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.
USD Recovers After Huge Drop
- The US dollar plunged sharply yesterday after a set of weak economic data. GDP dropped to 2.0% while the forecast was 2.6%. The previous GDP growth was 6.7%. It marked US growth slowed more than expected in the third quarter, pressed by supply chain problems and a resurgence in Covid-19 cases. US Pending Home Sales was worse than the market estimates as well: -2.3% vs the forecast of 0.4%.
- The US broad-market index S&P 500 dropped after Amazon reported poor earnings results. Apple delivered slightly better-than-expected earnings but the revenue was worse than the forecasts. Thus, Apple and Amazon dropped in after-hours trading.
- Australian PPI came out better than the forecasts: 1.1% vs the forecast of 0.6%. AUD/USD has approached the 4month high. Will it help AUD/USD to overcome the 200-day moving average of 0.7550?
- Mark Zuckerberg claimed on Thursday that Facebook will now be called Meta. The official corporate name will be Meta Platforms. Besides, the stock will be traded under the ticker symbol MVRS starting December 1.
EUR/USD has started falling after touching the strong resistance level of the 50-day moving average and the 50% Fibonacci retracement level at 1.1700. It is getting closer to the support zone of 1.1650-1.1660 near the 38.2% Fibo level, which will be hard to cross. We may expect the pair to trade sideways near this level. However, if it manages to drop below it, the way down to 1.1610-1.1600 will be open.
Gold is moving inside the ascending channel. Gold got closer to the lower line of the channel which also lies at the 200-day moving average of $1792. The metal should struggle to cross it and reverse up back to the recent high of $1800-1810.
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.
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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.
2022 was rough: inflation, energy crisis, and plenty of other controversial situations…