2022-12-15 • Updated
Last week was intense!
The US dollar gained more than 2% against other currencies on investors' concerns regarding one more inflation wave in the United States caused by the fuel crisis. As a result, EURUSD plunged to 1.06 support, and USDJPY increased to 134. The stock market lost over 2% on Thursday as investors decided to quit risk assets ahead of the upcoming FOMC meeting on June 15. Chinese Hang Seng decreased at the end of the week as Shanghai closed seven districts for weekends for Covid testing. The oil market keeps gaining momentum due to the Russian oil embargo. As a result, XBRUSD increased above $122 and continues its journey towards $130.
The Bureau of Labor Statistics will publish the US PPI and Retail Sales numbers on Tuesday and Wednesday, respectively. Moreover, on Wednesday, the FOMC will host a meeting to discuss the future monetary policy and increase the key rate. According to analysts’ expectations, the Federal Reserve might increase the key rate by 75 basis points, due to another wave of inflation growth. In this case, EURUSD might decline to 1.0350. Otherwise, it will bounce to the 1.0550 resistance level.
An extremely high inflation rate already reduced real income by 20% in Great Britain, causing unrest among the population. On Thursday, the Bank of England will publish its monetary policy summary. If BOE doesn’t make any hawkish statements, GBPUSD might plunge to 1.2200 support and even decline to 1.2050 in case of a breakout.
The US stock indices had a rough close of the previous week due to the US dollar’s growth. However, both US500 and US100 keep trading above the critical key levels of 3800 and 11 700, respectively. Traders might consider opening long trades as long as the price stays above these levels.
Chinese Hang Seng reversed from the 100-day moving average after a 4-day rally due to the COVID-19 cases growth in Beijing. The price might return to 19 000 within a couple of weeks.
XBRUSD has been breaking one resistance level after another. Currently, the price has only one barrier of $124.50 before reaching $130. At the same time, XTIUSD is moving towards $124. There are a few doubts oil will hit targets as it looks like even OPEC+ doesn’t have enough power to resolve the energy crisis.
XAUUSD surprised everyone on Friday reaching the $1880 level. However, it declined at the beginning of the week. The breakout of the $1850 support level will send the yellow metal at $1830.
During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...
Canadian retail sales showed a slight rebound in February, rising by 0.1% after a 0.3% drop in January. However, this failed to fully offset the steeper decline earlier in the year, suggesting a weakening momentum in consumer spending. The increase in February was driven by gains in sectors such as sporting goods, hobby retailers, and building materials. Despite the...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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