Daily Market Report - Wednesday, Jan 18, 2023


For today all eyes will be turning to the release of the monthly US Retail Sales figures and Producer Price Index (PPI) data. The Commerce Department is set to release its monthly retail sales report for December today, the retail sales figures are expected to have grown by a modest 0.1%. December’s PPI is expected to come out with an annual growth rate of 5.9%, slower than the 6.2% seen in November.

Investors and traders should closely monitor the release of both PPI and retail sales numbers to get clues on demand as the Federal Reserve aggressively raises rates to fight inflation.


US stock futures remain under pressure after the hawkish comment from Richmond Fed Bank President Tom Barkin. The stopping point for Fed rate increases will depend on the path of inflation – Barkin said. On the other hand, the Japanese shares inch up to fresh monthly highs following the release of the Bank of Japan decision.


Crude oil futures edges higher as markets await the US PPI figures and weekly inventory report. Meanwhile, the upside momentum was lifted by positive comments from a top Chinese economic official. He said at the World Economic Forum that the world’s second-largest economy and top crude importer will likely rebound to its pre-pandemic growth trend this year as Covid infections passed their peak.


In the currency market, the British pound remains one of the strongest currencies this week supported by better-than-expected economic data. GBPUSD extend the gains on Wednesday Morning and reached a fresh monthly high of 1.2340 after Britain's CPI report showed the inflation rate slowed to 10.5% in December.


The safe-haven metal reversed from the previous early session losses. As of this writing, the precious metal trades near the $1912 zone. Moving ahead, gold traders should closely monitor the comments from FED policymakers and also watch the release of US producer price index data.

Economic Outlook

On the data front, the Bank of Japan decided to leave the monetary policy unchanged, with its benchmark interest rate and 10-year government bond yield holding steady at historic lows of -0.1% and 0% respectively. The Bank also indicated that it “will not hesitate to increase easing when necessary” and that it “will be flexible in making large-scale bond purchases”

“We believe that the control of the yield curve works” and that this tool is “viable” in the long term – BOJ governor Kuroda said.

Moving ahead today, the important events to watch:

Eurozone – CPI: GMT – 10.00

US –Retail sales: GMT – 13.30

US – PPI: GMT – 13.30

Coronavirus update:

Worldwide, more than 667 million people have been confirmed infected and more than 6.7 million have died. The United States has confirmed over 103 million cases and has had more than 1.12 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD reversed from the fresh weekly lows after the pair found buyers near 1.0770. In the long term, watch for weekly closing above 1.0900 or below the 1.0700 area, which will give a larger confirmation of direction in the long term.

The important levels to watch for today: Support- 1.0820 and 1.0800 Resistance- 1.0870 and 1.0900.

GOLD: For today, If the bullish momentum continues then the next upside level is to watch $1915 and $1920. On the other hand, the next immediate support prevails at $1900, a further breakout of $1895 can lead the metal towards $1885/00 levels.

The important levels to watch for today: Support- 1900 and 1895 Resistance- 1915 and 1920.

Quote of the day - “The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.” - Paul Tudor Jones.

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