Global markets mixed on Wednesday as traders await December US inflation data that is set to be announced later in the day, which could trigger volatility in the market. Inflation is expected to have risen by 5.4% in December, its highest in decades, and up from 4.9% in the previous month.
US stock futures trade flat as investors remained cautious ahead of the highly anticipated US inflation data. During the previous session, Wall Street ended higher boosted by the oil prices rally and mixed comments from Fed Chair Powell.
Crude oil futures extend gains on Wednesday despite the release of weaker-than-expected API inventory data. The data showed the US crude inventories fell by 1.077 million barrels in the week ended January 7th.
In the currency market, the US dollar index, which measures the greenback’s value against a basket of six major currencies hits the fresh weekly low of 95.55 on Wednesday. At the time of writing, the greenback slightly recovered from the early session lows.
The safe-haven metal up for the third consecutive day as fragile risk conditions boosted defensive support. Overall, the momentum remains bullish throughout the European session.
On the data front, US FED chair Jerome Powell testified before a Senate committee on his renomination as the Chairman of the US Federal Reserve. Powell believes the Fed will take steps towards normalizing policy this year.
Moving ahead today, the important events to watch:
US – CPI: GMT – 13.30
US – EIA crude inventories: GMT – 15.30
Worldwide, more than 305 million people have been confirmed infected and more than 5.49 million have died. The United States has confirmed over 60 million cases and has had more than 837,000 deaths from COVID-19, the highest totals in the world.
Technical Outlook and Review
EURUSD: For today the first support for the Euro appears to be around 1.1340, in the short-term any break below 1.1340 is the next downside level is to watch 1.1300/1.1270. On the other upper side, the immediate resistance around 1.1385 any break and close above this level will open 1.1410 then 1.1440.
The important levels to watch for today: Support- 1.1340 and 1.1300 Resistance- 1.1385 and 1.1410.
GOLD: The yellow metal trading steady on Wednesday. Any break above $1820 levels can extend gold prices towards $1830 in the coming days and on the other hand the immediate support is around $1810 and $1800.
The important levels to watch for today: Support- 1810 and 1800 Resistance- 1820 and 1832.
Quote of the day - A trading philosophy is something that cannot just be transferred from one person to another; it’s something that you have to acquire yourself through time and effort - Richard Driehaus.
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