Our Picks

What to watch this earnings season. While Covid-19 dominated market sentiment in 2020 and 2021, earnings season outlooks are more nuanced for 2022.

The Unilever share price is volatile. And at 3,654p, worth exactly what it was five years ago. Increasing its £50 billion bid for GSK’s healthcare arm could see the FTSE 100 stalwart sink or soar.

A forex trading journal is a log of your trades that can help you refine your strategies based on learning from previous experiences. Just as a business owner tracks inventory, a trader should also keep up with their closed positions.

US reporting season: 5 things to watch this upcoming earnings season.
This reporting season is expected deliver more strong earnings growth, and cap off a year in which profits grew by 40% a share, but the future looks less certain with the rate of growth tipped to plateau into 2022.

QQQ NASDAQ 100 ETF, FED FORECAST, DOLLAR, USDJPY AND EARNINGS TALKING POINTS:
Risk appetite is still elevated at the upper end of the spectrum, but the correction for the likes of the Nasdaq 100 and S&P 500 create a backdrop of instability.
To determine where the markets are heading over the coming week, it is worthwhile to assess the dominant fundamental drive – and Fed speculation will recede this week.
Aside from US monetary policy, China’s 4Q GDP release is top scheduled event risk, US earnings seasonal will fill out and there are some other rate speculation outlets.

Airlines have come a long way since early 2020 and enjoyed some great moments in 2021 before Omicron turned the market upside down. Investors are now eager to see what lies ahead in 2022.

Netflix's Q4 2021 results should see strong subscriber growth while the group hosts a record content offering, although margins are likely to be impacted by increased cost.

Natural Gas is a highly popular commodity, particularly amongst day traders. The spread is reasonable with high liquidity, making it easy for traders to get in and out of trades with little difficulty. Nat gas also appeals to longer term traders because this macro asset has been known to trend for extended periods of time. Furthermore, natural gas is susceptible to pockets of volatility which lead to massive price spikes. The good news is these spikes tend to have a seasonal component to them which traders can use to their advantage.

US earnings season is now fully upon us, with banks and Netflix taking centre stage during the week. This steady round of corporate updates will dominate the agenda for at least the next three weeks. Aside from this, UK CPI, employment figures and retail sales provide interest for GBP watchers given the ongoing strength in GBP/USD, while Canadian CPI is one to watch given the possibility of a Bank of Canada rate hike later in the month.

Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 17th January 2022. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted on a bank holiday will usually be posted on the previous working day. 

If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.

 


NB: All dividend adjustments are forecasts and therefore speculative.
A dividend adjustment is a cash neutral adjustment on your account.

 

Special Dividends:

 

Index

Bloomberg Code

Effective Date

Summary

Dividend Amount

RTY

RVI US

19/01/2022

Special Div

3.27

Technical analysis of charts aims to identify patterns and market trends by utilising differing forms of technical chart types and other chart functions. Interpreting charts can be intimidating for novice traders, so understanding basic technical analysis is essential. This article reveals popular types of technical analysis charts used in forex trading, outlining the foundations and uses of these chart types.

GBP/USD Analysis and Talking Points:
Position Cleansing for the US Dollar.
GBP/USD Catapults to 200DMA.
Position Cleansing for the US Dollar.

This reporting season is expected deliver more strong earnings growth, and cap-off a year which profits grew by 40% a share, but the future looks less certain with the rate of growth tipped to plateau into 2022.

The Morning Star candlestick is a three-candle pattern that signals a reversal in the market and can be used when trading forex or any other market. Correctly spotting reversals is crucial when trading financial markets because it allows traders to enter at attractive levels at the very start of a possible trend reversal.

LEARN TECHNICAL ANALYSIS: MAIN TALKING POINTS:
Technical analysis is a popular field of study for FX and commodities traders as it can help to make trading decisions with an eye on risk management.
At DailyFX, our analysts and strategists share several different technical analysis methodologies and practices in their reviews of the markets, which can inform trading strategies and help to shape key decisions.
DailyFX technical analysis also includes a plethora of research and education on this topic, and this article goes over some of the more popular resources available to traders, each of which are no cost and available to all.

GBP/USD TALKING POINTS AND ANALYSIS:
UK PM Boris Johnson under pressure amid reports of more lockdown parties.
US CPI, Fed speeches and UK GDP form part of major risk events this week.
GBP/USD bull run coming under threat ahead of red hot US inflation data print.

The week opened to the momentum of Friday’s selloff for US equities with a QQQ bearish gap through support leading the way.
By Monday’s close / Tuesday’s open, US equities fully reversed course with the SPY S&P 500 ETF posting a technically-clean reversal from channel support.
For market motivation through the coming 24-48 hours, the focus intensifies on US monetary policy with hawkish Fed speakers, Powell testimony and US CPI ahead.

It feels like it was just yesterday people were worried about US Treasury rates staying at 0% forever… while it wasn’t yesterday, it was as recent as summer of last year that short-term interest rates were as close as they’ve ever been to negative.*

Now, the likelihood of multiple hikes to the Federal Funds Rate by the end of this year has people wondering just how big the chain reaction across the Treasury yield curve can be.

The psychology of trading is often overlooked but forms a crucial part of a professional trader’s skillset. DailyFX is the perfect place to learn how to manage your emotions and hone your trading psychology; our analysts have already experienced the ups and downs, so you don’t have to.

Rising yields should help boost bank profitability, although JPMorgan’s stock price has struggled lately.

Source: Bloomberg

FUNDAMENTAL FORECAST FOR THE US DOLLAR: NEUTRAL
While the DXY Index added +0.07%, most of its gains were given back by the end of the week following the middling December US jobs report.
Not only are there several ‘high’ ranked data releases due in the coming days, there are testimonies and speeches by several Federal Reserve policymakers that seem destined to introduce more volatility to financial markets.
According to the IG Client Sentiment Index, the US Dollar has a mixed bias heading into mid-January.

UK BRITISH POUND TECHNICAL OUTLOOK: BULLISH
GBP/USD bulls aim to break above the key psychological level of 1.36 despite a hawkish Fed.
EUR/GBP falls to critical support at the lower bound of the descending triangle formation.
GBP/JPY eager to break above October highs in an effort to claim 160.

Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. To put simply, margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool.

US earnings season begins this week, with banks JPMorgan and Citigroup heading up the quarterly parade of earnings updates from the US. This helps to alleviate a slightly dull week on the economic front, although CPI from the world’s two largest economies will be closely-watched given the Fed’s hawkish turn last week in the minutes of its December meeting.

Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 7th January 2022. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted on a bank holiday will usually be posted on the previous working day. 

If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.