The main focus of traders will be on US inflation at 15:30 GMT+3. Analysts expect the huge spike of the US inflation.
Bearish market on Thursday
- Fed has held the first meeting this year, where it leaves both rates and QE pace unchanged. The bank takes a wait and see approach, while the debt is mounting. Analysts believe that no changes from Fed may be understood as an indirect light-tapering scenario. Higher real rates could be unveiled already in the next quarters.
- Elsewhere, Fed’s Powell said that the US economy was still far away from full recovery during his press conference.
- Nasdaq plunged as the earnings of Tesla came out worse than the estimates. Apple and Facebook published better-than-expected results, but still, it wasn't enough to satisfy investors. Facebook warned of “significant uncertainty” in 2021.
- The EU has failed to resolve its problem with vaccine delays. Germany lowered its 2021 economic growth projections. The UK involved stricter restrictions to contain the virus spread.
EUR/USD is falling towards 1.2050 as was predicted by TD Securities. It has just crossed the support of 1.2100, therefore there are no obstacles for the price to dip further. The pair is unlikely to break through 1.2050 on the first try, so we should expect the pullback initially. If it finally manages to break this support, the way down to the key psychological mark of 1.2000 will be clear. Resistance levels are 1.2130 and 1.2170.
GBP/USD has approached the support of 1.3650, which it has failed to cross several times this month. Therefore, we would expect the pair will pull back to the upside rather than break out it. However, if bears are strong enough to press the price below 1.3650, the doors towards the key psychological mark of 1.3600 will be open.
AUD/USD has finally escaped the symmetrical triangle it has been trading inside since December. If bears are strong enough, they may break the support of 0.7600 and drag the price to the low of December 28 at 0.7570. Resistance levels are at the 200-period MA of 0.7665 and yesterday’s high of 0.7750.
USD/CAD has just broken through the resistance of 1.2830, clearing the way up to the psychological level of 1.2900. The move above it will drive the price further up to 1.2950, the high of December 21. Support levels are 1.2775 and 1.2700.
The United States will release the weekly Initial Jobless Claims on May 13, at 15:30 MT time
The United States will publish a monthly Inflation Rate and Core Inflation Rate on May 12, at 15:30 MT time.
What's moving markets on Friday? Read in the fresh report!
Elon Musk, Tesla’s founder and CEO, said the company wouldn’t accept Bitcoin as payment any longer. As a result, BTC/USD dropped to $45,300, the low unseen since March.
The USA will post Retail Sales and Core Retail Sales on May 14, at 15:30 MT time.