
As you must already know, the direction of Gold is mainly dependent on the Price action of DXY (US Dollar index). So first, we take a look at the US Dollar index.
2020-12-16 • Updated
Well, as expected, Pfizer’s stock price fell. Why? Because the emotional wave that pushed it up is exhausted. It went to $43 on the vaccine news. But what was the news? That the vaccine is ready, that has more than 90% of efficacy, that it is to be distributed, etc. And that’s good enough. But the virus is still there, right? In the US and in Europe, the rates are as high as ever in certain regions, restrictions are double-enforced in some cities. Therefore, the joy of knowing that the vaccine is coming couldn’t have had but a temporary effect. In the meantime, the fundamental layout doesn’t offer any specific reason why Pfizer’s stock would leap and stay too excited. Is that a bad investment option then?
No, not at all. By releasing the vaccine, Pfizer confirmed that they are a solid pharma company – as they’ve been until now - able to deliver when needed. Probably, they needed this opportunity to shine again and spur its market capitalization back to the upside, and it happened exactly this way. In a downtrend since the second part of 2018, Pfizer’s stock recovered well from the virus hit and reached $40 – a level it last visited a year ago. Now, even with a local cooling off, this stock seems to be well set for the upside. Therefore, the suggestion to trade it is the following: go mid-term, give a while to cool off and reach a local bottom, the buy when you see a bullish reversal from the current downturn. If you reserve a month or so to hold it, it may well reach $42 again – that’s the recommended Take Profit for a position trading strategy. Don’t forget to put the Stop Loss: $36 appears to be appropriate to guard the downside.
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As you must already know, the direction of Gold is mainly dependent on the Price action of DXY (US Dollar index). So first, we take a look at the US Dollar index.
On January 12, the Bureau of Statistics will publish the Consumer Price Index (CPI) figures, a key index for determining interest rates. While we await the release, experts forecast a decline in the CPI data, a hint at weaker Dollar values in the global markets.
Later today Tiff Macklem, the governor of the BoC (Bank of Canada) is expected to speak at the Riksbank's International Symposium as part of a discussion panel on 'Central Bank Independence'.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
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