EURUSD
While there was no important data flow announced yesterday on the European front, the statements of the ECB members were followed. ECB board member Mario Centeno said the current rate hike process is nearing its end. Centeno added that inflation may show some resistance in January and February, but will continue to decline in March. Fed Bank Chairman J. Powell, in his speech at a forum in Stockholm, Sweden, stated that the bank will not be a climate regulator while drawing the limits on how much the Central Bank will use its powers to promote a greener economy.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1,0815 |
| Resistance 2 | 1,0790 |
| Resistance 1 | 1,0760 |
| Support 1 | 1,0712 |
| Support 2 | 1,0690 |
| Support 3 | 1,0660 |
Daily Pivot Levels
GBPUSD
Retail sales in the UK rose 6.5% year-on-year in December, while the monthly open interest index compiled by the Recruitment and Employment Confederation and KPMG fell to 53.0 last month, the lowest level since February 2021. In the USA, on the other hand, the economic optimism index decreased by 0.6 points to 42.3, while wholesale stocks realized at the level of 1%, in line with the expectations. Fed Chairman Powell did not comment on the current monetary policy in his speech yesterday. The impact of the statements on the pair was limited. Data flow is calm in both countries today. In this context, we can spend a day where technical levels will come to the fore.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1,2300 |
| Resistance 2 | 1,2241 |
| Resistance 1 | 1,2210 |
| Support 1 | 1,2107 |
| Support 2 | 1,2000 |
| Support 3 | 1,1940 |
Daily Pivot Levels
XAUUSD
In global markets, ounce of gold remains cautious. While there is no important data to be announced in the USA for today, the US inflation tomorrow is expected closely by the markets. This morning the dollar index is trading between 103.15-103.38. Fed Chairman Powell had a speech yesterday but did not comment on the economic or monetary outlook. He just stated that in times of high inflation, it may be necessary to take measures that are not widely used, such as slowing the economy in the short term, to restore price stability. While no data-based movement is expected today, statements from possible Fed officials can be watched during the day. CPI data will be important in the USA tomorrow.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1918 |
| Resistance 2 | 1905 |
| Resistance 1 | 1891 |
| Support 1 | 1873 |
| Support 2 | 1861 |
| Support 3 | 1848 |
Daily Pivot Levels
BRENT OIL
Oil prices are trading with sellers this morning. Weekly oil inventories, announced by API, increased by 14.9 mn barrels this week. This was interpreted as negative data for oil. The Energy Information Administration of the US Department of Energy announced that it predicts oil demand in 2024 to increase by 1.72 million barrels/day compared to 2023 and reach 102.20 million barrels/day. Risk appetite in global stock markets is trying to recover this morning. For today, the weekly oil stocks to be announced by the DOE will be followed. There are no significant data streams to be announced in the US. For Brent oil, $80.38 - $81.50 - $82.56 can be viewed as resistance points.
S&P500
The S&P 500 index closed yesterday at 3,920 with an increase of 0.04%. Risk appetite in global markets is trying to recover. There were purchases in the US stock markets yesterday. This morning, the S&P500 index futures are seen slightly overbought. Fed Chairman Powell's speech was important yesterday, but he did not make any statements on the economy or monetary policy. Powell underlined that in times of high inflation, it may be necessary to take measures that are not widely used, such as slowing the economy in the short term, to restore price stability. There are no significant data streams to be announced today. CPI data will be followed in the USA tomorrow.
