Market Overview - Page 123

The Bank of England and the ECB will announce their monetary policy decisions today. They could reinforce the contrast in policy between these central banks and trigger a significant reassessment in the FX market. The ECB is expected to confirm.

According to the latest ADP data, employment in the USA fell by 301K in January. This is sharply weaker than the expected gain of 185K after a rise of 776K in December. The shocking dip is caused by both the.

At the end of last month, the dollar index renewed 1.5-year highs after confirmation of the Fed’s plans to tighten monetary policy quickly. Since then, the US currency has given up some ground, but for now, there are visible chances.

In Europe, inflation accelerates, contrary to forecasts that the peak has passed. First estimates just released noted an acceleration in CPI from 5.0% to 5.1% y/y against average estimates of a slowdown to 4.4%. An inflation rate creeping above 5%.

The US manufacturing ISM, an essential indicator for America’s business cycle, recorded a significant slowdown in January but managed to beat expectations. It had declined from 58.7 to 57.6 against expectations of 57.4. The manufacturing ISM has slipped in the.

• AUDUSD reversed from support zone • Likely to rise to resistance level 0.7150 AUDUSD currency pair recently reversed up with the daily Bullish Engulfing the support zone lying between the round support level 0.7000 (previous monthly low from the start.

Gold is attempting to return to the $1800 area on Tuesday. The bulls do not want the price fixing below this round level, as they want to avoid the markets starting a wider liquidation of long positions in the metal..

• Gold reversed from support zone • Likely to rise to resistance level 1810.00 Gold recently reversed up from the support zone lying between the key support level 1780.00 (which reversed the pair at the start of January) and the.

Today we have seen the first slowdown in annual inflation in seven months, but the data is better than expected. In January, consumer prices rose 0.4%, up 4.9% on the same month a year earlier. Analysts, on average, were expecting.

Oil has added more than 14% this month, and Brent spot contracts are trading near $90 a barrel. Steady strengthening has been underway for the past two months after it became clear that the widespread Omicron strain is not leading.

Gold is trading near $1840, adding 3.2% from the Jan 7 lows, as a hedge against increased financial market volatility. By comparison, the S&P500 has experienced its worst start to a year in history, losing more than 12% in that.

The ruble remains under pressure on Monday after four weeks of decline. The USDRUB is above 77.7 and approaching the area of last year’s highs. Technically, the situation looks like a moment of truth for the ruble. An easing of.