Daily Market Analysis By FXOpen

[FXOpenTeam]

Oracle Stock (ORCL) Surges Amid Trump’s Initiative

Stargate – an initiative unveiled by Donald Trump on his second day as president – represents a collaborative project between OpenAI, SoftBank, and Oracle to advance artificial intelligence infrastructure in the United States. The project’s partners also include Microsoft, MGX, Arm, and NVIDIA.

The initiative involves an initial $100 billion investment to construct a data centre in Texas, with total funding potentially increasing to $500 billion over four years. Additionally, President Trump has revoked an executive order from his predecessor, Joe Biden, issued in 2023, which aimed to mitigate risks associated with AI development.

Financial markets responded with a rally in tech stocks, with Oracle’s stock (ORCL) gaining over 7% in a single day.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Chinese Stocks Decline Amid Tariff Threats

According to Bloomberg, President Donald Trump raised the possibility of imposing tariffs on China during his second day in office.

“We’re considering a 10% tariff on China,” Trump announced during a White House event on Tuesday, indicating February 1 as a potential start date.

During his election campaign, Trump had mentioned tariffs as high as 60%, and the prospect of transitioning from campaign rhetoric to real action is driving bearish sentiment.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

High-Frequency Trading (HFT) in Forex and Stocks

High-Frequency Trading (HFT) has garnered significant attention due to its transformative impact on markets, reshaping the way they operate, influencing liquidity, price discovery, and overall efficiency. In this FXOpen article, we focus on high frequency forex and stock trading, its definition and its specific applications, pointing out the opportunities and challenges that this trading method presents.

High-Frequency Trading: An In-Depth Analysis

High-frequency trading represents a dynamic and swiftly evolving facet of the financial world. Understanding the basic HFT concept can help traders develop and employ advanced trading strategies.

Definition

At its essence, high-frequency trading is characterised by the swift execution of a substantial number of orders within exceptionally brief time intervals, often measured in milliseconds or microseconds. Traders engaged in HFT within the market leverage robust algorithms and state-of-the-art technology to scrutinise extensive sets of market data, facilitating swift and informed trading decisions. At the heart of HFT is its ability to harness even the slightest price differentials, allowing traders to take advantage of market inefficiencies that may elude traditional counterparts.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Dollar Range Trading Awaits Trump’s Directives

Following Donald Trump’s inauguration, the dollar lost part of this month’s gains on Monday and adjusted to significant support levels. However, there is no clear development of a full-scale downward correction as yet. Most currency pairs remain within their previous sideways corridors, awaiting new directives from the newly inaugurated president.

USD/JPY
The USD/JPY currency pair has once again tested the important range of 155.00–154.80. The inability of sellers to hold the price below 155.00 for two weeks could lead to another test of recent highs in the 157.00–157.80 zone.

Technical analysis of USD/JPY indicates a sideways movement of the pair. At present, the price is at the upper boundary of a five-day corridor. If it rebounds from the 156.70 level, a decline towards the 155.20–155.00 marks is possible.

A consolidation above 157.00 could result in an update of the year’s maximum at 158.90.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Netflix (NFLX) Shares Surge After Earnings Report

After the close of the main trading session on the stock market on Tuesday, Netflix released its Q4 2024 results. The report was exceptionally strong:

→ Analysts expected the company to add 9.18 million paid subscribers during the quarter, but the actual figure reached 18.91 million, which is 15.9% more than in the same quarter last year.
→ Total subscribers reached 300 million.
→ Earnings per share amounted to $4.27 (expected: $4.20).
→ Gross revenue: actual = $10.25 billion, expected = $10.11 billion.

The company’s success was supported by products such as Squid Game, Bridgerton, and Nobody Wants This. During the quarter, 55% of customers chose ad-supported plans, and subscriptions to this plan grew by 30%. Netflix executive Gregory Peters believes that advertising revenue could double between 2024 and 2025.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Germany’s DAX 40 Stock Index Hits Record High

The country’s Finance Minister, Jörg Kukies, stated in an interview with CNBC that it is crucial for Germany to enter a period of economic growth, adding that structural deficiencies need to be addressed.

