January US PPI rates eyed

USD continues to wobble, while the pound nurses losses

The USD continued to wobble in the FX market and across the Atlantic, the pound nursed losses as political uncertainty seems to arise after an election in Manchester showed that the Labour party ended third. In the Far-East, JPY continued to get some support as Japan’s finance minister Katayama, warned of the government’s increased vigilance for sudden FX moves.

Today we highlight the release of France’s preliminary HICP rates for February and from the US the release of the PPI rates for January.

US stock markets retreat

US stock markets were on the retreat yesterday, despite the better-than-expected NVIDIA earnings report. Market participants’ worries seem to remain about investments and the role of AI and could not be shaken by NVIDIA’s robust forward guidance.

We also note that Netflix dropped its bid for Warner Bros, practically leaving Paramount Skydance as the winner of the bidding war, which in turn allowed its share price to rise before correcting lower.

Oil prices regain losses

Oil prices regained losses they made yesterday and stabilised, in anticipation of the result of the US-Iranian negotiations in Geneva. The negotiations were extended as progress was reported. Negotiations are expected to be resumed in Vienna next week, yet the possibility of a US military action is still present. 

Bitcoin stabilises

Bitcoin is about to end its third month in the reds, yet for the time being we note that the cryptocurrency’s price seems to be stabilising.

We still view the behaviour of Bitcoin’s price to be fundamentally linked with the market sentiment and should we see a risk-off market sentiment intensifying, we may see the crypto’s price losing further ground and vice versa. 

Autres points forts pour aujourd'hui

Today we get Sweden’s, Switzerland’s and France’s GDP rates for Q4, Switzerland’s KOF indicator for February and in the American session, we highlight the release of Canada’s GDP rates for Q4 and the US Atlanta Fed GDP rates for Q1, while BoE MPC member Pill speaks.

In Monday’s Asian session, we get Australia’s and Japan’s final manufacturing PMI figure for February.

Charts to keep an eye out

WTI’s price tumbled yesterday yet regained its losses the same day and remained stable in today’s Asian session, just below the 66.20 (R1) resistance line. We note that the RSI indicator continues to cruise above the reading of 50, implying that there is still a bullish predisposition of market participants.

We maintain our bias for a sideways motion of the commodity’s price at the current stage. For a bearish outlook to emerge we would require WTI’s price action to start actively aiming if not breaching the 61.80 (S1) support line. For a bullish outlook to be adopted, WTI’s price action would have to recover the losses of the past two days, break the 66.20 (R1) resistance line and start aiming for the 70.00 (R2) level.

EUR/USD’s price was stable remaining comfortably between the 1.1915 (R1) resistance line and the 1.1665 (S1) support level, yesterday. The RSI indicator continues to run along the reading of 50 implying a rather indecisive market, while at the same time the Bollinger bands are narrowing, two elements that could allow the sideways motion of the pair to continue. Should the bulls take over, we may see EUR/USD breaking the 1.1915 (R1) resistance line and start aiming for the 1.2115 (R2) resistance barrier. Should the bears take over, we may see the pair breaking the 1.1665 (S1) support line and start aiming if not breaching the 1.1465 (S2) level.

WTI Daily Chart

• Support: 61.80 (S1), 59.80 (S2), 56.00 (S3)
• Resistance: 66.20 (R1), 70.00 (R2), 73.35 (R3) 

EUR/USD Quotidienne

• Support: 1.1665 (S1), 1.1465 (S2), 1.1260 (S3)
• Resistance: 1.1915 (R1), 1.2115 (R2), 1.2265 (R3) 

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