European stock futures pointed to a positive start on Tuesday, attempting a rebound from the previous session as investors shake off inflation fears and Omicron. US inflation is expected to show the largest increase in consumer prices in nearly four decades and might prompt the Federal Reserve to deliver in March its first interest-rate hike since the pre-pandemic era. Last Friday, inflation in the Eurozone hit 5% in December, a new record high. Meanwhile, ECB Philip Lane said the narrative remains unchanged that inflation is expected to fall this year and to stabilise below the 2% target in 2023 and 2024.
All eyes will be over Fed Powell today. If he mentions more concrete plan on rate hike DXY will go higher and EUR/USD will test lower levels. On a technical basis the first resistance on a rise is 1.1354 and first support is 1.1272 Level.
Dax made a short decline on Monday. It is trying to rebound today. First resistance to be tested will be 15.912 and first support is 15.744 Level.