields continue to move higher, which is bullish for the U.S. dollar. 
  • A successful test of the support at 1.2275 will push GBP/USD towards the next support level at 1.2260.

British Pound Remains Under Strong Pressure At The Start Of The Week

GBP/USD  is currently trying to settle below the support level at 1.2275, while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is testing the resistance level at 104. In case this test is successful, the U.S. Dollar Index will move towards the next resistance level at 104.25, which will be bearish for GBP/USD.

Today, foreign exchange market traders will take a look at the Wholesale Inventories report from the U.S. Analysts expect that Wholesale Inventories increased by 2.3% month-over-month in March after growing by 2.6% in February.

Traders will also focus on the U.S. Consumer Inflation Expectations report for April. The report is expected to show that Consumer Inflation Expectations increased from 6.6% in March to 6.8% in April.

It should be noted that Treasury yields continue to move higher, and the yield of 30-year Treasuries is trying to get above the 3.25% level. A move above this level will open the way to the test of the 3.30% level, which will be bullish for the U.S. dollar.

Technical Analysis

gbp usd may 9 2022

GBP/USD is testing the support level at 1.2275. In case this test is successful, GBP/USD will head towards the next support, which is located at 1.2260.

A move below the support at 1.2260 will open the way to the test of the next support level at 1.2240. If GBP/USD declines below this level, it will head towards the support level at 1.2200.

On the upside, the previous support at 1.2290 will serve as the first resistance level for GBP/USD. If GBP/USD manages to settle back above this level, it will head towards the next resistance level at 1.2325.

A successful test of the resistance at 1.2325 will push GBP/USD towards the next resistance at 1.2365. In case GBP/USD moves above this level, it will head towards the resistance at 1.2380.

For a look at all of today’s economic events, check out our economic calendar.

Best Airline Stocks To Buy In May

Key Insights

  • Earnings estimates for leading airline stocks keep moving higher. 
  • Analysts expect that airline companies have enough pricing power to offset the negative impact of higher fuel prices. 
  • The market also expects a robust rebound of internatinal and business travel, which is bullish for airline stocks.

Airline stocks have recently pulled back due to general market pressure, but the leading stocks in the industry continue to trade well above yearly lows as traders expect strong demand during the summer season.

Delta Air Lines

Analyst estimates for Delta Air Lines contine to move higher at a robust pace. Currently, the company is expected to report earnings of $2.83 per share in 2022 and $6.21 per share in 2023, so the stock is trading at less than 7 forward P/E.

This cheap valuation could be explained by the general market weakness. In addition, some traders are worried that rising oil prices will ultimately hurt profitability, so analysts would have to revise their profit forecasts.

However, it looks that pent-up demand for travelling is strong, so Delta Air Lines should have enough pricing strength to offset the negative impact of rising fuel costs.

Southwest Airlines

The big picture is similar for Southwest Airlines. Analysts estimates have recently moved to new highs due to strong pricing and expectations of the recovery of international and business travel.

The company is expected to report earnings of $2.43 per share this year and $3.77 per share in the next year, so the stock is trading at 12 forward P/E. This is expensive compared to Delta Air Lines, but the premium is explained by Southwest’s lower debt levels, which make it a safer investment.

It should be noted that both stocks have easily outperformed S&P 500 this year, and it looks that they will remain strong performers unless we see a major rally in the oil market.

For a look at all of today’s economic events, check out our economic calendar.

Peloton Is Down By 10%, Here Is Why

Key Insights

  • Peloton is reportedly searching for an investor that could buy a minority stake in the company. 
  • If confirmed, the report signals that the company is facing material problems. 
  • The current market environment is bearish for Peloton as investors rush out of unprofitable companies. 

Peloton Stock Declines After Report Indicates That It Is Searching For A Minority Investment

Shares of Peloton found themselves under pressure after a Wall Street Journal report indicated that the company was searching for investors who were willing to pay for 15% – 20% stake in the business.

Back in February, traders speculated that Amazon, Nike or Apple could buy the company. However, the potential deal never materialized, and Peloton stock has moved to yearly lows.

