On January 12, the Bureau of Statistics will publish the Consumer Price Index (CPI) figures, a key index for determining interest rates. While we await the release, experts forecast a decline in the CPI data, a hint at weaker Dollar values in the global markets.
What lies ahead for gold?
2023-01-20 • Updated
The US Dollar is currently trading around a pivot zone on the Daily timeframe, which supports the price. Considering the confluence of the pivot zone, demand zone, and trendline support, we can expect a bullish reaction from the current area. A bullish Dollar often implies a bearish outcome on XAUUSD.
On the weekly timeframe, XAUUSD is currently trading within the vicinity of a supply zone. We can also notice that there's been a recent break of structure downwards, as well as a supply zone. These confluences lend credence to our initial bearish outlook. However, we have to prove it by looking at the Daily timeframe.
From the Daily timeframe perspective, everything aligns perfectly too. Thus, I suggest traders await the price reaction to the supply zone. With a solid rejection at that zone, the price will reverse toward the 50-Moving Average around 1844.
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Later today Tiff Macklem, the governor of the BoC (Bank of Canada) is expected to speak at the Riksbank's International Symposium as part of a discussion panel on 'Central Bank Independence'.
The trend in the scenario above is clearly bearish. We have also had a recent break of structure at the marked horizontal arrows, which means we can expect price to react from the supply zone that broke the structure.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.