Daily Market
Report
January 25, 2024
Focus of the day
Today, the European Central Bank (ECB) is poised to maintain borrowing
costs, keeping the deposit rate at 4% during its third consecutive
meeting, amidst efforts to temper investor expectations for imminent
rate cuts. Despite market speculation favoring a rate decrease as early
as April, ECB officials, including President Christine Lagarde, signal a
more conservative stance, suggesting a likely commencement of
monetary easing around June. This approach hinges on acquiring
reassurance that inflation is steadily declining towards the 2% target,
with significant data, particularly on wage deals, expected to inform the
June meeting's decisions.
Amidst this backdrop, the ECB confronts mixed economic indicators,
with some data hinting at a potential extension of the euro area's
economic downturn into the current quarter, contrasted by a resilient
labor market. Inflation, having seen a slight increase in December, is
anticipated to decelerate throughout 2024, aligning with the ECB’s
longer-term forecasts. As the ECB navigates these complexities, the
upcoming review of its operational framework and internal criticisms of
Lagarde's presidency adds layers to the decision-making landscape,
underscoring the challenges in balancing economic recovery, inflation
control, and policy implementation.
Latest news
Tesla's Q4 2023 earnings report fell short of analysts' expectations
1 with only a 1% year-over-year revenue increase, as the company
signals growth slowdown ahead of a new model launch next year.
Analysts believe the significant decline in trading volume for
2 Grayscale's spot BTC-ETF, may indicate that the selling trend is
starting to wane.
US aviation authorities have issued a directive to Boeing Co.
3 (#BA), mandating a pause on any further expansion of their 737
Max aircraft production volumes.
Oil prices rose to a one-month peak after a larger-than-expected
4 fall in US inventories and after China announced further economic
stimulus measures. XBRUSD rose, surpassing $80 per barrel.
1
EURUSD
EURUSD successfully breached the upper boundary of the bullish
wedge, subsequently retesting this edge along with the 1.0880 support
level, signaling a strong indication for continuing the bullish trend
towards the 1.095 level.
Trade now
Resistance: 1.0950, 1.1000
Long-term trend Short-term trend
Support: 1.0880, 1.0820
Gold
2
(XAUUSD)
XAUUSD is currently consolidating within a symmetrical triangle, with the
price testing the pattern's lower boundary. A break below this boundary
and the 2010.00 support level could pave the way to 1980.00. Conversely,
surpassing the 2035.00 resistance level would steer the asset towards a
target of 2060.00.
Trade now
Resistance: 2035.00,
2060.00
Long-term trend Short-term trend
Support: 2010.00, 1980.00
XBRUSD 3
XBRUSD has surpassed the boundary of the symmetrical triangle pattern
and is now facing resistance at 80.00. Breaking through this resistance
level would clear the way to 84.00. However, a corrective movement could
decrease the asset's price to 73.00.
Trade now
Resistance: 80.00, 84.00
Long-term trend Short-term trend
Support: 77.00, 73.00
EURJPY
4
EURJPY broke through the lower boundary of an ascending wedge
pattern. Further breaching the 160.000 support level would open the
path to 158.200. However, if the asset rises above 161.000, the next
target will be 162.000.
Trade now
Resistance: 161.000,
Long-term trend Short-term trend 162.000
Support: 160.000, 158.200
Economic calendar
Time Asset Event Previous Forecast
15:15
EUR
ECB Monetary -
Policy Statement
15:30
USD
Advance GDP q/q
4.9%
2.0%
15:30
USD
Unemployment 187K
199K
Claims
15:45 EUR
ECB Press - -
Conference
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This document is for general informational purposes only and is not intended as a
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