The WSJ report served as a negative catalyst for Peloton stock as it indicated that the company failed to sell itself and was trying to raise more cash to support the turnaround of its business. The company’s desire to sell a stake is certainly viewed as a sign of financial weakness.

What’s Next For Peloton Stock?

Currently, analysts expect that Peloton will report a loss of $3.92 per share in the current year and a loss of $1.1 per share in the next year, so the company is not expected to be profitable in the near term.

The market is worried that Peloton has already seen peak demand for its products, and that consumers’ preferences have already shifted after the end of the acute phase of the pandemic.

In additon, inflation and supply chain problems may put more pressure on the company’s bottom line. More, the rising interest rate environment is bearish for unprofitable companies like Peloton. In this light, it remains to be seen whether speculative traders will be ready to buy the stock after the current pullback.

For a look at all of today’s economic events, check out our economic calendar.

Silver Retreats As Gold/Silver Ratio Tests The 84 Level

Key Insights

  • Silver is losing ground despite the recent pullback of the U.S. Dollar Index. 
  • Meanwhile, gold is testing the resistance at $1880.
  • A move below the support at $22.30 will push silver towards the next support level at $22.10.

Silver ETF Is Under Pressure Ahead Of The Weekend

Silver  is currently trying to settle below the support at $22.30, while the U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle below $20.70.

The U.S. Dollar Index faced resistance near the 104 level and declined below the support at 103.60. The next support level for the U.S. Dollar Index is located at 103.25. If the U.S. Dollar Index settles below this level, it will head towards the support at 103, which will be bullish for silver and gold price today.

Gold is trying to settle above the $1880 level, while SPDR Gold Shares ETF is trading above the $175 level. If gold moves above the resistance at $1880, it will head towards the next resistance at $1890, which will be bullish for silver.

Gold/silver ratio continues its attempts to settle above the 84 level. RSI for the gold/silver ratio is in the overbought territory, but there is enough room to gain additional upside momentum in case the right catalysts emerge. If gold/silver ratio settles above 84, it will move towards the 85 level, which will be bearish for silver.

Technical Analysis

silver may 6 2022

Silver is testing the support level at $22.30. In case this test is successful, silver will get to another test of the next support, which is located at $22.10.

A move below the support level at $22.10 will open the way to the test of the support at $21.90. If silver manages to settle below this level, it will head towards the next support at $21.70.

On the upside, the nearest resistance level for silver is located at $22.50. If silver settles back above this level, it will head towards the next resistance at $22.70. A successful test of the resistance at $22.70 will push silver towards the resistance at $22.90.

For a look at all of today’s economic events, check out our economic calendar.

Gold Rebounds After Yesterday’s Pullback

Key Insights

  • Gold failed to settle below the support at $1865 despite rising yields. 
  • The U.S. Dollar Index declined after an unsuccessful attempt to settle above 104, which was bullish for gold. 
  • A move above $1880 will push gold towards the resistance at $1890.

Gold

Gold received support near $1865 and is heading towards the $1880 level as the U.S. dollar pulls back from yearly highs.

The U.S. Dollar Index has recently made an attempt to settle above the 104 level but faced strong resistance and declined towards 103.60. The American currency is supported by rising Treasury yields.

The yield of 30-year Treasuries continues its attempts to settle above the 3.15% level, while the yield of 10-year Treasuries has managed to get above the 3.05% level.

A combination of strong dollar and rising Treasury yields is bearish for gold that pays no interest. At the same time, gold gets some support from the rising demand for safe-haven assets. This demand may increase further in case S&P 500 settles below the 4100 level and continues its pullback.

VanEck Gold Miners ETF made an attempt to settle above the $36 level during yesterday’s trading session but lost momentum and pulled back below the $35 level amid a broad market sell-off. Today, this pullback could be continued as S&P 500 futures are losing ground in premarket trading.

Technical Analysis

gold may 6 2022

Gold failed to settle below the support at $1865 and is moving towards the resistance level at $1880. If gold settles back above this level, it will head towards the resistance at $1890.

A successful test of the resistance at $1890 will open the way to the test of the next resistance at $1900. In case gold moves above this level, it will head towards the 50 EMA, which is located at $1910.

