The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
Gold and Stocks Keep Rallying
- US broad-market indexes such as S&P 500 and Nasdaq are still near all-time highs, supported by robust corporate earnings. Microsoft, Google, Coca-Cola, and McDonald’s have beat analysts’ estimates this week. Today, we expect earnings from Apple, Amazon, and MasterCard. Look at these amazing movements!
- The Bank of Japan left the policy unchanged. The bank also cut its economic growth forecast because of the weak consumption and supply disruptions caused by the COVID-19 pandemic.
- Crude Oil Inventories disappointed oil bulls with the hike in oil inventories. XBR/USD (Brent oil) and XTI/USD (WTI oil) dropped.
- Traders are awaiting the European Central Bank policy meeting today at 14:45 GMT+3. Besides, the US GDP will be out at 15:30 GMT+3.
Gold keeps moving inside the ascending channel. It has surged above the psychological mark of $1800 and edged higher to the high of October 25 at $1810. If it manages to jump above this resistance level, the metal will rocket to the next round number of $1820. Support levels are the 200-day moving average of $1792 (which also lies at the lower line of the channel) and the 50-day moving average of $1780.
AUD/USD has surged above 0.7500. It will struggle to break the resistance level of 0.7550 at the 200-day moving average, but if it manages to break it, the way up to the four-month high of 0.7600 will be open. Support levels are 0.7500 and the low of October 22 at 0.7460.
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.