“We have just received another downward revision of growth forecasts from the IMF,” he said at the World Economic Forum in Davos. The International Monetary Fund (IMF) now projects Germany’s GDP growth at 0.3% in 2025 and 1.1% in 2026, according to the January update of its World Economic Outlook. This marks a sharp decline from the October forecast of 0.8% growth in 2025.

Germany’s annual gross domestic product contracted in both 2023 and 2024. Quarterly GDP figures were also modest, although the economy has so far avoided a technical recession.

Kukies also remarked that domestic German companies are “under stress” but continue to perform “very well” on the global market, seemingly referencing the rise of the DAX 40 stock index (Germany 40 mini on FXOpen). Indeed, yesterday the index surpassed the 21,300-point level for the first time in history.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Advanced Order Types in ECN Trading

Electronic Communication Networks (ECN) have transformed the landscape of financial trading, offering direct market access and enhanced transparency. Central to ECN trading is the use of various order types, each tailored to specific strategies and risk management approaches. This article delves into advanced order types, providing traders with essential knowledge for navigating this dynamic trading environment.

Understanding ECN Trading

Electronic Communication Network (ECN) trading represents a pivotal development in financial markets, offering a pathway for traders to connect directly with each other without requiring intermediaries. This system functions through an electronic network that efficiently matches buy and sell trades, contributing to greater transparency and tighter spreads in the market.

In an ECN environment, traders can see the best available bid and ask prices, along with the market depth, which includes potential entries from various market participants. This visibility into the market’s order book enables more informed decision-making as traders gain insights into potential market movements and liquidity.

A key advantage of ECNs is the anonymity they provide, enabling traders to execute transactions without exposing their strategy. This feature is particularly effective for large-volume traders who wish to avoid market impact.

ECN brokers, like FXOpen, tend to offer lower costs compared to traditional market makers, as they typically charge a fixed commission per transaction rather than relying on the bid-ask spread. Such a cost structure can be advantageous for active traders and those employing high-frequency trading strategies.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Bank of Japan Raises Rates, Yen Strengthens

The Bank of Japan (BOJ) has raised short-term interest rates to 0.5%, the highest level in 17 years. While this move was anticipated, the currency market responded with a significant strengthening of the yen, with USD/JPY falling by approximately 0.6%.

At a press conference, BOJ Governor Ueda stated that there is no predetermined course for future rate adjustments. Meanwhile, media reports cite analysts’ opinions suggesting that the rate could be raised again before the end of 2025.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

S&P 500 Index Sets Record High

As shown by the S&P 500 chart (US SPX 500 mini on FXOpen), the stock index:
→ has increased by approximately 3.5% since the start of the year;
→ surpassed its previous all-time highs set in December.

Market participants’ optimism was driven by:
→ a strong start to earnings season and expectations of robust reports from major tech companies;
→ statements made by Donald Trump at the Davos forum, where the US president urged Saudi Arabia to lower oil prices and expressed the view that interest rates should be reduced. Overall, such measures are expected to foster economic growth.

Reuters quoted Lindsay Bell, Chief Strategist at 248 Ventures: buyers “like the idea of interest rates coming down, of oil prices coming down. All in all, the market is optimistic the more they hear about Trump policies. We’re just seeing a reflection of that optimism.”

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

What Are Financial Derivatives and How to Trade Them?

Financial derivatives are powerful instruments used by traders to speculate on market movements or manage risk. From futures to CFDs, derivatives offer potential opportunities across global markets. This article examines “What is a derivative in finance?”, delving into the main types of derivatives, how they function, and key considerations for traders.

What Are Derivatives?

A financial derivative is a contract with its value tied to the performance of an underlying asset. These assets can include stocks, commodities, currencies, ETFs, or market indices. Instead of buying the asset itself, traders and investors use derivatives to speculate on price movements or manage financial risk.

Fundamentally, derivatives are contracts made between two parties. They allow one side to take advantage of changes in the asset’s price, whether it rises or falls. For example, a futures contract locks in a price for buying or selling an asset on a specific date, while a contract for difference (CFD) helps traders speculate on the price of an asset without owning it.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Market Analysis: AUD/USD and NZD/USD Bounce Back: Are Further Gains Ahead?

AUD/USD started a decent increase above the 0.6200 and 0.6250 levels. NZD/USD is also rising and might aim for more gains above 0.5685.