On the support side, gold needs to settle below the support at $1865 to have a chance to develop downside momentum in the near term. The next support level for gold is located at $1850. If gold declines below the support at $1850, it will head towards the next support level at $1830.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Tries To Stabilize Above 1.0500

Key Insights

  • EUR/USD receives support near yearly lows. 
  • Today, traders will focus on Non Farm Payrolls and Unemployment Rate reports from the U.S. 
  • A move above 1.0525 will push EUR/USD back to the resistance at 1.0550.

Euro Is Mostly Flat Against U.S. Dollar

EUR/USD is currently trying to settle back above 1.0525, while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the 104 level but lost momentum and pulled back towards 103.80. In case the U.S. Dollar Index settles below this level, it will head towards the support level at 103.60, which will be bullish for EUR/USD.

Today, foreign exchange market traders will focus on the economic data from the U.S. Non Farm Payrolls report is expected to show that the economy added 391,000 jobs in April. Unemployment Rate is expected to decline from 3.6% in March to 3.5% in April.

These job market reports will have a material impact on currency dynamics. The market is extremely sensitive to any changes in Fed policy outlook, and the situation in the job market plays a key role in Fed decision making.

Technical Analysis

eur usd may 6 2022

EUR/USD is testing the resistance level at 1.0525. In case this test is successful, EUR/USD will get to another test of the next resistance level, which is located at 1.0550.

A move above the resistance at 1.0550 will push EUR/USD towards the next resistance at 1.0580. In case EUR/USD manages to climb back above this level, it will head towards the resistance level at 1.0600.

On the support side, the nearest support level for EUR/USD is located at 1.0500. If EUR/USD moves below this level, it will head towards the next support at 1.0485.

RSI remains in the moderate territory, and there is enough room to gain additional downside momentum in case the right catalysts emerge. If EUR/USD declines below 1.0485, it will head towards the support level at 1.0460.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Tests Support At 1.2330

Key Insights

  • Yesterday, BoE raised the interest rate from 0.75% to 1.00%.
  • The bank forecasts that CPI inflation could exceed 10% in the fourth quarter of this year. 
  • A move below 1.2330 will push GBP/USD towards the next support level at 1.2315.

British Pound Remains Under Strong Pressure After BoE Interest Rate Decision

GBP/USD is currently trying to settle below the support at 1.2330, while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is testing the resistance level at 103.80. In case this test is successful, the U.S. Dollar Index will move towards the 104 level, which will be bearish for GBP/USD.

Yesterday, the Bank of England raised the interest rate from 0.75% to 1.00%, in line with the analyst consensus. The Bank noted that CPI inflation could get above the 10% level at its peak in the fourth quarter of 2022 due to rising household energy prices. At the same time, the Bank expects that UK GDP growth will slow sharply.

The weak outlook served as the key bearish catalyst for the British pound, which declined towards levels that were last seen back in 2020. Traders bet that BoE will not be able to raise its interest rate aggressively as the economy is too weak, while the Fed would push the rate above the 2.00% level in 2022.

Technical Analysis

gbp usd may 6 2022

GBP/USD is testing the support level at 1.2330. In case GBP/USD manages to settle below this level, it will head towards the next support, which is located at 1.2315.

A successful test of the support at 1.2315 will open the way to the test of the next support at 1.2290. If GBP/USD declines below this level, it will head towards the support level at 1.2260.

On the upside, the previous support level at 1.2365 will serve as the first resistance level for GBP/USD. If GBP/USD climbs back above this level, it will head towards the next resistance at 1.2380. A move above this level will push GBP/USD towards the resistance at 1.2410.

For a look at all of today’s economic events, check out our economic calendar.

Best Fertilizer Stocks To Buy In May

Key Insights

  • Demand for fertilizer stocks remains strong after the recent pullback. 
  • Earnings estimates continue to move higher as analysts realize that high fertilizer prices would be sustainable. 
  • The market has not priced in the potential upside from high prices, and leading fertilizer stocks are trading at attractive valuation levels. 

