06/02/2023 Evening Reports
*In the Euro Zone, the Construction PMI for January, announced today, rose from 42.6 to 46.1, and in Germany from 41.7 to 43.3. In England, there was a decrease from 48.8 to 48.4. Apart from these data, December Retail Sales, another important data we follow in the Euro Zone, decreased by 2.7% month on month and 2.8% year on year, more than expected.
*Bank of England (BOE) Member Mann said in his speech today that the next move in the interest rate is very likely to be an increase, he sees an upside risk in inflation and they are looking for a sustainable and serious decline in price increases.
* In her speech, US Treasury Secretary Yellen stated that the economy is strong and resilient, inflation remains high but declined, and there is no recession due to the lowest unemployment rate in the last 53 years.
EUR/USD – Starts This Week Below 1.0775 With Strong US Employment…
After the Non-Farm Employment Report last week, which came far above the expectations, we saw movements in favor of the strong Dollar in the parity. Tonight, the opening was below 1.0775 and with a gap. During the day, the movement in favor of the Dollar continued. If the daily candle closes below 1.0775, the pair can move towards the 200-day average again step by step. We will be monitoring this process.
XAU/USD – Unable to Respond to Last Week’s Sharp Drop…
After profit selling from the 1948 resistance, US Non-Farm data came in much better than expected last Friday, multiplying the decline, and the yellow metal dropped nearly $80 in two days. In this state, it is holding on to the support of 1865. There has been some backlash today, and the reaction has remained weak, lasting up to the 1878 level. As it stays below the 1878 level, a pullback towards the Fibonacci 38.2 retracement of the 1615/1961 rise could continue.
GBP/USD – 1.1830 Will Be Critical in Triggering a Possible Double Top…
The strengthening of the dollar index caused a break in the GBPUSD parity. The pair, which was priced in the range of 1.2455/1.2290 for a while, is technically experiencing a double top formation and it has come back to the 1.2030 level by pulling back step by step.
The neck area of the double top corresponds to the level of 1.1830. If the decline continues and 1.1830 is broken, there may be a strong image in favor of the dollar again and the 1.10 level may come to the fore.
Unless 1.1830 is broken, it may be technically premature to expect sharp possible declines.
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