EURUSD
Euro Zone growth data was revised downwards and did not grow by 0.0% on a quarterly basis, but grew by 1.8% on an annual basis. On the other hand, different opinions continue to come from the officials of the European Central Bank. ADP private sector employment in the USA increased by 242 thousand, above the estimates. The data showed that the labor market remained tight despite the Fed's aggressive tightening policy to curb inflation. However, the number of job vacancies exceeded expectations in January. In his speech at the US House of Representatives Committee, Fed Chairman J. Powell softened his rhetoric by stating that the Fed has not yet made a decision on the rate of increase in interest rates.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1.0619 |
| Resistance 2 | 1.0596 |
| Resistance 1 | 1.0569 |
| Support 1 | 1.0519 |
| Support 2 | 1.0497 |
| Support 3 | 1.0470 |
GBPUSD
Speaking at the Resolution Foundation, a think tank headquartered in London, Bank of England (BoE) Monetary Policy Committee (PPK) Member Swati Dhingra stated that the monetary policy rate, which has been on the rise in the country in recent months, should now be kept constant, and that a possible interest rate increase will harm the country's economy. He said he could. Noting that there are few signs that the increase in inflation is reflected in the incomes of employees, Dhingra said, "After a year and a half that was above the inflation target, an (interest) increase by increasing financing costs could create an unprecedented shock in trade."
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1.1922 |
| Resistance 2 | 1.1890 |
| Resistance 1 | 1.1865 |
| Support 1 | 1.1809 |
| Support 2 | 1.1777 |
| Support 3 | 1.1753 |
XAUUSD
Weak movements continue for gold. This week, Fed Chairman Powell's hawkish statements pushed the dollar higher and led to a downtrend in commodities. The Fed's statement that it will continue to increase interest rates for a while to reduce inflation, worries the markets. It causes a weak appetite for risk. Next week, Fed members will not have speeches because time is running out towards March 21-22. It could be Powell's last speech this week before the Fed meeting. As it gave the necessary signals, the 50 basis point probabilities of the March meeting started to get stronger. Until the meeting, these expectations can be felt in the prices.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1837 |
| Resistance 2 | 1830 |
| Resistance 1 | 1822 |
| Support 1 | 1807 |
| Support 2 | 1800 |
| Support 3 | 1792 |
BRENT OIL
There are flat movements in oil prices this morning. Lowering expectations for China this week and Fed Chairman Powell's hawkish messages also had an impact on oil prices. According to data released by the US energy information administration, oil inventories fell by 1.7 mn barrels last week. API stocks also fell by 3.8 mn barrels last week. The decrease in stocks is interpreted as positive data for oil. However, this week's data seems to have limited impact on prices. Barclays lowered its target prices for oil in its report. Recession expectations or the expectation that China will not open more than expected cause this.
S&P500
US indices showed a mixed outlook after Fed Chairman Powell's attempts to soften his hawkish statements the previous day and strong job vacancies data announced. While increases were prominent in the Technology, Utilities and Raw Materials sectors, decreases were observed in the Energy, Health and Telecommunication sectors. The Dow Jones index fell 0.18%, while the S&P 500 index rose 0.14% and the NASDAQ index rose 0.40%. It can be said that there is a horizontal-negative outlook in US futures on the new day. When we look at it in terms of data today, applications for benefiting from unemployment benefits in the USA can be followed as primary data.