While S&P 500 continues to trade near yearly lows, the upside trend in fertilizer stocks remains strong. This not surprising given the bullish sentiment in agricultural markets.

Nutrien

Nutrien has recently released its first-quarter earning report, missing analyst estimates on earnings. Nevertheless, earnings estimates continued to move higher.

Currently, analysts expect that Nutrien will report earnings of $15.89 per share in 2022 and $12.46 per share in 2023, so the stock is trading at roughly 8 forward P/E, which is cheap for the current market environment.

The bullish outlook for fertilizer markets and the increasing attractiveness of low-PE assets amid rising yields could provide more support to Nutrien stock and push it back to the yearly highs near the $117 level.

Mosaic

The recent quarterly report from Mosaic has also missed analyst estimates. The company reported revenue of $3.92 billion and adjusted earnings of $2.41 per share.

As in Nutrien’s case, earnings estimates continued to move higher. Mosaic is expected to report earnings of $13.61 per share in 2022 and $10.31 per share in 2023, so the stock is trading at just 6 forward P/E, which is extremely cheap.

It looks that the market is worried that fertilizer prices will pull back in the second half of the year, so traders are not ready to assign better valuation to Mosaic. However, the current valuation levels look too cheap, and there is enough room for multiple expansion, which could push the stock closer to its recent highs near the $80 level.

For a look at all of today’s economic events, check out our economic calendar.

Shopify Is Down By 17%, Here Is Why

Key Insights

  • Shopify’s first-quarter report missed analyst estimates on both earnings and revenue. 
  • The company announced that it would buy Deliverr for $2.1 billion. 
  • Shopify stock remains expensive even after the huge pullback from November highs. 

Shopify Stock Falls After Disappointing Q1 Report

Shares of Shopify  gained strong downside momentum after the company released its first-quarter results. The company reported revenue of $1.2 billion and adjusted earnings of $0.20 per share, missing analyst estimates on both earnings and revenue.

Shopify has also announced that it planned to acquire e-commerce fulfillment technology provider Deliverr. The transaction is valued at approximaterly $2.1 billion, including 80% in cash and 20% in Shopify Class A voting shares.

The earnings miss and the Deliverr acquisition have served as bearish catalysts for Shopify stock, which moved towards the $400 level. Back in November 2021, Shopify touched highs near $1763, so the stock has already lost more than 75% of its value.

What’s Next For Shopify Stock?

Analysts expect that Shopify will report earnings of $4.06 per share in the current year and $6.32 per share in the next year, so the stock is trading at 63 forward P/E, which is expensive.

Analysts estimates have been moving lower in recent months, and this trend will likely remain intact after the release of the first-quarter report.

The company remains expensive even after a huge pullback, and it remains to be seen whether speculative traders will be ready to buy the stock in the rising interest rate environment. Today, the yield of 30-year Treasuries moved towards 3.15%, a level that was last seen back in 2019.

Shopify’s current valuation is the reason why the market did not like the deal with Deliverr. Put simply, traders are moving out of growth stocks due to rising interest rates, so such a purchase from a high-PE company is viewed as a negative catalyst.

For a look at all of today’s economic events, check out our economic calendar.

Silver Gains Ground Despite Strong Dollar

Key Insights

  • Silver gained upside momentum as gold moved back to the $1900 level. 
  • The rising gold/silver ratio remains an important bearish catalyst for silver. 
  • A move above $23.10 will push silver towards the resistance at $23.25.

Silver ETF Continues To Rebound

Silver is currently trying to settle above the resistance at $23.10, while the U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust continues to trade above the $21 level.

Yesterday’s pullback was short-lived, and the U.S. Dollar Index returned to the resistance at 103.25. If the U.S. Dollar Index settles above this level, it will head towards the next resistance at 103.60, which will be bearish for silver and gold price today.

Gold  is testing the resistance level at $1900, while SPDR Gold Shares ETF moved towards the $177 level. If gold settles above $1900, it will head towards the next resistance at the 50 EMA at $1915, which will be bullish for silver.

Gold/silver ratio found support near the 82 level and rebounded towards 82.50. A move above this level will open the way to the test of the 83 level, which will be bearish for silver.

