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China reported higher than expected inflation figures on Wednesday. China’s CPI grew 1.5% in October while the producer price index (PPI) increased by 13.5% in October.
On the other hand, the annual inflation rate in Germany rose to 4.5% in October and on a monthly basis, the inflation increased by 0.5%. Moving ahead to the North American session, the US will release the latest inflation numbers.
EQUITIES
US stock futures trading unchanged on Wednesday as the investors waiting for the release of U.S. consumer price data due 01.30 GMT on Wednesday for further cues on the Fed's stance on inflation.
OIL
Crude oil prices extend higher following the release of API inventory data. The data showed the U.S. crude inventories decreased by 2.5 million barrels for the week ended Nov. 2.
CURRENCIES
In the currency market, the US dollar index stays above 94.00 ahead of US CPI data. While the Asian currencies like the Australian dollar and New Zealand dollar remained under pressure after China's annual inflation rate accelerated sharply in October.
GOLD
The Safe-haven metal slightly retreat from the previous session highs after the metal failed to break above the key resistance of $1833. At the time of writing, the gold price was trading below $1826. On Tuesday, the metal reached a fresh two month high of $1832.
Economic Outlook
On the data front, the Labor Department released last month PPI data. The US producer price index increased 0.6% in October of 2021, following a 0.5% rise in September.
Moving ahead today, the important events to watch:
US – Jobless claims: GMT – 13.30
US – CPI: GMT – 13.30
Coronavirus update:
Worldwide, more than 250.7 million people have been confirmed infected and more than 5 million have died. The United States has confirmed over 46.6 million cases and has had more than 750,000 deaths from COVID-19, the highest totals in the world.
Technical Outlook
EURUSD: For today, the resistance for Euro is around 1.1620. On the other side, the immediate support is at 1.1550 and any break will drag the pair to 1.1530/10 levels.
The important levels to watch for today: Support- 1.1550 and 1.1530 Resistance- 1.1600 and 1.1620.
GOLD: The yellow metal trades above $1820. Any break below the $1820 will open the doors to $1815 and $1810. On the upper side, $1835 is a crucial resistance area to watch.
The important levels to watch for today: Support- 1818 and 1815 Resistance- 1830 and 1835.
Quote of the day- “I think investment psychology is by far the more important element, followed by risk control, with the least important consideration being the question of where you buy and sell.” – Tom Basso.
Read more- https://gulfbrokers.com/en/daily-market-report-400