Daily Market Analysis By FXOpen

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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.

 

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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.

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.

 

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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.

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.

 

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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.

 

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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.

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.

 

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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.

 

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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.

 

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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.

 

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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.

 

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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?

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.