Technical Analysis

silver may 5 2022

Silver is testing the resistance level at $23.10. If silver settles above this level, it will get to another test of the resistance at $23.25.

A move above the resistance at $23.25 will push silver towards the resistance at $23.50. In case silver climbs above $23.50, it will head towards the resistance at $23.70.

On the support side, the nearest support level for silver is located at $22.90. In case silver manages to settle below this support level, it will head towards the next support at $22.70.

RSI has recently moved out of the oversold territory, so there is enough room to gain additional downside momentum in case the right catalysts emerge. If silver settles below $22.70, it will head towards the support level at $22.50.

For a look at all of today’s economic events, check out our economic calendar.

Gold Gains Ground Despite Fed Rate Hike

Key Insights

  • The Fed was less hawkish than expected, providing significant support to gold markets. 
  • Gold mining stocks continue to rebound at a robust pace. 
  • A move above $1900 will push gold towards the resistance level at $1915.

Gold Stays Strong After Fed Interest Rate Decision

Gold is trying to settle above the $1900 level as traders focus on new interest rate projections after yesterday’s Fed Interest Rate Decision.

The Fed raised the interest rate from 0.5% to 1.0% and announced that it would start reducing the size of its balance sheet in June. At the same time, comments of the Fed Chair Jerome Powell were less hawkish than expected, and traders quickly adjusted their interest rate forecasts.

Currently, the market expects that the interest rate will be raised to 1.25% on June 15. Previously, traders were ready for a 1.75% rate, so the change in expectations was dramatic. Not surprisingly, such a change provided significant support to gold markets, which are sensitive to interest rate expectations.

VanEck Gold Miners ETF continued to rebound and settled above $35.50. The nearest significant resistance level for VanEck Gold Miners ETF is located at $36.00. In case GDX manages to settle above this level, it will gain additional upside momentum.

Technical Analysis

gold may 5 2022

Gold is testing the resistance level at $1900. In case this test is successful, gold will move towards the next resistance, which is located at the 50 EMA at $1915.

A move above the 50 EMA will open the way to the test of the resistance at $1925. In case gold manages to settle above this level, it will head towards the next resistance at $1935.

On the support side, the previous resistance level at $1890 will serve as the first support level for gold. If gold settles back below this level, it will head towards the next support at $1880. A successful test of this level will push gold towards the support at $1865.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Tests Support At 1.0600

Key Insights

  • EUR/USD pulls back after yesterday’s rally. 
  • Today, traders will focus on the job market data from the U.S. 
  • A move below 1.0600 will push EUR/USD towards the support level at 1.0580.

U.S. Dollar Gains Ground Against Euro

EUR/USD is currently trying to settle below the support at 1.0600, while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is testing the resistance level at 102.75. If this test is successful, the U.S. Dollar Index will head towards the 103 level, which will be bearish for EUR/USD.

Yesterday, EU reported that Euro Area Retail Sales declined by 0.4% month-over-month in March, compared to analyst consensus which called for a decline of 0.1%.

Today, foreign exchange market traders will focus on the job market data from the U.S. Initial Jobless Claims report is expected to show that 182,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 1.41 million to 1.4 million.

Traders will also keep an eye on the developments in U.S. government bond markets. Yesterday’s comments from Fed Chair Jerome Powell were less hawkish than expected, but Treasury yields stay close to their recent highs. In case yields continue to move higher, the U.S. dollar will get more support.

Technical Analysis

eur usd may 5 2022

EUR/USD is testing the support level at 1.0600. In case this test is successful, EUR/USD will move towards the next support, which is located at 1.0580.

A move below the support at 1.0580 will open the way to the test of the support at 1.0550. If EUR/USD declines below this level, it will head towards the next support level at 1.0525.

On the upside, the nearest resistance level for EUR/USD is located at 1.0630. If EUR/USD settles above this level, it will head towards the next resistance at 1.0650. A successful test of the resistance at 1.0650 will push EUR/USD towards the resistance at the 20 EMA at 1.0680.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Pulls Back Ahead Of BoE Interest Rate Decision

Key Insights

  • GBP/USD is moving lower after yesterday’s rally. 
  • Today, foreign exchange market traders will focus on the BoE Interest Rate Decision. 
  • A move below the support at 1.2530 will push GBP/USD towards the next support level at 1.2510.

