Technical Analysis Report, Economic News & Price Chart – 13 May 2022

Technical Analysis Report, Economic News & Price Chart – 13 May 2022

Technical Analysis

Powell says Fed will Fix Inflation

Asia Pacific stocks were up on Friday morning. The Shanghai Composite is up 0.91% at 3,082.79. Overall, the Singapore MSCI is up 2.17% at 289.05. Over in Hong Kong, the Hang Seng Index is up 2.78% at 19,765. In Japan, the Nikkei 225 is up 2.41% at 26,390.00, while the Topix index is up 1.75% at 1862.00. South Korea’s Kospi is up 2.12% at 2604.24. Australia S&P/ASX 200 up 1.93% at 7075.10.

Top News of the Day:

Calling stable prices, the “bedrock” of the economy, Federal Reserve Chair Jerome Powell said on Thursday the U.S. central bank’s battle to control inflation would “include some pain” as the impact of higher interest rates is felt, but that the worse outcome would be for prices to continue speeding ahead.

After using aggressive monetary policy to support the economy through the COVID-19 pandemic, the Fed approved a quarter-percentage-point rate increase in March, but some analysts believe policymakers have fallen too far behind to curb price increases without the sort of sharp rate hikes that might cause a recession.

Market Summary as per 12/05/2022:

European equities Thursday closing. The DAX futures contract in Germany traded down 0.64% at 13,739.64, CAC 40 futures up 0.77% at 6253.98 and the UK 100 futures contract in the U.K. up 0.81% at 7,291.69.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.33% at 31730.31. The S&P 500 down 0.13% at 3930.09 and the Nasdaq 100 down 0.18% at 11945.50, NYSE closes up 0.19% at 14931.09.

Top Market News Today:

In the Forex market, GBPUSD up 0.06% at 1.2206. The USDJPY up 0.23% at 128.551. The USDCHF down 0.09% at 1.0019. EURUSD up 0.14% at 1.0392, EUR/GBP up 0.11% at 0.8513. The USD/CNY up 0.13% at 6.7954 at the time of writing.

In the Commodity market U.S. Gold futures up 0.10% at $1,824.50. Elsewhere, Silver futures up 0.79% at $20.824 per ounce, Platinum up 0.74% at $952.00 per ounce, and Palladium up 3.31% at $1967.50.

Crude Oil up on Friday; Brent crude oil up 0.54% at $108.40 per barrel while U.S. West Texas Intermediate (CLc1) up 0.35% at $105.25.

In the Cryptocurrency Markets, Bitcoin at 30330.27 up 4.91%, Ethereum up 6.60% at 2079.19, Litecoin at 68.67 up 7.00%, at the time of writing.

Top Market Segment to Watch Out Today:

DOLLAR INDEX: The U.S. dollar edged lower in early European trade Friday, but remained near a 20-year high with Federal Reserve Chair Jerome Powell largely cementing the likelihood of further hefty interest rate rises to combat stubbornly high U.S. inflation.

At 3:15 AM ET (0715 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, fell 0.2% to 104.645, just off its overnight two-decade peak of 104.92.

Economic News:

US: The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, touching the highest level in three months, but there is no material shift in labor market conditions amid strong demand for workers.

The report from the Labor Department on Thursday also showed that the number of people on state unemployment rolls was the smallest in more than 52 years at the end of April. Companies, scrambling to fill record job openings, are boosting wages, contributing to keeping inflation elevated.

Initial claims for state unemployment benefits increased 1,000 to a seasonally adjusted 203,000 for the week ended May 7, the highest level since mid-February. Data for the prior week was revised to show 2,000 more applications received than previously estimated. Economists polled by Reuters had forecast 195,000 applications for the latest week.

Eurozone: Britain’s economy unexpectedly shrank in March, marking a weak end to the first quarter of a year when the risk of recession is looming and increasing pressure on the government to offer more support to inflation-hit households.

Gross domestic product fell 0.1% from February, hurt by a slump in car sales due to supply-chain problems, the Office for National Statistics said.

That left growth in the first three months at 0.8%, weaker than the Bank of England’s 0.9% forecast and the 1.0% median forecast by economists polled by Reuters. 

The January-March period is likely to mark a high point for the year, with households facing their biggest squeeze on disposable income in decades as the policy dilemma facing a BoE intent on keeping a lid on inflation – while not choking off prospects for growth altogether – deepens.

Top Economic Releases Today:

  1. U.S. Import Price Index (MoM) (Apr) today at 8:30 this time estimated 0.6%, previously which was 2.6%. 
  2. RUSSIA Central Bank reserves (USD) today at 9:00 previously which was 593.1B.
  3. RUSSIA CPI (YoY) (Apr) today at 12:00 previously which was 16.7%.
  4. EURO ZONE Industrial Production (MoM) (Mar) today at 5:00 this time estimated -2.00%, previously which was 0.7%.
  5. SPANISH CPI (YoY) (Apr) today at 3:00 this time estimated 8.4%, previously which was 8.4%.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 1.2220, TAKE PROFIT AT 1.2171 AND STOP LOSS AT 1.2253

EURUSD

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 1.0415, TAKE PROFIT AT 1.0371 AND STOP LOSS AT 1.0444

GBPJPY

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 157.490, TAKE PROFIT AT 156.722 AND STOP LOSS AT 157.718

CHFJPY

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 128.680, TAKE PROFIT AT 127.970 AND STOP LOSS AT 128.939

EURO STOXX 50

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 3644.00 TAKE PROFIT AT 3605.00 AND STOP LOSS AT 3683.00

WTI CRUDE OIL

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- BUY AT 106.75 TAKE PROFIT AT 107.99 AND STOP LOSS AT 105.15

GOLD

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 1822.12, TAKE PROFIT AT 1821.11 AND STOP AT 1823.84

BITCOIN

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 30182.00 TAKE PROFIT AT 29656.91 AND STOP AT 30813.19

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