Progress in US Debt Talks, Gold Is Down
Some progress in US debt ceiling talks is made, and the PMI data is out.
What will move the market on January 31-February 4?
The volatility that the markets experienced last week promises the second tidal wave! What should your favorite assets anticipate during the first week of February?
Forex
The US dollar strengthened to the highs of June 2020. The greenback was pushed by the Federal Reserve that announced its plans to fight surging inflation. To do that, the regulator aims to start raising interest rates sooner and provide faster tapering. EUR/USD broke the 1.12 level on the news and slid closer to 1.11. The pair awaits the meeting by the European Central Bank (ECB) and nonfarm payrolls. If the USD keeps getting stronger, the next support will lie at 1.1050. On the upside, there is a resistance of 1.1220. The cable will be affected by the news as well, as the Bank of England holds a meeting this Thursday. Its hawkish comments will push GBP/USD to 1.3570. Otherwise, follow the support of 1.3300.
Stocks
Last week, we saw interesting movements on the stock charts of Tesla and Intel. Stocks of both companies were pressed by the comments on delivery problems in their earnings releases. However, the release of Apple at the end of the week brightened up the mood of bulls. This week, we await the quarterly data of General Motors, Alphabet, Alibaba, eBay, Facebook, Amazon, and Ford Motor. Follow the releases in the economic calendar, and don't forget the main rule for trading on earnings reports: if the actual data is better than the forecasts, the stock will go up.
Oil & gold
The oil prices were trading at their highs of 2014 at the end of the last week. Both Brent and WTI moved closer to $90 amid the US-Russia tension and the fear concerning the spread of omicron. If you trade oil, follow the OPEC+ meeting, where the oil-producing countries will consider the need in its previously agreed plan to boost production. If they agree to cut it, Brent will fall to $84.40, and WTI will move lower to its closest support of $81.50. As for gold, it remains under pressure, with the key support at $1770.
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