EURUSD BULLISH MOMENTUM ACCELERATES AFTER STRONG EU INFLATION DATA

The EURUSD pair jumped sharply after the latest economic data from the Eurozone. According to Eurostat, consumer prices jumped by a record 5.1% in January this year as energy prices rose. Oil and gas prices rose because of the ongoing concerns about Russia’s relations with the United States and other western countries. Higher energy and food prices were offset by a small increase in manufactured goods prices. Therefore, the pair rallied as investors price in a more hawkish ECB when it completes its meeting tomorrow.

American futures tilted higher on Tuesday as investors cheered the strong quarterly results by Alphabet. In its quarterly report, the company said that its revenue rose to more than $75.3 billion in the fourth quarter. Its revenue also jumped to a record high. Most of this growth came from its core search business whose revenue rose by 36% to $43.3 billion. Its stock jumped by 9% in the premarket session, putting its market cap close to $2 trillion. Meanwhile, PayPal’s earnings were disappointing, which pushed its stock lower by more than 15%. Other global companies that published strong results were Santander and Vodafone.

The price of crude oil moved sideways as investors waited for the latest meeting by OPEC+. According to Reuters, analysts expect that the cartel will announce an extension to its current policy. In it, the cartel is increasing production gradually by about 400k barrels per month. In a statement, analysts at Goldman Sachs said that the current price will likely push the cartel to ramp-up faster in the coming months. Later today, oil prices will react to the latest American inventories data.

XBRUSD

The XBRUSD pair moved sideways ahead of the outcome of the OPEC+ meeting. The pair is trading at 88.75, which is slightly below last month’s high of 90. It is along the 25-day moving average on the four-hour chart. Also, the Average True Range (ATR) has declined in a sign that volatility has declined. Therefore, there is a likelihood that the pair will have a bullish breakout later today.

EURUSD

The EURUSD pair jumped sharply after the strong Eurozone inflation data. It is trading at 1.1323, which is significantly higher than last month’s low of 1.1120. On the four-hour chart, it has moved above the 50% Fibonacci retracement level. It has also risen above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has been rising. Therefore, there are signs that this recovery is getting overdone, meaning that the price will likely have a pullback.

GBPUSD

The GBPUSD pair continued its bullish trend in the past few days. The pair is trading at 1.3567, which was the highest level since January 21. On the four-hour chart, the pair moved above the ascending channel shown in red. It has moved above the 25-day moving average and the 38.2% Fibonacci retracement level. Therefore, the pair will likely keep rising ahead of the BOE decision.