EURUSD
ECB chief economist Philip Lane said that the ECB's reduction of the large amount of government bonds it holds may have a moderate effect on growth and inflation. The producer price index in the USA increased by 0.7% on a monthly basis in January and by 6% on an annual basis, exceeding the expectations. While the data started to rise again after the decline in December, the statements from the Fed officials that a 50 basis point interest rate increase could be followed were followed. While pricing continues above the 104.00 level in the dollar index, a pullback is recorded in the parity.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1.0779 |
| Resistance 2 | 1.0751 |
| Resistance 1 | 1.0711 |
| Support 1 | 1.0620 |
| Support 2 | 1,0603 |
| Support 3 | 1.0576 |
Daily Pivot Levels
GBPUSD
In the statement made by the British Office of National Statistics (ONS), it was reported that the Consumer Price Index (CPI) in the country decreased by 0.6 percent in January compared to the previous month and increased by 10.1 percent on an annual basis. The market expectation was that the CPI would increase by 10.3 percent on an annual basis in January. In the statement, it was reported that the increase in inflation in the country was mostly a reflection of the rise in energy and food prices, and food prices increased by 16.7 percent on an annual basis in January.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1,2160 |
| Resistance 2 | 1,2117 |
| Resistance 1 | 1,2052 |
| Support 1 | 1,1943 |
| Support 2 | 1,1899 |
| Support 3 | 1,1834 |
Daily Pivot Levels
XAUUSD
The producer price index announced in the US for January exceeded expectations. It was 0.7 percent on a monthly basis and 6.0 percent on an annual basis. In the statements of the Fed officials during the week, the possibility of 50 basis points is still on the table. These expectations, the fact that the PPI came in above expectations, caused the dollar to start to strengthen, albeit to a limited extent. The dollar index is trading between 104.14-104.44 this morning. Commodities are under pressure due to the upward movement of the dollar and an ounce of gold is weak this morning. The speeches of Fed officials and secondary level data from the USA can be followed today. US futures are slightly selling this morning.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1862 |
| Resistance 2 | 1854 |
| Resistance 1 | 1845 |
| Support 1 | 1827 |
| Support 2 | 1818 |
| Support 3 | 1809 |
Daily Pivot Levels
BRENT OIL
Oil prices started the new day with light sales. The increase in DOE and API weekly oil inventories announced this week was seen as a limited negative. However, it did not have a serious effect on pricing. The statements of Fed officials continue to come. The market is now convinced that they will continue to increase interest rates for a while. In this week's statements, with the explanations that 50 basis points are on the table, the rise of the dollar, albeit limited, is suppressing commodities. False statements can be interpreted as limited negative for oil. Libya, a member of OPEC, produces over 1 million barrels of oil per day. They stated that they have started work to increase this to 2 mn barrels.
S&P500
Inflation, which slowed down less than expected in the first month of this year, strengthened the expectations that the US Federal Reserve (Fed) will continue to raise interest rates to reduce inflation to its 2 percent target. Economists, who stated that inflation may follow a stronger course than expected in the first half of the year, said that a significant slowdown could be recorded in the second half. The S&P 500 closed the session up 0.28% at 4.147. As of this morning, the outlook for the S&P 500 futures contract is at 4.162.
