Today’s Top News

In today’s financial landscape, staying abreast of key developments is paramount for informed decision-making.
This summary provides insights into the latest market updates, encompassing diverse elements such as currency pairs, stock indices, commodities, etc.

Canadian Trade Balance at 17:30 Dubai time

Table of Content

Euro Japanese Yen

Dow Jones Index

British Pound US Dollar
Oil
Gold
US Dollar Japanese Yen

Euro Japanese Yen

Today’s Top News:

The European Central Bank hinted at the expected continuation of the inflation decline in the Eurozone. The ECB recently announced keeping interest rates unchanged at 4.50% for the second consecutive time. However, ECB President Christine Lagarde emphasized that the bank’s policies should not be lax.

On the other hand, the Bank of Japan continues its accommodative monetary policy, waiting for more evidence on wage growth and its impact on inflation to achieve its 2% target.

Bullish Scenario:

During the four-hour time frame, the pair rose from a harmonic pattern, moving within an ascending price channel since last December’s low. The price is expected to rise to levels between 158.10 and 159.00.

Bearish Scenario:

The price stays below the 200-period moving average and resistance levels of 158.10–159.00. In the event of a decline, the next target for the pair would be the lower channel boundary at levels around 156.15.

Dow Jones Index

Today’s Top News:

Opinions may change regarding the monetary tightening policy and interest rate cuts based on the upcoming US inflation reading scheduled for Thursday. Strong employment data in the US, with increasing wages, suggests a robust labor market and hints at potential inflation increases.

Bullish Scenario:

The Dow Jones Index is moving upward on the four-hour time frame from the November low within a price channel.
A continued index rise is expected towards the next resistance area at 37,835.

Bearish Scenario:

If the index breaks the downward price channel and remains stable, the trend may shift downward, targeting the next support levels at 36,985 and then 36,525.

British Pound US Dollar

The US dollar declined yesterday after early gains due to negative developments affecting its performance, mainly the drop in US bond yields. The dollar index, measuring the currency against six major currencies, received limited support from Federal Reserve member Lori Logan’s statements urging interest rate hikes to counter inflation.

Bullish Scenario:

The GBP/USD pair is moving sideways between support at 1.2611 and resistance at 1.2826 on the hourly time frame. Rebounds are observed after touching the support level. Prices staying above the pivotal level of 1.2672 signal positivity for further upward movement towards 1.2826, and if breached, the next target could be 1.3000.

Bearish Scenario:

If prices drop below the pivotal level of 1.2672, it signals a retest of support at 1.2611. Breaking this level may indicate a trend reversal, targeting support at 1.2500.

Oil

Today’s Top News:

Oil prices dropped at the beginning of this week, reaching $70 per barrel, amid concerns about oversupply, especially after Saudi Arabia (the world’s largest oil source) cut prices to the lowest level in 27 months. Global forecasts indicate an excess of oil at present. Geopolitical tensions in the Red Sea and disruptions in navigation have a limited impact on prices. The weak US dollar, due to market expectations of interest rate cuts starting in March, has also influenced prices.

Bullish Scenario:

In the case of an upward move and breaking the pivotal level of $73.50, it signals a return to retest the resistance at $76.04. Closing above this level may indicate a short- to a medium-term trend reversal.

Bearish Scenario:

Oil prices are trading in a sideways range between $67 (support) and $76 (resistance) in short-term time frames. However, the overall trend remains bearish, with prices below the 200-period moving average on the daily chart. If the psychological support at $70.00 is breached, it signals a potential further drop to the main support.

Gold

Upcoming influences on gold movements include US inflation data, which is expected to show positive signs of recovery. A yearly Consumer Price Index reading of around 3.2%, higher than the previous 3.1%, may impact gold negatively. A reading above 3.2% could suggest a bearish scenario for gold, while a reading below 3.1% could maintain gold’s positive outlook.

Bullish Scenario:

Assuming prices rise again in a strong upward trend, breaking the first peak above $2060 on the 30-minute chart would indicate further upside towards $2089, and, if broken, the next target would be $2104.

Bearish Scenario:

After a decline from below the digital resistance level of around $2060, prices continued to fall to support around $2016. If prices retest the upper channel level, aligned with the technical resistance at $2040, a potential further decline towards $1972 is possible.

US Dollar Japanese Yen

After the release of the Japanese Core Consumer Price Index and the stability of Japanese inflation around 2.1%, expectations point to a potential continuation of the Bank of Japan’s current monetary policy. This could lead to further declines in the Japanese yen during the first quarter of the current year.

Bullish Scenario:

After breaking out of the descending digital channel and trading in a positive price behavior, retesting the ascending trendline around 143.75 increases the likelihood of an upward move to target levels at 146.45. Breaking and staying above it could lead to further gains towards 148.15.

Bearish Scenario:

The bearish scenario activates if prices resume a downward trend, confirmed by breaking the first price bottom below levels of 143.40. At that point, further downward movement to retest the previous low around 140.70 to 140.30 becomes likely. If broken and staying below, a visit to levels at 138.90 may occur.

Today’s Top News

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Today’s Top News