EUR/USD: the European currency is waiting for the outcome of the US Federal Reserve
The euro is trending in different directions, testing 0.9950. Market participants are refraining from new trades, taking a wait-and-see attitude, wanting to assess the outcome of the U.S. Federal Reserve meeting minutes. Earlier the European currency had been keeping the downward trend, which caused the instrument to fall below the support at 1.0000.
An unclear outlook in the European region put moderate pressure on the EUR/USD currency pair, while the governments are regularly approving strong measures to combat rising prices. Thus, according to ECB (European Central Bank) head Christine Lagarde, as part of the fight against rising inflation is likely to increase the key indicator to the level at which economic growth will be stopped. For the record, the EU's marginal recorded inflation rate has surpassed the 9.0% target and will not be able to decrease in the short term.
- Resistance levels: 1.0000, 1.0050, 1.0100, 1.0150.
- Support levels: 0.9950, 0.9900, 0.9850, 0.9800.
USD/JPY: The 'American' is trying to overcome the 144.00 level
The American currency has been trading weakly higher within the framework of the unstable "bullish" trend for the third session in a row. USD/JPY reached the level of 144.00, having a prospect for further growth, being in expectation of the key positive signal - toughening of the monetary policy by the national regulator. For the record, the final minutes of the two-day meeting of the US Federal Reserve and the following press-conference of the officials were announced for today. According to preliminary estimates, the key value will be increased by 0.75%; moreover, the officials may signal the necessity to continue raising the borrowing cost. Some experts allow the index to grow by 1.00% at once, however under the current circumstances, the probability rate of such an outcome does not exceed 17%.
- Resistance levels: 144.00, 145.00, 146.00, 147.00.
- Support levels: 142.54, 141.50, 140.78, 139.67.
The precious metal is trading flat, testing the level of 1664.0.
Experts note that the demand for contracts on gold has been declining recently. As follows from data publication by CFTC (Commodity Futures Trading Commission), sellers promptly closed contracts during the previous week against increase in positions from buyers. Swap dealers, which react quite actively to market changes, among buyers increased the number of positions by 0.535 thousand contracts, and sellers decreased by 4.059 thousand deals. Particularly, the general trend shows the reduction of contracts for three weeks in a row, at this stage it is from 103.9 thousand to 97.3 thousand.
- Support levels: 1650.0, 1610.0.
- Resistance levels: 1680.0, 1730.0.
"Black gold" of WTI grade is moving within the medium-term downward dynamics, but managed to stabilize between the indicators 83.00-87.00.
During the trading session on Wednesday, global markets are vulnerable and are influenced by a number of contrary factors. Thus, the participants of the trades expect the results of the US Federal Reserve's two-day monetary policy summit to be announced today, in which the key indicator correction might reach 0.75% or even 100 basis points at once, which would strengthen the US dollar against the main alternative competitors, not excluding the commodities segment. Also, the dominance of hawks in the agencies may lead to a more aggressive strategy of monetary policy tightening in the United States and the euro area countries, after which the risk of recession and decline in demand for raw materials will increase significantly. The asset is supported by oil shortage in the markets with the probability of further aggravation. According to the latest information of the cartel OPEC +, 3.58 million barrels less "black gold" per day are produced in accordance with the production plan, which amounts to 3.5% of global consumption. This situation was made possible due to production sagging and economic constraints reducing oil production in Russia.
- Resistance levels: 87.50, 95.45, 100.00.
- Support levels: 81.25, 78.00, 75.00.
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