1. Forex Market Insight
The plan of the European Central Bank (ECB) to open interest rate hikes after July reflects their slow response to tightening monetary policy.
At the same time, the crisis in Ukraine has exposed energy, refugees and food crises as obstacles to economic recovery.
Therefore, the short-term rebound space for the euro is limited.
(EUR/USD 1-hour chart)
We focus on the 1.0529-line today. If EUR runs steadily below the 1.0529-line, then pay attention to the support strength of the two positions of 1.0357 and 1.0184. If the strength of EUR breaks above the 1.0529-line, then pay attention to the suppression strength of the two positions of 1.0642 and 1.0697.
GBP Intraday Trend Analysis
GBP/USD fluctuated and fell last week, as a result of strong dollar and pressure put on by the U.K. political crisis.
But expectations of a rate hike by the Bank of England next week could help limit the pound’s decline.
Despite the unstable economic situation, the market expects the Bank of England to continue tightening policy, announcing a 25 basis point rate hike at its monetary policy meeting on 16th June 2022.
Additionally, some analysts expect that the Bank of England benchmark interest rate increase to 1% will stop raising interest rates, as market participants remain concerned about the outlook for the British economy.
Inflationary fever exacerbates the risk of stagflation.
(GBP/USD 1-hour chart)
GBP is mainly focused on the 1.2301-line today. If GBP runs below the 1.2301-line, it will pay attention to the suppression strength of the two positions of 1.2106 and 1.2005. If GBP runs above the 1.2301-line, then pay attention to the suppression strength of the two positions of 1.2478 and 1.2668.
2. Precious Metals Market Insight
The gold market is under pressure again.
It is currently below $1,850 an ounce and trading near $1,823.
As rising Fed rate hike expectations push the dollar index to a 20-year high, Bond yields rose to 11-year high.
(Gold 1-hour chart)
Gold pays attention to the 1832-line today. If the gold price runs steadily above the 1832-line, then it will pay attention to the support strength of the 1880 and 1892 positions. If the gold price breaks below the 1832-line, then pay attention to the suppression strength of the two positions of the 1820 and 1807.
3. Commodities Market Insight
WTI Crude Oil
Russia’s main pipeline gas deliveries to Europe remain stable and 20-year cooperation agreements were signed over the weekend between Iran and Venezuela.
Involving the energy field, helping the bears,
Oil prices hovering below the $120 again.
(Crude Oil 1-hour chart)
Oil prices focus on the 116.30-line today. If the oil price runs above the 116.30-line, then focus on the suppression strength of the two positions of 120.06 and 127.10. If the oil price runs below the 116.30-line, then pay attention to the support strength of the two positions of 113.10 and 109.62.
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