EURUSD
Eurozone consumer expectations rose again in December, showing that recent interest rate hikes and falling energy prices have yet to alleviate price rise fears, according to a survey released by the ECB. Industrial production in Germany fell by 3.1% in December, more than expected. The foreign trade deficit in the USA increased by 12.2% compared to the previous year to $ 948.1 billion last year, repeating the record set in 2021. Fed Chairman Powell stated that after January employment data came out stronger than expectations, additional interest rate hikes would be needed to cool down inflation.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1,0870 |
| Resistance 2 | 1,0881 |
| Resistance 1 | 1,0772 |
| Support 1 | 1,0675 |
| Support 2 | 1,0623 |
| Support 3 | 1,0578 |
Daily Pivot Levels
GBPUSD
An economic think tank has estimated that the UK is likely to avoid a recession this year. The National Institute for Economic and Social Research (NIESR) said the economy will grow marginally even as higher prices hit household budgets. But he warned the UK would feel like a recession for at least seven million households, even if it didn't go into a recession. NIESR has predicted that the economy will grow by 0.2% this year, with growth to reach 1% in 2024. The forecast paints a more optimistic picture than others, such as the Bank of England.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1.2242 |
| Resistance 2 | 1.2168 |
| Resistance 1 | 1.2108 |
| Support 1 | 1.1974 |
| Support 2 | 1.1900 |
| Support 3 | 1.1840 |
Daily Pivot Levels
XAUUSD
An ounce of gold is struggling to recover. After pulling back on Friday's US jobs data and finding support at $1860, an ounce of gold is trading around $1875 this morning. It is seen that reactions are coming from the $1860 region this week. The dollar index is hovering around the 103.35 region. Fed Chairman Powell's speech was watched yesterday. Powell stated that the disinflationary process has begun and that interest rate increases will continue for a while. In fact, it did not cause a new volatility, as there were expressions that the markets knew. There were purchases in the US stock markets last night. US futures are flat this morning. Secondary level data will be released in the USA today. Its effect may be limited.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1901 |
| Resistance 2 | 1893 |
| Resistance 1 | 1882 |
| Support 1 | 1862 |
| Support 2 | 1854 |
| Support 3 | 1843 |
Daily Pivot Levels
BRENT OIL
Oil prices maintain their yesterday's rise this morning. The expectation of an increase in demand in China is pushing prices upwards. Fed Chairman Powell also had a speech yesterday. He stated that the disinflationary process has started, but that interest rate increases will be made for a while. It wasn't a surprise announcement, so it didn't cause any new volatility. However, the US stock markets finished the day with a rise yesterday as it gave morale to the markets. The optimism in oil prices is preserved. Weekly oil inventories, announced by API, fell by 2.2 million barrels. There was an increase of 6.3 mn barrels in the previous week. Positive data for oil in the decline in stocks. Weekly stocks will be released by the DOE today.
S&P500
Expressing that the strong employment report shows why they think that the disinflation process will be a time-consuming process, Powell said that if the data continues to be stronger than expected, they may need to increase interest rates further. Analysts pointed out that Powell's statements were not as hawkish as they were worried, saying that this supported relatively risky assets. The S&P 500 closed the session up 1.29% at 4.164. As of this morning, the outlook for the S&P 500 futures contract is at 4.163.
