Daily summary: US stocks rise ahead of key rate decisions

• Major European indices from the Old Continent ended the session slightly higher, with  DAX added a symbolic 0.01%, similar to CAC40, while London's FTSE100 lost 0.17%.

• The Eurozone economy unexpectedly grew 0.1% in Q4 of 2022, the least since the first three months of 2021. 

• Major Wall Street indices erased early losses after publication of wage data from the US, with Dow Jones is trading 0.45% higher, while S&P500 and Nasdaq rose 0.80% and 1.10% respectively. Markets digested a set of mixed quarterly results from top-tier US companies, including McDonalds, Pfizer, Caterpillar, GM and are preparing for tomorrow’s Fed decision. 

• Meanwhile fresh data reinforced expectations that FED will raise rates only by 25 bps on Wednesday. The Bureau of Labor Statistics report pointed to a further slowdown in labor costs, while Chicago PMI and US Conference Board Consumer Confidence index both contracted in January.

• Tomorrow, besides the FED, market attention will focus on the ADP report, which will be a final hint ahead of Friday's NFP report. Meta will release its quarterly results after market close, which may provide additional information regarding health of the US tech sector..

• US government said that Russia has violated the Nuclear Non-Proliferation Treaty by obstructing inspections, according to WSJ

• Chinese President Xi IS expected to visit Kremlin near the anniversary of Ukraine war

• Greenback strengthened at the beginning of today's trade in Europe and the EURUSD pair tested crucial support around 1.0800. However,  sentiment changed before noon and the dollar began to weaken, which allowed the main currency pair to break above the resistance at 1.0860.

• The Swiss franc was the top performer among G10 currencies during today's session, gaining more than 0.7% against the US currency. The USDCHF pair returned below the 0.9200 level, which in theory paves the way towards mid-January lows at 0.9085.

• Precious metals pulled back sharply at the beginning of Tuesday's session amid a stronger dollar. Nevertheless, buyers regained control in the second part of the day. Gold halted declines slightly above support at $1900 and is currently approaching $1930 mark , while silver tested $23 level only to quickly rebound towards $23.70.

• Major cryptocurrencies are trading higher today as buyers attempt to erase yesterday's heavy losses. Ethereum and Bitcoin rose around 2%, while Dogecoin's gains are over 9%.

USDCHF - potential bearish engulfing pattern may be forming on the D1 interval, which usually heralds a downward move. The price also bounced off the upper limit of the downward channel, which additionally supports bearish sentiment. Source: xStation5