EURUSD
Philip Lane, Chief Economist of the European Central Bank, said that for inflation to fall to the target, interest rates should go into the restrictive area. In Germany, Europe's largest economy, the ZEW economic expectation index rose to 16.9 in January, the highest level of the last year. Inflation in the country decreased from 10% to 8.6% in December. Confidence index, which is in the negative zone in Europe, recovered with the softening in inflation and the decrease in energy prices. The manufacturing index, announced by the Fed's New York Branch, remained in the negative zone, falling to 32.9 in January, the lowest level recorded since May 2020.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1.0941 |
| Resistance 2 | 1.0905 |
| Resistance 1 | 1.0846 |
| Support 1 | 1.0751 |
| Support 2 | 1.0715 |
| Support 3 | 1.0656 |
Daily Pivot Levels
GBPUSD
The British economy grew 0.1 percent in November. However, expectations were opposite and economists had expected the economy to shrink by 0.2 percent in November. The driver of the growth came from the service sector with an increase of 0.2 percent. “Unprecedented energy prices, new trade barriers with the European Union and the lingering effects of Covid shutdowns have created some of the most challenging conditions in recent history for small businesses,” the Association of British Chambers of Commerce (BCC) said. The GBP/USD pair is priced at 1.2287 as of this morning.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1.2466 |
| Resistance 2 | 1.2383 |
| Resistance 1 | 1.2335 |
| Support 1 | 1.2204 |
| Support 2 | 1.2121 |
| Support 3 | 1.2073 |
Daily Pivot Levels
XAUUSD
Despite its movement towards the $1929 resistance this week, the ounce gold could not exceed this point and left its place to sales. The momentum loss continues. It is noteworthy that this morning, albeit limited, it started to decline below the $1900 level. The dollar index is trading in the range of 102.35-102.89 this morning. There is data to be released in the US today and data-based movement can be expected, albeit limited. In the evening, the Fed is also expected to release its beige book report. During the day, Davos Summit is followed and the statements from there are followed. Fed officials continue their speech this week and state that they will continue to increase interest rates until a convincing picture is seen in inflation.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1932 |
| Resistance 2 | 1925 |
| Resistance 1 | 1917 |
| Support 2 | 1901 |
| Support 3 | 1895 |
| Support 1 | 1886 |
Daily Pivot Levels
BRENT OIL
Oil prices are flat this morning. Yesterday, OPEC released its monthly oil market report. It was stated that global oil demand is expected to increase by 2 million 220 thousand barrels per day compared to last year and reach approximately 101 million 770 thousand barrels. In this period, it was observed that the crude oil production in OPEC increased the most in Nigeria, while Kuwait was the country where the crude oil production decreased the most. The International Energy Agency's monthly outlook report is expected to be announced today. In his statement, the OPEC Secretary General stated that OPEC is cautious and optimistic about the global economy. For today, possible explanations about oil can be followed at the Davos Summit.
S&P500
US stock markets were mixed yesterday. While increases were prominent in the consumption, technology and energy sectors, decreases were observed in the raw material sector. The S&P 500 index ended the day down 0.20%. It can be said that the below-expected balance sheet from Goldman Sachs was effective in the mixed outlook in the US markets. In the new day, it can be said that a horizontal-positive outlook prevails in US futures. Looking at the economic calendar, PPI and retail sales on the US side can be followed in terms of the course of the markets.
