Euro/Dollar
In the American session, the currency pair held up positively. The euro showed a reversal from the US dollar in the support area of 1.0937. Most likely, market participants are closing short positions on the single European currency on the eve of the publication of important economic statistics.
There is a significant rise in the yield of US Treasury bonds to the level of 2.156%.
The US dollar continues to fall against the euro, but growth remains in tandem with the Japanese yen.
The results of the Fed's two-day meeting will be published today. Traders expect a 25 basis point rate hike.
Jerome Powell, chairman of the Federal Reserve System, announced not so long ago that he would support a rate increase of 25 bps and that in the event of increased inflation, the Central Bank would be forced to tighten measures.
The market is also waiting for the results of the meetings of the Bank of England and the Bank of Japan, which will take place this week. Many believe that the British Central Bank will raise the base rate to 0.75%.
On Wednesday, the volume of inventories, the basic retail sales indicator and the Fed's interest rate decision will be published.
Pound/Dollar
The exchange rate is currently consolidating around 1.3041. The pair still failed to break through the weekly price support. In the event of a reversal and a breakdown of the resistance boundary at 1.3081, the pound / dollar has the opportunity to reach the next mark at 1.3146.
Meanwhile, there is a significant strengthening in the yield of British bonds and a rise to the level of 1.5725%.
According to the National Statistical Office, unemployment in the UK for the period November 2021 – January 2022 is 3.9%. This is 87 thousand less than in August-September and 402 thousand less than in the same period a year ago. The employment rate in the country for the period from November to January amounted to 75.6%.
On Wednesday, the currency pair may react to the economic statistics of the United States, as well as to the Fed's rate decision.
Gold
The banking metal continues to adhere to the downward trend. If there are sales, the first target is $1,878 per ounce.
Trading Tuesday ended with the growth of the US stock market on the background of positive dynamics from the consumer goods, services and technology sectors. The Dow Jones rose by 1.82%, the S&P 500 index increased by 2.14%.
Forecasts about the global economy leave much to be desired. The data of the last reporting quarter for 2021 show a decrease in the GDP growth rate of the G20 countries by 1.4%.
The deterioration of statistics was also influenced by a significant decline in India's GDP. In the fourth quarter, the country's economy grew by only 1.8%, although in the previous reporting period there was a sharp rise of 13.7%. The growth rate of the EU indicator also slowed down, from 2.2% to 0.4%. In Germany, economic volumes fell by 0.3%.
Cryptocurrencies
BTC is currently consolidating in a higher trading range of $42456 - $39856, breaking through the resistance level of $39856. The increase in trading dynamics in the digital asset market is most likely due to the expectation of a Fed rate hike.
According to the results of Tuesday, the capitalization of the crypto market amounted to 1.80 trillion dollars, while on Monday there were figures of 1.72.
The Committee of the European Parliament, responsible for coordinating financial services, voted for the entry into force of the draft law on the regulation of cryptocurrencies. According to media reports, there is no amendment in the final version of the document that could be regarded as a ban on bitcoin. ECON will continue to discuss this issue, and its next stage will be held at the level of the European Commission and the EU Council.