British Pound Is Losing Ground Against U.S. Dollar

GBP/USD is currently trying to settle back below the support at 1.2530, while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index rebounds after yesterday’s sell-off. Currently, it is trying to settle back above the resistance at 102.75. In case this attempt is successful, the U.S. Dollar Index will move towards the next resistance level at 103, which will be bearish for GBP/USD.

Yesterday, the Fed raised the interest rate from 0.5% to 1.0% and said that it will begin to reduce the size of its balance sheet in June. The comments of the Fed Chair Jerome Powell were more dovish than expected, and the U.S. dollar found itself under material pressure.

Today, traders will focus on the BoE Interest Rate Decision. Analysts expect that BoE will increase the interest rate from 0.75% to 1.0%.

In addition, traders will have a chance to take a look at the final reading of the UK Services PMI report for April. The report is expected to show that UK Services PMI declined from 62.6 in March to 58.3 in April.

Technical Analysis

gbp usd may 5 2022

GBP/USD has pulled back towards the support level at 1.2530. In case GBP/USD manages to settle back below this level, it will head towards the next support, which is located at 1.2510.

A move below the support at 1.2510 will open the way to the test of the support at 1.2475. If GBP/USD declines below this level, it will head towards the next support level at 1.2450.

On the upside, the nearest resistance level for GBP/USD is located at 1.2565. If GBP/USD manages to settle back above this level, it will head towards the resistance level at 1.2600. A successful test of the resistance at 1.2600 will push GBP/USD towards the resistance at 1.2630.

For a look at all of today’s economic events, check out our economic calendar.

Best Gold Mining Stocks To Buy In May

Key Insights

  • Gold mining stocks pulled back together with the price of gold. 
  • Kinross Gold was under pressure due to its exposure to Russia, but the company managed to reach a deal to sell its Russian assets. 
  • AngloGold Ashanti stock is valued at less than 10 forward P/E, which is cheap for the current market environment. 

Gold has recently suffered a serious pullback as traders focused on rising Treasury yields. At the same time, S&P 500 is trading near yearly lows, so demand for safe-haven assets may increase soon. In this market environment, it’s time to take a look at some gold mining stocks.

Kinross Gold

Kinross Gold  is currently trading near yearly lows. The company’s assets in Russia have served as the main bearish catalyst for the stock.

However, Kinross Gold has already arranged a deal with Highland Gold and will sell 100% of its Russian assets for a total consideration of $680 million in cash. The company has also decided to sell its 90% interest in Chirano mine in Ghana for $225 million.

The sales will decrease Kinross’ production in the upcoming years, and the company will present its new guidance when it reports its first-quarter results. Meanwhile, the stock is trading at just 10 forward P/E, which is cheap compared to major peers, and it looks that many negative catalysts have been already priced in by the market.

AngloGold Ashanti

Another major gold mining company that is trading at less than 10 forward P/E is AngloGold Ashanti. The stock is mostly flat year-to-date, and the recent pullback was caused by the material sell-off in gold markets.

Any bet on a gold mining company is also a bet on the price of gold, so AngloGold Ashanti stock will need more support from gold markets to have sustainable upside.

It should be noted that AngloGold Ashanti will release its first-quarter results on May 9, and this release will serve as an additional catalyst for the stock.

For a look at all of today’s economic events, check out our economic calendar.

Starbucks Is Up By 7%, Here Is Why

Key Insights

  • Starbucks reported quarterly results, whcih were mostly in line with analyst expectations. 
  • The company had a strong quarter in the U.S.
  • Starbucks stock had recently declined to reasonable valuation levels, but it will likely need more positive catalysts for sustainable upside. 

Starbucks Stock Rallies As Weakness In China Is Offset By Strong Sales In The U.S.

Shares of Starbucks gained strong upside momentum after the company released its quarterly results. Starbucks reported revenue of $7.6 billion and adjusted earnings of $0.59 per share, mostly in line with analyst estimates.

