Big Event for USD: Retail Sales
The US will publish the Retail Sales on January 14, Friday, at 15:30 GMT+2.
Inflation concerns led tech stocks down and gold up
Latest news
- Stocks especially tech ones dropped on Tuesday as increasing commodity prices raised concerns over inflation. Higher inflation may push up interest rates, pressing down stock valuations. Bloomberg said that a measure of inflation expectations hit the highest mark since 2006.
- The US inflation report will be out already this Wednesday. It’s widely expected to reveal a strong gain. Investors are trying to predict whether the inflation increase pushes the Fed to tighten the policy sooner than expected.
- Gold is often viewed as a hedge against inflation, that’s why it’s trading now near the three-month high. Gold showed the largest weekly increase since November on Friday after a surprisingly poor NFP.
- Oil fell as traders monitored the worsening fallout from the closure of the largest US oil-products pipeline.
Tech analysis
EUR/USD has broken through the upper trend line at 1.2130. It retraced to this line, but it should be just a natural short sell-off ahead of the further rally up. On the way up, the pair will meet resistance levels at 1.2175 – the recent high and 1.2250 – the high of February 25. However, if the sentiment changes, the pair may fall to the 100-day moving average of 1.2050 and the one-week low of 1.2000.
Gold is getting closer to the upper trend line of the descending channel, which coincides with the 200-day moving average of $1850. If it manages to break it, the way up to the highs of late January of $1875 will be open. In the opposite scenario, the move below the $1825 support will press the metal further down to $1813 – the intraday low of May 6.
GBP/USD has broken through the psychological mark of 1.4000 since political risks eased in the UK. It looks like the pair is overbought: the price went above the upper line of Bollinger Bands and the RSI indicator flattened just below the 70.00 level. On the smaller timeframes, GBP/USD has already reversed down. Therefore, it may retest 1.4000 again.
Similar
US Producer Price Index Will Impact USD
The US will reveal the Producer Price Index (PPI) on January 13, Thursday, at 15:30 GMT+2.
Will CPI Boost the US Dollar Again?
The Consumer Price Index will be out at 15:30 MT (GMT+2) on Wednesday, January 12.
Latest news
US unemployment data and the USD
The United States will publish the Initial Jobless Claims on Thursday, December 30, at 15:30 GMT+2 (MetaTrader time).
First NFP in 2022 Can Rock the Markets
The US will reveal Non-farm payrolls on January 7, Friday, at 15:30 GMT+2 (MetaTrader time).
An index that will rock USD
The United States will publish the ISM Non-Manufacturing PMI on Thursday, January 6, at 17:00 GMT+2 (MetaTrader time).
