The higher-than-expected inflation data for January has reignited concerns about rising prices and its implications for Federal Reserve policy. While investors had anticipated rate cuts in the near term, the hot inflation print may delay such actions. As the Fed navigates the delicate balance between containing inflation and...
What to Trade on June 13-17?
2022-12-15 • Updated
Last week was intense!
The US dollar gained more than 2% against other currencies on investors' concerns regarding one more inflation wave in the United States caused by the fuel crisis. As a result, EURUSD plunged to 1.06 support, and USDJPY increased to 134. The stock market lost over 2% on Thursday as investors decided to quit risk assets ahead of the upcoming FOMC meeting on June 15. Chinese Hang Seng decreased at the end of the week as Shanghai closed seven districts for weekends for Covid testing. The oil market keeps gaining momentum due to the Russian oil embargo. As a result, XBRUSD increased above $122 and continues its journey towards $130.
The Bureau of Labor Statistics will publish the US PPI and Retail Sales numbers on Tuesday and Wednesday, respectively. Moreover, on Wednesday, the FOMC will host a meeting to discuss the future monetary policy and increase the key rate. According to analysts’ expectations, the Federal Reserve might increase the key rate by 75 basis points, due to another wave of inflation growth. In this case, EURUSD might decline to 1.0350. Otherwise, it will bounce to the 1.0550 resistance level.
An extremely high inflation rate already reduced real income by 20% in Great Britain, causing unrest among the population. On Thursday, the Bank of England will publish its monetary policy summary. If BOE doesn’t make any hawkish statements, GBPUSD might plunge to 1.2200 support and even decline to 1.2050 in case of a breakout.
The US stock indices had a rough close of the previous week due to the US dollar’s growth. However, both US500 and US100 keep trading above the critical key levels of 3800 and 11 700, respectively. Traders might consider opening long trades as long as the price stays above these levels.
Chinese Hang Seng reversed from the 100-day moving average after a 4-day rally due to the COVID-19 cases growth in Beijing. The price might return to 19 000 within a couple of weeks.
Oil, gas & metal
XBRUSD has been breaking one resistance level after another. Currently, the price has only one barrier of $124.50 before reaching $130. At the same time, XTIUSD is moving towards $124. There are a few doubts oil will hit targets as it looks like even OPEC+ doesn’t have enough power to resolve the energy crisis.
XAUUSD surprised everyone on Friday reaching the $1880 level. However, it declined at the beginning of the week. The breakout of the $1850 support level will send the yellow metal at $1830.
Today, Tuesday, February 13th, at 8:30 am New York time, the Bureau of Labor Statistics (BLS) releases US inflation data related to the Consumer Price Index (CPI). This data, considered high-impact, could generate significant changes in the perception of...
The US Dollar Index (DXY) has been in a consolidation phase since early February, displaying minor signs of weakening last week. Despite this, the USD continues to find support around the 104.00 mark on dips, indicating a general resilience. Analysis suggests that the USD may currently be overvalued in the short term when considering various factors
Last Tuesday, the Australian dollar experienced its steepest drop of the year, falling by 1.18%, following higher-than-expected US inflation figures, which boosted the US dollar. However, the Aussie has since rebounded and is now trading at a two-week high against the US dollar. Investors are...
Commerzbank's analysis suggests a brighter outlook for the New Zealand Dollar (NZD) in the coming months despite recent downward pressure. Factors like broader U.S. Dollar strength and domestic issues have kept the NZD below last year's highs. However, robust labor markets in both New Zealand and Australia and an expected...
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