Traders brace for a key week as new economic figures and earnings data set the stage for market moves. With the Fed pausing rate hikes, focus shifts to labor stats and corporate reports to assess economic health. Watch for shifts in stocks, forex, and commodities from PMI, employment numbers, AI volatility, and central bank signals.
US-China AI Race: Who Will Prevail?
Tech stocks fell amid fears that China's DeepSeek AI model could challenge U.S. AI leadership. Concerns over inflated AI valuations triggered sell-offs in chipmakers like Nvidia (-17.6%) and major tech firms, exposing risks tied to the "Magnificent Seven." Investors now question whether hefty AI investments will pay off amid fierce competition and looming regulatory challenges. 
Apple is projected to report a 4% YoY revenue increase and EPS of $2.35 in its upcoming earnings release. Solid growth in services and AI innovation underpins investor confidence, despite ongoing challenges in the Chinese market. With the stock trading around $239.36, resistance stands at $259.02 and support at $220. While the long-term outlook remains optimistic, near-term volatility may present appealing trading scenarios.
Gold (XAU/USD) – Safe-Haven Appeal Endures
Gold is currently trading at $2,758 per ounce, up 5.9% year-to-date, buoyed by geopolitical tensions and central bank acquisitions. The Federal Reserve’s interest rate stance plays a crucial role in shaping demand. With resistance near $2,785 (its ATH) and support at $2,730, market participants are closely watching global uncertainty as a key price driver. Gold continues to be a favored asset during periods of volatility.
EUR/USD – Divergent Central Bank Policies in Focus
The pair is trading at 1.0400 amid a tug-of-war between central banks, with the ECB poised to cut rates and the Fed holding steady. Technical levels to watch include support at 1.0350 and resistance at 1.0480. The short-term sentiment is bearish, though any unexpected ECB moves could change the trend.
In conclusion, the coming week is set to deliver significant shifts as fresh economic data, evolving tech rivalries, and differing central bank policies drive change. Keep abreast of these developments to stay on top of your trades!
