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.
Microsoft buys Discord, gold rises and other news
- Microsoft is planning to buy Discord, a video-game chat community, for more than $10 billion. It signals Microsoft’s readiness to continue investing in its video-game segment. It can drive Microsoft up. Check it out at 15:30 MT, when the stock trading is available.
- All eyes on Fed’s Powell today at 16:00 MT. Yesterday he was quite optimistic. He said that the US recovery is “more quickly than generally expected and looks to be strengthening”.
- A few US Treasury auctions will be held this week, that are important to follow as movements of Treasury yields will impact the USD and gold.
- Crude oil plunged as investors worry about new pandemic restrictions and a slow vaccination pace in Europe, which may press down fuel demand.
EUR/USD has started Tuesday on a negative footing. It has broken through the support of 1.1930. Thus, the way down to the psychological mark of 1.1900 is open now. If it manages to break it, the way down to the low of March 19 at 1.1870 will be clear. Resistance levels are the 23.6% Fibonacci level of 1.1930 and the 100-period moving average of 1.1955.
Gold is moving up and up inside the ascending channel in the short term. If it manages to break the high of March 19 at $1745, the way up to the high of March 18 at $1755 will be open. The downside is limited by the intersection of the lower trend line and the 50-period moving average of $1732. Thus, gold is likely to move further up.
USD/JPY has reversed from the upper trend line on the weekly chart. And since the RSI indicator bounced off the 70.00 level and turned down as well. The pair is likely to move slowly down. If it breaks the psychological mark of 108.00, the doors will be open to the next round number of 107.00 Resistance levels are 109.00 and 109.50.
Finally, let’s discuss Microsoft. The last three candles have formed something similar to the morning star pattern, which is a bullish sign. Optimism over the news that Microsoft is buying Discord should lead Microsoft further up. If it breaks the recent high of $240.00, it may jump to the all-time high of $245.00. Just in case, support levels are at Friday’s low of $230.00 and $225.00.
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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.
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.
The Reserve Bank of Australia (RBA) will make a statement and release a Cash Rate on February 7, 05:30 GMT+2. It's among the primary tools the RBA uses to communicate with investors about monetary policy.
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.