Market Watch
US Fed Rate
I'll start by mentioning the unexpectedly strong increase in the consumer price index in Australia. The annual rate increased by 0.4% to 2.2% with a projected growth of up to 2%. The indicator for the first quarter of this year was also better than analysts’ expectations, which provided quite strong support for AUD.
As a result of AUD strengthening, the AUD/USD currency pair reached a technical resistance level at 0.6540, while the EUR/AUD pair is at a key technical level and, as a result, the psychological level of 1.6600. During the European trading session, demand for the Australian dollar has declined markedly, which may present an opportunity for a better bargain.
I also draw attention to the upcoming publication of a report on changes in inflation in Germany. This is a preliminary estimate of the April CPI. Economists expect a significant deterioration, which is negative for EUR. As a result, if these expectations are confirmed about the inflation rate, will contribute to the weakening of the EUR.
Now let's move on to the oil market. Russian Energy Minister Alexander Novak announced that Russian oil companies will reduce production by 19% compared to February of this year. Thus confirming the readiness to fully implement the reached OPEC+ agreement. But as we see, optimism in the oil market has not particularly increased.
Prior to the opening of the American trading session, WTI crude oil was trading below $14 per barrel. At the same time, the next return of oil quotes below $13.3 may provoke a more powerful wave of sales. Let me remind you that today the US Department of Energy will report on changes in oil reserves. At this moment I expect an increase in trading activity.
Some other significant news is the latest interest rate decision from the US Federal Reserve and rates are expected to remain on hold. All attention will be focused on the comments about this decision. Any hints of a willingness to lower the basic interest rate in June may put quite strong pressure on the US dollar. As a result, today, trading activity in the US dollar may increase.
The above review is not a direct guide to trading, and can only be classed as a recommendation.
=========
Trade with the Fibo Group!
#MarketWatch
US Fed Rate
I'll start by mentioning the unexpectedly strong increase in the consumer price index in Australia. The annual rate increased by 0.4% to 2.2% with a projected growth of up to 2%. The indicator for the first quarter of this year was also better than analysts’ expectations, which provided quite strong support for AUD.
As a result of AUD strengthening, the AUD/USD currency pair reached a technical resistance level at 0.6540, while the EUR/AUD pair is at a key technical level and, as a result, the psychological level of 1.6600. During the European trading session, demand for the Australian dollar has declined markedly, which may present an opportunity for a better bargain.
I also draw attention to the upcoming publication of a report on changes in inflation in Germany. This is a preliminary estimate of the April CPI. Economists expect a significant deterioration, which is negative for EUR. As a result, if these expectations are confirmed about the inflation rate, will contribute to the weakening of the EUR.
Now let's move on to the oil market. Russian Energy Minister Alexander Novak announced that Russian oil companies will reduce production by 19% compared to February of this year. Thus confirming the readiness to fully implement the reached OPEC+ agreement. But as we see, optimism in the oil market has not particularly increased.
Prior to the opening of the American trading session, WTI crude oil was trading below $14 per barrel. At the same time, the next return of oil quotes below $13.3 may provoke a more powerful wave of sales. Let me remind you that today the US Department of Energy will report on changes in oil reserves. At this moment I expect an increase in trading activity.
Some other significant news is the latest interest rate decision from the US Federal Reserve and rates are expected to remain on hold. All attention will be focused on the comments about this decision. Any hints of a willingness to lower the basic interest rate in June may put quite strong pressure on the US dollar. As a result, today, trading activity in the US dollar may increase.
The above review is not a direct guide to trading, and can only be classed as a recommendation.
=========
Trade with the Fibo Group!
#MarketWatch