The company noted that global comparable store sales increased by 7%. In North America and U.S., comparable store sales increased by 12%. Meanwhile, China comparable store sales declined by 23% due to the negative impact of coronavirus-related lockdowns.

The surprising strength of Starbucks’ business at home offset the problems in China and provided significant support to the company’s stock. It should be noted that Starbucks stock was down by more than 35% year-to-date before the release of the report, so market’s expectations were low.

What’s Next For Starbucks Stock?

Analysts expect that Starbucks will report earnings of $3.22 per share in the current fiscal year and earnings of $3.73 per share in the next fiscal year, so the stock is trading at 21 forward P/E.

Analyst estimates have been moving lower in recent months, which is not surprising as analysts reacted to the company’s problems in China. It remains to be seen whether the recent quarterly report will be able to change this trend.

While Starbucks valuation has declined to reasonable levels, the stock’s near-term dynamics will depend on general market sentiment. In case the market’s pullback continues, Starbucks stock will also find itself under pressure as it does not have enough positive catalysts to go against the general market trend.

For a look at all of today’s economic events, check out our economic calendar.

Silver Declines As Gold/Silver Ratio Moves To New Highs

Key Insights

  • Silver remains under pressure ahead of the Fed Interest Rate Decision. 
  • Gold/silver ratio is trying to get to the test of the 84 level, which is bearish for silver. 
  • A successful test of the support at $22.50 will push silver towards the next support level at $22.10.

Silver ETF Is Losing Ground At The Start Of The Trading Session

Silver continues its attempts to settle below the support at $22.50, while the U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust  is trying to settle below $20.50.

The U.S. Dollar Index is testing the support level at 103.25. In case the U.S. Dollar Index manages to settle below this level, it will head towards the support at 103, which may provide some support to silver and gold price today.

Gold is trading near the $1870 level as traders wait for the Fed Interest Rate Decision, while SPDR Gold Shares ETF is moving towards $174.50. The nearest resistance level for gold is located at $1880. In case gold gets to the test of this level, silver will get more support.

Gold/silver ratio has recently made another attempt to settle above the resistance at 83.50 but failed to develop sufficient upside momentum and pulled back. In case gold/silver ratio settles above this level, it will head towards the 84 level, which will be bearish for silver.

Technical Analysis

silver may 4 2022

Silver is testing the support level at $22.50. In case silver manages to settle below this level, it will head towards the next support, which is located at $22.10.

A move below the support at $22.10 will push silver towards the support level at $21.90. If silver declines below this level, it will head towards the support at $21.70.

On the upside, a move above $22.50 will push silver towards the resistance at $22.70. If silver settles above $22.70, it will head towards the next resistance level at $22.90. A successful test of this level will push silver towards the resistance at $23.10.

For a look at all of today’s economic events, check out our economic calendar.

Gold Moves Higher As Traders Wait For Fed

Key Insights

  • Gold gains some ground ahead of the Fed Interest Rate Decision. 
  • Trading action will likely remain choppy as traders wait for Powell’s comments. 
  • A move above $1880 will push gold towards the resistance at $1890.

Gold Continues To Rebound

Gold managed to get above the resistance level at $1865 and is moving towards the next resistance at $1880, while traders wait for the release of the Fed Interest Rate Decision.

Today, the U.S. dollar lacks momentum against a broad basket of currencies. Trading action is also calm in the U.S. government bond markets. Everyone is waiting for the Fed decision and the subsequent commentary from Fed Chair Jerome Powell, which will have a significant impact on markets.

Gold markets have recently found themselves under significant pressure as yields were rising and traders prepared for an aggressive reduction of Fed’s balance sheet. In case Powell is not too hawkish, gold will have a chance to rebound.

Meanwhile, VanEck Gold Miners ETF managed to settle back above the $35 level during yesterday’s trading session. Today, VanEck Gold Miners ETF will be extremely sensitive to Fed’s commentary.

Technical Analysis

gold may 4 2022

Gold continues its attempts to settle above the resistance level at $1865. If gold manages to settle above this level, it will move towards the next resistance, which is located at $1880.

