The US dollar index is currently hovering around the 106.50 mark, with traders diligently scrutinizing the recent data on the US GDP for the third quarter, coupled with the latest figures on durable goods orders from the country. Impressively, the US economy witnessed a 4.9% expansion, propelled significantly by a robust 4% surge in consumer spending. The figures for durable goods orders were also promising, registering a 4.7% uptick as opposed to the anticipated 1.5%.
Such encouraging numbers point towards a heightened possibility of the US maintaining its stringent monetary policy, a factor that has invigorated the rally in US Treasuries. The financial realm is now keenly awaiting the release of personal income data today, with forecasts suggesting that these numbers will surpass expectations, further consolidating the dollar's dominance.
Trade Suggestion: BUY STOP at 106.50 with a target price (TP) of 107.00 and a stop loss (SL) at 106.30.
On the European front, the EUR/USD pair is navigating the waters at 1.0560. The financial community is closely observing the aftermath of the European Central Bank (ECB) meeting. The bank opted for stability, keeping interest rates unaltered with the key rate at 4.50% and the deposit rate at 4%. An official communique highlighted concerns about prolonged elevated inflation levels in the eurozone. However, the silver lining is the recent data hinting at a moderation in consumer prices; projections for this year are at 5.6%, with next year's pegged at 3.2%. In her interaction with the media, ECB chief Christine Lagarde reaffirmed the fragility of the European economic landscape. Taking all these factors into consideration, a further descent in the euro seems plausible.
Trade Suggestion: SELL STOP at 1.0540 with a target price (TP) of 1.0450 and a stop loss (SL) at 1.0570.
Shifting focus to the energy sector, Brent Crude remains stable, priced at $88 per barrel. Recent statistics from the Energy Information Administration, which documented a rise of 1.371 million barrels in oil reserves, have exerted a downward force on oil prices. Nevertheless, the pendulum could swiftly swing towards a bullish trend, fueled by potential escalations in the Middle East conflict and robust US GDP figures amplifying prospects of heightened oil demand from the globe's premier economy. Additionally, OPEC+'s decisive actions to curtail oil output have lent a supportive hand to oil prices. Given this context, maintaining a bullish stance on oil seems prudent.
Trade Suggestion: BUY STOP at 88.50 with a target price (TP) of 91.00 and a stop loss (SL) at 87.80.
