US inflation today will hugely impact USD and gold
The main focus of traders will be on US inflation at 15:30 GMT+3. Analysts expect the huge spike of the US inflation.
Pound rallies, Treasury yields are at one-year record high
Latest news
- 10-year Treasury yields rose to the highest level in almost a year. Some investors concern about rising yields and have doubts over the reflation trade, which can push yields up to a level that can hit risk appetite.
- UBS: “We are still in a risk-on environment. Everybody is playing out the outlook for better economic growth, the outlook for more fiscal stimulus. It’s normal that nominal yields are trending higher, equities are also trading high, and also commodities based on a better economic outlook”
- The Bill & Melinda Gates Foundation Trust exited positions in Alibaba and Uber and halved the stake in Apple.
- Bitcoin dropped from record highs on Monday. According to JPMorgan: a serious risk to bitcoin could be a “sudden loss of confidence” in Tether (USDT).
-
Gold is trading at the lowest levels for this year - below $1 800.
-
Riskier currencies such as the GBP, NZD, and AUD skyrocketed to multi-year highs.
-
Oil tries to rebound from its previous week's losses.
Technical analysis
EUR/USD has approached the resistance at both the 50-day moving average and the 50.0% Fibo level at 1.2150. It will have struggles to cross it, but if it manages to do so, the way up to the 61.8% Fibonacci level at 1.2200 will be clear. Support levels are 1.2100 and 1.2030.
The pound’s rally is unstoppable. After the breakout above 1.4000, GBP/USD has taken a break. If it manages to jump above the intra-day high of 1.4050, the doors towards 1.5000 will be open. Support levels are at the recent lows of 1.4000 and 1.3950.
USD/JPY is moving inside the ascending channel. The way to the psychological mark of 106.00 is clear. If it breaks this resistance, it may rise to the next round number of 106.50. Support levels are at Friday’s low of 105.40 and 105.00.
Gold is getting closer to the key psychological mark of $1 800. It’s unlikely to cross it on the first try, but if it does, the way up to the high of February 16 at $1 825 will be clear. On the flip side, the move below the recent low of $1 775 will drive the yellow metal to the next support of $1 760.
Similar
Weekly employment data for the US: what to expect?
The United States will release the weekly Initial Jobless Claims on May 13, at 15:30 MT time
Will inflation push the greenback higher?
The United States will publish a monthly Inflation Rate and Core Inflation Rate on May 12, at 15:30 MT time.
Latest news
Friday trades: Coinbase, gold, EUR/USD
What's moving markets on Friday? Read in the fresh report!
Musk crashed Bitcoin. Time to buy dips?
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.
USD trends: insights from retailers
The USA will post Retail Sales and Core Retail Sales on May 14, at 15:30 MT time.
Deposit with your local payment systems
