The great British pound slightly rebounded from the early losses following the release of UK macro-economic data. However, the overall momentum remains mixed after the currency pair experienced a sharp slide on Thursday. The UK GDP for the last quarter came 1%, slightly below forecasts of 1.1%.
Wall Street ended sharply lower on Thursday driven by hotter-than-expected inflation data and hawkish comments from the Fed's James Bullard.
On the earnings front, Affirm Holdings (NASDAQ: AFRM) shares plunged more than 20% on Thursday after the company accidentally tweeted its earnings before the scheduled release.
Crude oil futures extend losses as bearish sentiment dominates. On the other hand, the investors await the outcome of US-Iran talks that could lead to increased global crude supply. A deal could see the lifting of sanctions on Iranian oil and ease global supply tightness.
In the currency market, EURUSD remains under pressure after the buyers failed to break above the 1.15 phycological level. Meanwhile, the US dollar index advanced higher on Friday following the release of US inflation data that saw its biggest annual increase in 40 years.
The Safe-haven metal reversed from the previous session gains after the Fed's James Bullard supported a sharp increase of a full percentage point in the benchmark short-term interest rate by July. At the time of writing, the metal trades below $1825.
On the data front, the US Consumer Price Index, grew 7.5% from a year ago, the Labor Department reported Thursday — the largest increase since May of 1982. The result came above market forecasts of 7.3%. On a monthly basis, consumer prices increased 0.6%, in line with forecasts.
Worldwide, more than 395 million people have been confirmed infected and more than 5.75 million have died. The United States has confirmed over 76 million cases and has had more than 905,000 deaths from COVID-19, the highest totals in the world.
Technical Outlook and Review
EURUSD: The currency pair attempted to bounce but is currently struggling to extend the rebound. On the downside, the next key support area to watch today is 1.1370 and 1.1340.
The important levels to watch for today: Support- 1.1370 and 1.1340 Resistance- 1.1400 and 1.1430.
GOLD: On the daily time frame, the gold is currently supported at $1820, and the resistance is around $1840. On the upper side, the long-term buyers should wait for a daily close above the $1860.
The important levels to watch for today: Support- 1820 and 1815 Resistance- 1832 and 1836.
Quote of the day - In the long run, it's not just how much money you make that will determine your future prosperity. It's how much of that money you put to work by saving it and investing it - Peter Lynch