A move above the resistance at $1880 will open the way to the test of the resistance at $1890. In case gold settles above this level, it will head towards the next resistance at $1900.

On the support side, a move below $1865 will push gold towards the next support level at $1850. In case gold moves below this level, it will head towards the support level at $1830. A move below the support at $1830 will open the way to the test of the next support at $1815.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Stays Range-Bound Ahead Of Fed Interest Rate Decision

Key Insights

  • Today, traders will focus on the Fed Interest Rate Decision and the subsequent commentary. 
  • Traders will also take a look at Euro Area Services PMI and Euro Area Retail Sales reports. 
  • A move below 1.0500 will push EUR/USD towards the support at 1.0485.

Euro Is Mostly Flat Against U.S. Dollar

EUR/USD continues its attempts to settle above the resistance at 1.0525, while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made another attempt to settle above the resistance at 103.60 but failed to develop sufficient upside momentum and pulled back towards 103.50. In case the U.S. Dollar Index declines below 103.50, it may gain additional downside momentum and head towards the support level at 103.25, which will be bullish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at the final reading of Euro Area Services PMI report for April. Analysts expect that Euro Area Services PMI increased from 55.6 in March to 57.7 in April.

Euro Area Retail Sales are expected to decline by 0.1% month-over-month in March. On a year-over-year basis, Euro Area Retail Sales are projected to grow by 1.4%.

The main event of the day for markets is the Fed Interest Rate Decision. The Fed is expected to increase the interest rate from 0.5% to 1.0%, and markets will be extremely sensitive to comments from the Fed Chair Jerome Powell.

Technical Analysis

eur usd may 4 2022

EUR/USD continues to test the resistance level at 1.0525. If EUR/USD manages to settle above this level, it will move towards the next resistance at 1.0550.

In case EUR/USD climbs above the resistance at 1.0550, it will head towards the resistance at 1.0580. A move above this level will open the way to the test of the resistance at 1.0600.

On the support side, EUR/USD needs to settle below 1.0500 to have a chance to gain downside momentum in the near term. The next support level for EUR/USD is located at 1.0485.

In case EUR/USD manages to settle below 1.0485, it will head towards the support at 1.0460. A move below this level will open the way to the test of the support at 1.0430.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Tests Support At 1.2475

Key Insights

  • The main event of the day is the Fed Interest Rate Decision, which will have a significant impact on currency dynamics. 
  • Traders will also take a look at the ADP Employment Change report from the U.S. 
  • A move below the support at 1.2475 will push GBP/USD towards the next support level at 1.2450.

British Pound Remains Under Pressure Ahead Of The Fed Interest Rate Decision

GBP/USD is currently trying to settle below the support at 1.2475, while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index is located near the resistance level at 103.60. This resistance level has already been tested several times in recent trading sessions and proved its strength. If the U.S. Dollar Index settles above 103.60, it will move towards the next resistance at 103.80, which will be bearish for GBP/USD.

Today, foreign exchange market traders will focus on the Fed Interest Rate Decision and the subsequent commentary from Fed Chair Powell. The rate is expected to be raised from 0.5% to 1.0%, and the key question is whether Powell’s commentary is hawkish enough to trigger another dollar rally.

Traders will also have a chance to take a look at the ADP Employment Change report from the U.S. Analysts expect that the report will show that private businesses added 395,000 jobs in April.

Technical Analysis

gbp usd may 4 2022

GBP/USD is testing the support level at 1.2475. In case this test is successful, GBP/USD will move towards the next support, which is located at 1.2450.

A move below the support at 1.2450 will open the way to the test of the next support level at 1.2415. If GBP/USD declines below this level, it will head towards the support at 1.2390.

On the upside, the nearest resistance level for GBP/USD is located at 1.2510. In case GBP/USD manages to settle back above this level, it will head towards the resistance at 1.2530.

A successful test of the resistance at 1.2530 will push GBP/USD towards the resistance at 1.2565. In case GBP/USD gets above this level, it will head towards the next resistance level at 1.2600.

For a look at all of today’s economic events, check out our economic calendar.