EURUSD
While the consumer price index in the Euro Area decreased by 0.4% monthly in January, it increased by 8.5% on an annual basis. While private sector employment in the USA increased by 106 thousand in January, the slowest increase in 2 years, the manufacturing PMI index fell to 47.4 due to the decreasing orders and production. The Fed did not come as a surprise, and increased interest rates by 25 basis points. While the message was given that the increases would continue by slowing the rate of increase in interest rates, Fed Chairman Powell's emphasis was on the beginning of the disinflationary process. The decision of the ECB and the statements of C. Lagarde will be effective in the volatility in the parity.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1.1191 |
| Resistance 2 | 1.1096 |
| Resistance 1 | 1.1042 |
| Support 1 | 1.0893 |
| Support 2 | 1.0798 |
| Support 3 | 1.0744 |
Daily Pivot Levels
GBPUSD
On the European side, while the eyes are turned to the interest rate decisions of the European Central Bank (ECB) and the Bank of England (BoE), both banks are expected to increase interest rates by 50 basis points. GBP/USD is priced at 1.2384 as of this morning.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1,2541 |
| Resistance 2 | 1,2467 |
| Resistance 1 | 1,2419 |
| Support 1 | 1,2297 |
| Support 2 | 1,2239 |
| Support 3 | 1,2175 |
Daily Pivot Levels
XAUUSD
An ounce of gold was cautious before the Fed and was priced below the 1950$ level, which it had been struggling to surpass in recent days. It was observed that the cautious and weak ounce gold price was waiting for the Fed. Yesterday, the Fed held its first meeting of this year. In line with the expectations, it increased the interest rate by 25 basis points. Fed Chairman Powell, on the other hand, signaled that the policy implemented since last year has worked, so the disinflationary process has begun. The market interpreted this as the Fed will not be hasty and aggressive about interest rates in the next period. Markets have been morale. While the dollar was loose, commodities were affected positively. Today, the interest rate decisions of the European-England Central Banks will be monitored.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1996 |
| Resistance 2 | 1975 |
| Resistance 1 | 1962 |
| Support 1 | 1928 |
| Support 2 | 1907 |
| Support 3 | 1894 |
Daily Pivot Levels
BRENT OIL
Oil prices are flat this morning. The expected Fed meeting took place yesterday. In line with expectations, interest rates were increased by 25 basis points. He gave morale to the markets when Fed Chairman Powell said that the fight against inflation has started to yield results. While the dollar was loose, positive pricing was seen in commodities. Yesterday, the OPEC+ advisory committee did not change its production policy. DOE weekly oil inventories rose 4.1 mn barrels. Limited negative data, but no volatility in prices. In his statement, Russian Energy Minister Novak mentioned that the sanctions against Russia did not affect them much. The interest rate decision of the European Central Bank will be on the agenda for today. For Brent oil, 85.34 - 87.68 - 89.16 supports, 81.52 - 80.04 - 77.70 resistance points can be followed.
S&P500
Although the Fed signaled a continuation of interest rate hikes, investors focused on Fed Chairman Powell's acceptance of a softening in inflation. After the Fed, stocks rose with high risk appetite, while dollar and bond yields decreased. US stock markets rose yesterday, led by the Technology, Consumer Services and Consumer Goods sectors. The S&P 500 index ended the day with 1.05% gain. It can be stated that a mixed and volatile outlook prevails in the US, European and Asian futures on the new day. Unemployment Benefit Applications data, which will be announced by the USA today, can be followed as primary data.
