January 21, 2022
EUR/USD: The European currency fell against the US dollar on Thursday. The Eurozone December Consumer Price Index was confirmed at 5% year-over-year, while the core reading also met the preliminary estimate posting. This was record-high inflation in the euro area. As for the US, Initial Jobless Claims for the week unexpectedly rose and were worse than market expectations. The country struggles to overcome the Omicron wave. The US also published Philadelphia Fed Manufacturing Survey, which rose better than expected. Today, European Central Bank President Christine Lagarde will give a speech on Global Economic Outlook. The Eurozone will also publish the preliminary estimate of January Consumer Confidence. The local support level can be seen at 1.1300. A breakout below could take the pair to an immediate target of 1.1245.
AUD/USD: The Australian dollar rose against the US dollar yesterday after strong Aussie employment figures and Inflation expectations. Australia’s Unemployment Rate fell to the 14-year low while the Employment Change also rose past expectations. The US Federal Open Markets Committee is expected to convene its monetary policy meeting on Wednesday next week, at the conclusion of which market participants will closely parse the committee’s statement regarding the quantitative tightening timeline. Due to this, currencies might be sticking to the range, waiting on Fed’s report. The local resistance level can be seen at 0.7215. A breakout to the upside can trigger growth to 0.7280.
XAU/USD: Gold prices steadied around a two-month high on Thursday, hit in the previous session. At the moment, Gold prices are affected by the hawkish Fed expectations, the downbeat US Treasury yields, as well as the US Dollar Index. Recently, the Fed sentiment-driven yields’ price action and inflation concerns have been the underlying theme, which will remain the main catalysts. Gold can correct to $1835, and after that, the price will probably continue its upward movement towards $1855.