Important Takeaways for AUD USD and NZD USD Analysis Today
· The Aussie Dollar rallied after forming a base above the 0.6165 level against the US Dollar.

· There is a key bullish trend line forming with support at 0.6290 on the hourly chart of AUD/USD at FXOpen.

· NZD/USD is consolidating gains from the 0.5650 zone.

· There is a major bullish trend line forming with support at 0.5685 on the hourly chart of NZD/USD at FXOpen.

AUD/USD Technical Analysis

On the hourly chart of AUD/USD at FXOpen, the pair started a fresh increase from the 0.6165 support. The Aussie Dollar was able to clear the 0.6200 resistance to move into a positive zone against the US Dollar.

There was a close above the 0.6250 resistance and the 50-hour simple moving average. Finally, the pair tested the 0.6330 zone. A high was formed near 0.6330 and the pair recently saw a minor pullback.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

XNG/USD Analysis: Bears Pressure Key Support

On 5 December, while analysing the natural gas chart, we noted that price movements:
→ were forming an ascending channel (shown in blue);
→ support from the lower boundary of the channel (reinforced by the psychological level of 3.000) was already evident in a nascent price reversal (indicated by an arrow).

As the XNG/USD chart illustrates, since that time (marked by a blue arrow), the price indeed rose, using the support from the lower boundary of the channel to reach its upper boundary on 30 December.

However, we now see supply forces displaying aggression – whenever the natural gas price climbs above 3.700, bears quickly intervene (marked by red arrows), pushing the price back down.

What could happen next?

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Apple (AAPL) Stock Price Analysis: Worst Start to the Year Since 2008

On 27 December, while analysing Apple (AAPL) stock, we noted: “Traders should consider the possibility of a pullback below the key psychological level of $250, with the price potentially retreating to the lower purple boundary.”

A month later, Bloomberg reports:

→ By the close of trading on Friday, 24 January, the company’s shares had fallen 11% since the start of 2025, marking the worst performance among the “Big Seven” companies.

→ This represents the worst start for AAPL shares since 2008, when the global financial crisis was in full swing.

→ Apple has also significantly underperformed the S&P 500, which has risen approximately 3.7% this year and hit a new record high earlier this week.

Can the bulls reverse this disappointing trend?

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Market Insights with Gary Thomson: BoC, Fed & ECB Interest Rates, PCE Price Index, Earnings Reports

In this video, we’ll explore the key economic events, market trends, and corporate news shaping the financial landscape. Get ready for expert insights into forex, commodities, and stocks to help you navigate the week ahead. Let’s dive in!

In this episode:

• BoC Interest Rate Decision
• Fed Interest Rate Decision
• ECB Interest Rate Decision
• US PCE Price Index
• Corporate Earnings Statements

Stay in the know and empower yourself with our short, yet power-packed video.

Watch it now and stay updated with FXOpen.

Don’t miss out on this invaluable opportunity to sharpen your trading skills and make informed decisions.

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Index Investing: A Practical Approach to Market Participation

Index investing has become a popular way for traders and investors to access the broader market. By tracking the performance of financial indices like the S&P 500 or FTSE 100, index investing offers diversification, lower costs, and steady exposure to market trends. This article explores how index investing works, its advantages, potential risks, and strategies to suit different goals.

Index Investing Definition

Index investing is a strategy where traders and investors focus on tracking the performance of a specific financial market index, such as the FTSE 100 or S&P 500. These indices represent a collection of stocks or other assets, grouped to reflect a segment of the market. Instead of picking individual assets, index investors aim to match the returns of the entire index by investing in a fund that mirrors its composition.

For example, if an investor puts money in a fund tracking the Nasdaq-100, it’s effectively spread across all companies in that index, including tech giants like Apple or Microsoft. This approach provides instant diversification, as the investor is not reliant on the performance of a single stock.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Nvidia (NVDA) Stock Price Drops by Approximately 17%

The start of 2025 appeared favourable for Nvidia (NVDA) shares from a fundamental perspective:

→ On 6 January, Nvidia CEO Jensen Huang delivered a keynote at the Consumer Electronics Show (CES).

→ On 22 January, the company’s stock prices rose following President Trump’s Stargate project announcement.

