Asian stocks and US stock futures fell after hawkish comments from the Federal Reserve, rising inflation, and the dollar rose against currencies.
Stocks fell in Asia, the Japanese fell 0.7% to 27469.50, and the Shanghai index fell 0.2%.
The Asian stock index fell for the third week in a row, the longest streak of declines since October, and futures fell 1%.
The US benchmark, which measures the greenback’s performance against its peers, jumped for the third trading session. After economic data that promote monetary tightening higher than the Fed.
US economic data led to a decline in currencies and the price of spot gold, and light crude oil is preparing to record weekly losses.
The US Producer Price Index rose in January more than expected, confirming inflationary pressures, and rose 0.7%, the most since June.
The increase in energy costs, according to US Census Bureau data, led to an increase in the index by 6% over the past year 2022.
The stock index in South Korea fell by 0.7% and in Hong Kong fell by 0.4%.
James Bullard, president of the Federal Reserve Bank of St. Louis, said. He will not rule out raising interest rates by 50 basis points at the next March meeting. added Loretta Mester, President of the Federal Reserve Bank of Cleveland. The economic figures give respite to raise another half percentage point hike at next month’s meeting.
US data was hotter in January with employers adding more than half a million jobs. The consumer price index rose above economists’ expectations and weekly jobless claims fell.
According to trading in the US financial markets, bets on an interest rate hike rose to 5.2% in July. It is noteworthy that the interest rate in the United States is now between the range of 4.5% to 4.75%.
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The euro against the US dollar
The euro fell towards $1.0650 and remains vulnerable to further decline, and breaking the 1.0630 level will increase the selling pressure on the pair towards 1.0480.
1.0720 levels remain resistance, and above these levels it may restore stability to the currency pair.
British pound against the dollar
It declined for the third consecutive trading session, and the support level at 1.1930, the technical level of the 200-day average, remains a major support.
A break below 1.1930 could push GBPUSD to test 1.1850.
The sale was made in the WhatsApp group from the levels of 1.2100 and 1.2050 in two stages.
It declined for the third consecutive trading session, below the technical level of the 50-day average at 0.6890, which is a negative sign. With the formation of the head and shoulders pattern mentioned in previous analysis. It is still subject to further decline towards $0.6600, completing the head and shoulders formation.
We were sold from the level of 0.6900 In the WhatsApp group here
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Spot gold price Click here for more daily recommendations
It is trading near the $1827 support, with expectations of a further decline towards $1800. Where it was mentioned to sell from the level of 1855 dollars in Previous analysis see here
