The king dollar regains the upside momentum on Thursday following the release of the latest US inflation report. The inflation data showed that U.S. consumer inflation jumped 7.9 per cent over the past year, the sharpest spike since 1982 bolstered by rising gas and food prices.
Wall Street ended higher on Thursday, but the upside was capped because investors were cautious ahead of next week's FOMC meeting. The US central bank is widely expected to raise interest rates by 25 basis points especially after the American inflation accelerated to a four-decade high last month.
Crude oil futures trade flat on Friday as the oil traders wait for any new developments in the Ukraine crisis. Meanwhile, the overall momentum remains mixed as highly awaited cease-fire talks between the foreign ministers of Russia and Ukraine failed.
In the currency market, the risk-linked currencies the Australian dollar and New Zealand dollar retreat from the highs on Friday as the talks between Russia and Ukraine yielded no progress as the war entered the third week on Thursday.
The safe-haven metal continues to swing between losses and gains from the last two days. The metal struggling to hold above the $2000. Moving ahead to the North American session, the gold traders should closely monitor the release of the US March Michigan consumer sentiment report.
On the data front, The ECB failed to impress the investors on Thursday. The central bank said that its bond purchase program would be reduced sooner than previously expected, citing the inflationary pressures that the war in Ukraine has caused on the European continent.
Worldwide, more than 445 million people have been confirmed infected and more than 6 million have died. The United States has confirmed over 79 million cases and has had more than 960,000 deaths from COVID-19, the highest totals in the world.
Technical Outlook and Review
EURUSD: For Euro, the first nearest support level is located at 1.0950. In case it breaks below this level, it will head towards the next support level which is located near 1.0900. On the upside, 1.1020 will act as an immediate and strong hurdle while 1.1080 will be a critical resistance zone because above this, bulls are likely to dominate.
The important levels to watch for today: Support- 1.0950 and 1.0900 Resistance- 1.1020 and 1.1050.
GOLD: For today, the resistance for metal is around $2000, any break over targets $2006/20. On the downside, any meaningful pullback now seems to find some support near the $1980 zones, below which the slide could further get extended towards the $1970/55 region.
The important levels to watch for today: Support- 1980 and 1965 Resistance- 2000 and 2020.
Quote of the day - The single most important advice I can give is, to learn from your mistakes. That is the only way to become a successful trader- David Ryan.