EURUSD
While consumer prices in the Euro Zone declined by 0.3% on a monthly basis in December, they recorded a negative course and increased by 9.2% on an annual basis, below the expectations. With the latest data, the Eurozone ended 2022 with single-digit inflation. Data in the US pointed to strong demand for labor in line with leading indicators. The increase in average hourly earnings, which is critical for inflation indicators, was below expectations. Some of the local Fed officials argued that the Fed should make smaller rate hikes, while others said the nonfarm payrolls data did not change the outlook for the economy.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1,0796 |
| Resistance 2 | 1,0735 |
| Resistance 1 | 1,0700 |
| Support 1 | 1,0638 |
| Support 2 | 1,0605 |
| Support 3 | 1,0572 |
Daily Pivot Levels
GBPUSD
Construction PMI in the UK fell to 48.8 in December, below expectations, while house prices fell by 1.5% in December. While non-farm employment in the USA exceeded expectations with an increase of 223 thousand in December, the unemployment rate decreased to 3.5%. Average hourly earnings, on the other hand, increased by 0.3% monthly and 4.6% annually, below expectations. The ISM services PMI fell below the 50 threshold at 49.6, the lowest level since May 2020. Factory orders decreased by 1.8% in November, more than expected. After the data flows, the dollar index closed the week with a decline, while upward trends were seen in the parity. There is no significant data flow today.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1,2300 |
| Resistance 2 | 1,2241 |
| Resistance 1 | 1,2160 |
| Support 1 | 1,2107 |
| Support 2 | 1,2000 |
| Support 3 | 1,1940 |
Daily Pivot Levels
XAUUSD
In global markets, the rise in gold continues. The dollar index is trading between 103.55 and 103.93 this morning. Expectations that central banks will not take as aggressive steps on interest rates as in 2022 continue to support this move of ounce gold. Nonfarm payrolls data followed on Friday in the US and the data beat expectations. There are no significant data streams to be announced for today. For the rest of the week, eyes will be on the US CPI data. US inflation will be announced on Thursday, January 12. Fed Chairman Powell's speech will be followed tomorrow. Data-based action may not be expected today.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1919 |
| Resistance 2 | 1904 |
| Resistance 1 | 1884 |
| Support 1 | 1863 |
| Support 2 | 1848 |
| Support 3 | 1834 |
Daily Pivot Levels
BRENT OIL
Oil prices started the new week with buyers. The opening of China continues to affect the markets positively. However, the increase in the number of cases from time to time can disturb the markets. This weakens the risk appetite in the stock markets. Developments in China this week can be watched closely. Major central banks are going to tighten their monetary policies, but they say they will do it in smaller steps for this year. Therefore, the fact that central banks will not take more aggressive steps gives the markets a breath of fresh air. There are no significant data streams to be announced for today. This morning, the risk appetite in the stock markets remains positive.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 84,51 |
| Resistance 2 | 82,62 |
| Resistance 1 | 80,88 |
| Support 1 | 78,00 |
| Support 2 | 76,50 |
| Support 3 | 74,77 |
Daily Pivot Levels
S&P500
The S&P 500 index closed Friday at 3,895, up 2.30%. On the last trading day of the week, purchases strengthened in the US stock markets. Nonfarm payrolls data released on Friday came in better than expected. However, average hourly earnings data and ISM services PMI data were below expectations, giving morale a boost to the markets. Data supported that the Fed would not be more aggressive on interest rates. When the expectation that the Fed could stay calmer in the coming period strengthened, the markets supported the purchases. There are no significant data streams to be announced for today. Data-based action may not be expected. U.S. futures are lightly bought this morning.