However, news from China triggered a sharp decline, with Nvidia’s stock price plunging approximately 17% yesterday, as shown on the Nvidia (NVDA) chart.

According to Reuters, last week the Chinese startup DeepSeek launched a free AI assistant requiring minimal resources. By Monday, the assistant had surpassed its American rival, ChatGPT, in downloads from Apple’s App Store.

CNN reports that the R1 model is both powerful and significantly cheaper than AI technologies from OpenAI, Google, or Meta. DeepSeek claimed to have spent just $5.6 million on its base model, compared to the hundreds of millions or billions invested by American companies in their AI technologies.

This may have led market participants to conclude that the AI industry requires fewer Nvidia chips than previously thought, prompting a sell-off of Nvidia shares. This decline also impacted other companies in the sector, with sharp drops in Oracle (ORCL), Broadcom (AVGO), and others.

As a result, Nvidia lost its title as “the world’s most valuable company” to Apple, and its CEO saw his fortune decrease by 20%.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

What Is a Spot Rate and How It Is Used in Trading?

Spot rates are a cornerstone of trading, reflecting the real-time price for immediate settlement of assets like currencies and commodities. They provide traders with crucial insights into market conditions and influence strategies across various domains. This article explores what spot rates are, how they work, and their role in trading.

Spot Rate Definition

The spot rate is the current price at which an asset, such as a currency, commodity, or security, can be bought or sold for immediate delivery. In essence, it’s what the market says something is worth right now, reflecting real-time supply and demand. Unlike future prices, which are influenced by expectations and contracts for later delivery, this type of pricing is all about the present.

Spot rates are especially crucial in highly liquid assets like forex and commodities, where prices can change rapidly based on global events. To use an example, if the rate for the euro against the dollar is 1.1050, that’s the price at which traders can exchange euros for dollars at that moment. It’s dynamic, adjusting instantly to factors like economic news, interest rate changes, and geopolitical developments.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

S&P 500 Rebounds After Monday’s Drop

The S&P 500 index (US SPX 500 mini on FXOpen) has recovered following Monday’s sharp decline, which was triggered by the success of Chinese startup DeepSeek and its AI model. As of this morning, the index is trading above the week’s early high.

This resilience suggests that the stock market has stabilised ahead of the Federal Reserve’s decision, scheduled for today at 22:00 GMT+3. Interest rates are expected to remain unchanged, but the key question is what stance Fed Chair Jerome Powell will take now that Donald Trump has officially assumed the U.S. presidency. Trump has already stated at the Davos forum that interest rates should be lowered. Powell’s press conference is set for 22:30 GMT+3.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Alibaba (BABA) Shares Surge Following AI Model Launch

Chinese e-commerce giant Alibaba has unveiled an upgraded version of its artificial intelligence model, Qwen2.5 Max. According to the company, the model:
→ Outperforms DeepSeek, the AI model that made headlines this week, in several key areas.
→ Achieves “competitive performance compared to top-tier models,” referencing OpenAI and Meta, based on benchmark tests.

The news was met with enthusiasm, driving Alibaba’s (BABA) stock price up by more than 6% in a single day, pushing BABA shares to their highest level of the year.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

[FXOpenTeam]

Market Analysis: Gold Prices Climb as Oil Takes a Hit

Gold price rallied further and traded above the $2,750 resistance. Crude oil is showing bearish signs and might decline below $72.20.

Important Takeaways for Gold and Oil Prices Analysis Today
· Gold price started a steady increase from the $2,715 zone against the US Dollar.

· It cleared a connecting bearish trend line with resistance at $2,750 on the hourly chart of gold at FXOpen.

· Crude oil prices failed to clear the $80.00 region and started a fresh decline.

· There is a key bearish trend line forming with resistance at $73.85 on the hourly chart of XTI/USD at FXOpen.

Gold Price Technical Analysis

On the hourly chart of Gold at FXOpen, the price found support near the $2,715 zone. The price remained in a bullish zone and started a strong increase above $2,730.

There was a decent move above the 50-hour simple moving average and $2,750. The bulls pushed the price above the $2,765 and $2,770 resistance levels. Finally, the price climbed as high as $2,785 before there was a pullback.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice. c