The main focus of traders will be on US inflation at 15:30 GMT+3. Analysts expect the huge spike of the US inflation.
Facebook news and optimistic US sales
- Facebook blocked users in Australia from finding or sharing news. That was a move in response to the Australian laws which forced Facebook to pay for news content. Even charities and health departments are blocked, but the social network claimed that it would unblock non-media accounts soon.
- Bitcoin held above the all-time high of $52 000 the whole Wednesday, but today it slightly dropped.
- US retail sales came out much better than was expected. As a result, the US dollar surged. Treasury yields keep rising as investors are still betting on the US economic rebound due to the vaccine rollout. The rise in the yields pressed the gold down to November’s lows.
- US stocks modestly dipped but we can’t claim that the risk-off sentiment came back as commodity prices such as crude oil are still climbing up. In fact, crude oil keeps rising in the US as the deep freeze stopped the oil production and increased the demand for power energy.
EUR/USD has been moving in an ascending channel since mid-summer. Since it has approached the lower trendline at 1.2030, we can expect the pair to bounce off rather than break out. If it manages to break above the resistance of 1.2100, the way up to the 50-day moving average of 1.2150 will be open.
GBP/USD has broken the psychological mark of 1.3900 and the heading to the high of February 16 at 1.3950. Support levels are at the 50-period MA of 1.3840 and the low of February 12 at 1.3780.
USD/JPY has been moving up but the 50-weekly moving average has stopped its rally. If it manages to break above the key psychological mark of 106.00 again, the way up to the next round number of 106.50 will be open. Support levels are at the 200-day MA of 105.60 and 105.00.
EUR/GBP has been trading in a descending channel since December. It has just broken the supprt of 0.8680. Now it's edging lower to 0.8650, whcih it's unlikely to cross on the first try. Resistance levels are 0.8700 and 0.8725.
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.