The British pound hit a fresh weekly high of 1.3190 on Thursday against the US dollar ahead of the Bank of England interest rate decision. While the sterling pulled back from the recent highs, it was still trading not far from the weekly highs reached against the dollar during the early session. The market participants anticipate the BOE expects to raise interest rates after doing so at previous meetings.
GBPUSD key technical levels to watch for today:
Support: 1.3080 and 1.3000
Resistance: 1.3240 and 1.3300
Asian shares traded higher and US futures held the previous session gains after the Federal Reserve announced a 25-basis point rate hike that has long been anticipated. The Fed raised interest rates for the first time since 2018 and the central bank also raised its projections for inflation and signalled six more hikes this year. “The median projection of the appropriate level of the federal funds rate is 1.9% at the end of this year,” Fed Chairman Jerome Powell said.
Crude oil futures trades steady on Thursday. On Wednesday the oil prices ended flat following the release of weak EIA crude inventory data. The data showed the US crude stockpiles climbed 4.3 million barrels last week.
In the currency market, the US dollar index plunged to a fresh weekly low following the release of the most waited FOMC meeting outcome. On the other hand, the Australian dollar advanced against the Euro and the greenback was boosted by a stronger-than-expected Australian employment report.
The safe-haven metal hovers near the fresh session high of $1940. However, the overall momentum remains bearish with rising hopes of a deal to halt Russia’s war in Ukraine. Moving ahead to the North American session, the gold traders should monitor the release of US weekly jobless claims and Philly Fed manufacturing data.
On the data front, the Commerce Department reported the latest retail sales data on Wednesday. The data showed the US retail sales increased by 0.3 in February; a rise a touch lower than the 0.4% gain expected and the data came less than January’s 4.9 per cent increase.
Moving ahead today, the important events to watch:
UK – BOE Interest rate decision and statement: GMT – 12.00
US – Weekly jobless claims: GMT – 12.30
US –Philly Fed Manufacturing Index: GMT – 12.30
Worldwide, more than 450 million people have been confirmed infected and more than 6 million have died. The United States has confirmed over 79.4 million cases and has had more than 963,000 deaths from COVID-19, the highest totals in the world.
Technical Outlook and Review
EURUSD: For today, the resistance for the pair is above 1.1090, any break over targets 1.1130 minimum. On the other side, the immediate support is near 1.1000 and any break will drag the pair to 1.0950 and 1.0920 levels.
The important levels to watch for today: Support- 1.1000 and 1.0950 Resistance- 1.1070 and 1.1100.
GOLD: In the short-term perceptive, the immediate bias will remain bullish as long as prices are held above $1930. On the flip side, any break below $1922 then the next support near the $1912 followed by $1900 level.
The important levels to watch for today: Support- 1932 and 1920 Resistance- 1946 and 1952.
Quote of the day - “The majority of short-term trading results are just random. In the long term, the money ends up with those that can trade and manage risk.”