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Today’s Economic Calendar
At eleven o’clock in the morning GMT, the Bank of England’s monetary policy leaders meet and announce the interest rate decision.
– At half past twelve in the afternoon, the producer price index in the United States will be released on a monthly basis for the month of April.
At the same time, the US Department of Labor’s weekly report is also released, showing the number of jobless claims during the first week of May.
– At a quarter past one in the evening, Bank of England Governor Andrew Bailey will give a speech to talk about the state of the British economy and respond to questions from journalists.
Top News in Global Markets:
Yesterday:
– The German CPI came in similar to expectations and the previous reading in April on a monthly basis.
-In the United States, the Consumer Price Index in April rose on a monthly basis from the previous reading, while declining slightly on a yearly basis.
– From the Energy Information Administration, the weekly report on US oil inventories was released, inventories were much higher than expected in the first week of May, indicating demand is weaker.
And this morning:
China’s CPI declined in April year-over-year, compared to expectations and the previous reading, and the PPI in the same month also declined year-over-year.
It is expected this evening:
– The Bank of England’s monetary policy leaders meet and announce the interest rate decision, followed by a speech by Governor Andrew Bailey on the British economy and a response to journalists’ inquiries.
– In the United States, the Producer Price Index for the month of April will be released.
-The US Department of Labor issues a weekly report indicating the number of applications for unemployment benefits submitted by job seekers.
– The Energy Information Administration also releases the weekly report on natural gas inventories
Technical Analysis
Dollar Index – 1 Hour Timeframe
The US dollar index continued to move Sideways after yesterday’s decline due to US inflation data, which came higher than expected, rebounding to the upside near the support levels around 101.11.
Technically, we expect the index to rise to the resistance levels around 101.60 and 101.20, which we expect to decline again around them during today’s trading, and target the support levels around 101.11, especially in case the levels around 101.50 are broken…
Gold – 1 Hour Timeframe
US inflation data and weak China data pushed the yellow metal up near 2050 US dollars, awaiting US PPI data and consumer inflation expectations on Thursday.
Technically, we see on the chart the return of gold prices below 38% Fibonacci levels, which is a current resistance area around $2039, so we see that gold is on its way to a further decline to 2019.65 levels, provided it breaks the 100-hour moving average and stays below the resistance area.
US Dow Jones – 1 Hour Timeframe
The Dow Jones industrial index fell yesterday, Wednesday, touching the support levels around 33260 that we referred to yesterday, bouncing from it to the upside at the end of yesterday to complete its sideways movement over the short-term intervals.
Technically, we expect the index to continue rising during today’s trading, targeting resistance levels around 33720.
US Crude Oil – 1 Hour Timeframe
Oil is trading around $73.00 levels amid weak Chinese inflation and the US Consumer Price Index slipping to 4.9% on an annual basis for the month of April.
Technically, oil is trading near $72.80 in the early hours of this morning, after retreating from the weekly high the previous day, so we see that if the support level of 72.80 is broken, the drop will continue towards the next support around $71.25.
Bitcoin – 4 Hour Timeframe
Bitcoin prices retreated from a week’s high of $28,288 with weak US inflation data yesterday.
Technically, Bitcoin prices rebounded from the 38% Fibonacci area to form support around $26,660 levels, despite that, Bitcoin is still under selling pressure, and therefore we see a continuation of the decline and a retest of the current support area, waiting to break it for further decline.
EUR/USD – 1 Hour Timeframe
The sideways movement still prevails on the euro against the US dollar on the short-term intervals, rebounding to the upside since the end of yesterday, and now trading around the resistance level 1.09785.
Technically, we expect more declines on the pair during today’s trading to target the support levels around 1.09430, as long as it remains stable below the resistance levels around 1.09785, and in the event of a break, we target 1.09000
GBP/USD – 1 Hours Timeframe
The (GBP/USD) pair lost its gains yesterday, after the weakness of US inflation data, to return once again to below 1.2600.
Technically, the pair is trading below the 100-hour moving average, on its way to testing the 200-period moving average, around 1.2575 prices, and if broken, the decline will continue towards 1.2552, which is considered the main support area, and breaking it would open the way for a further decline to 1.2492
GBP/JPY – 1 Hour Timeframe
The (GBP/Yen) pair continued its decline today, Thursday, after breaking the support levels around 169.50, to rise slightly today over the short-term intervals.
Technically, we see more bullishness on the pair in an attempt to retest the resistance levels around 169.50, then we suggest a decline around it to the downside once again, targeting the support levels around 168.50.
USD/JPY – 1H TimeFrame
The (Dollar/Yen) pair rebounded today with the first hours of trading today, Thursday, around the support levels of 133.85, and is now trading around the levels of 134.30.
Technically, if the pair breaches the resistance levels around 134.30, we aim for more ascending on the pair during today’s trading around 134.65, and then in the event of a breach, we target the next resistance level around 134.90.
USDCHF-1H TimeFrame
The USD/CHF pair is moving sideways over the short-term intervals, bouncing up from the lower border of that movement around the support levels at 0.8880.
Technically, we expect the pair to rise and touch the resistance levels around 0.89150, then 0.89295, around which we expect it to bounce back down again and fall within the consolidation movement again.
