Market Sector Scanner: Key Points to Watch: Stocks Extend Gains and Oil Falls on U.S.-Iran Deal Hopes

The week was shorter because of U.K. and U.S. holidays, and there was not much major economic data. U.S. GDP was weaker than expected, but durable goods data was stronger. U.S. and Japanese stocks kept rising, while USD/JPY moved higher as the Bank of Japan did not step in. Hopes for a U.S.-Iran ceasefire extension and the reopening of the Strait of Hormuz pushed oil prices lower and helped market sentiment. Fed officials stayed cautious on inflation.

Scan for opportunities on:

• Forex market (major currency pairs)
• Equities
• Commodities (gold)

Forex Market

USD/JPY

Last Week Recap
USD/JPY continued to test higher last week, moving closer to 160 as the interest rate gap between the U.S. and Japan remained large. High U.S. inflation also made it harder for markets to expect early U.S. rate cuts, while the Bank of Japan still did not intervene.

Technical Picture
The 10-day moving average acted as support last week and continues to point the market higher. The upper Bollinger Band is still not too close, suggesting there may still be some room for further gains.

Outlook This Week
USD/JPY has risen steadily over the past few weeks, but with resistance near 160 now close, traders should be careful. A move below the 10-day moving average could trigger a selling opportunity this week.

GBP/JPY

Last Week Recap
GBP/JPY continued to recover last week as yen weakness helped the market test higher. Focus also moved away from U.K. political concerns, which supported the rebound.

Technical Picture
The 10-day moving average is now pointing higher again, showing some improvement in the short-term trend. However, the upper Bollinger Band is nearby and may provide resistance.

Outlook This Week
With the yen unlikely to continue weakening significantly, GBP/JPY may offer range trading opportunities this week.

EUR/USD

Last Week Recap
Lower WTI oil prices helped ease pressure on long-term U.S. interest rates, allowing EUR/USD to end its recent downtrend. With little major economic news released last week, the pair found room to recover.

Technical Picture
EUR/USD found support near the lower Bollinger Band and moved back above the 10-day moving average. This signals more sideways price action for now.

Outlook This Week
Range trading may be the preferred strategy ahead of the important U.S. employment data at the end of the week.

Equities

U.S. Stock Market

Last Week Recap
In a shortened trading week, the Nasdaq uptrend continued as strong interest in AI-related stocks pushed the market to new record highs.

Technical Picture
The 10-day moving average continues to provide strong support, while the nearby upper Bollinger Band may act as resistance.

Outlook This Week
The uptrend may take a break in the coming weeks, but for now, traders may prefer to focus on buying opportunities as long as the market stays above the 10-day moving average.

Commodities

Gold

Last Week Recap
Gold fell below the May lows as recent selling continued. However, a drop in long-term U.S. interest rates, helped by falling WTI oil prices, supported a recovery and gold ended the week close to unchanged.

Technical Picture
The lower Bollinger Band again provided support, and the weekly close above the 10-day moving average was a positive sign.

Outlook This Week
The recent weakness looks like it may be coming to an end, with the quick recovery from the lows looking positive. Range trading may be the best strategy this week, while medium-term traders may prefer to focus on buying opportunities.

Traders will be watching the key U.S. employment data released on Friday. USD/JPY also remains important, as further yen weakness could increase the risk of Bank of Japan intervention. At the same time, markets will stay focused on U.S.-Iran negotiations and whether oil supply could increase.