The fresh wave of uncertainties around a situation in the global economy resulted in a risk-off sentiment across the markets. S&P500 and Nasdaq lost more than 3% over yesterday’s trading. The US dollar index strengthened towards 105. The oil price rose on the news about limited supplies.
Today, the ECB president Lagarde, Fed chair Powell and BOE governor Bailey will hold three separate speeches at 16:30 GMT+3. They will talk about inflation, economic growth, and upcoming threats. Expect sharp moves in Forex majors
Top Headlines:
The head of the Bank of England says that the risk of a recession in the world economy is very high.
The oil market players expect a continuation of the price rally amid a supply deficit from Libya and Ecuador and limited options OPEC+ has to boost oil supplies. Meanwhile, OPEC member countries meet today to discuss current market situation. Expect volatility from Brent oil and WTI oil. According to Fed member Mester, the regulator will discuss the possibility to raise the interest rate by either 50 or 75 basis points, as inflation keeps surging.
Bank of Japan Talk:
The BoJ Kuroda: Japanese economy has not been much impacted by the trend toward global inflation; thus, monetary policy will continue to be accommodating. This is a bearish sign for the Yen that is already weak. Bitcoin tested the ground below the 20 000 level. The next target for sellers lies at 17,000
About Euro currency:
The pair broke below the 50-period SMA on H4 and tested the lower border of the consolidation at 1.0480. Now it can reverse from this level towards the upper border of the range at 1.0570. If the pair breaks below 1.0485, the next support will lie at 1.0440
The Loonie Canada:
The pair bounced off the support level at 1.2820 and strengthened towards 1.2900. Based on the previous behavior of the pair, it can consolidate between 1.2900 and 1.2820 for a longer time. If the price breaks below 1.2820, the next support will lie at 1.2770
Gold commodity:
The price of gold has fallen below the 200-period SMA and tested the short-term ascending trend line. If it manages to break it, the next key level will lie at 1805. After that, the next support will lie at 1780. On the upside, the resistance lies at 1850