EUR/USD closed up 0.18% on Thursday, 11th August 2022, at 1.0317. The risk of economic contraction continues and the euro is under pressure due to political instability in Italy. This winter, with inflation peaking, the eurozone will likely see a ...
1. Forex Market Insight
EUR was down 0.26% at $1.0157, having earlier hit a fresh 20-year low of $1.01445.
If Europe and the U.S. slide into recession in the third quarter while the Fed is still raising interest rates, the euro will likely plummet further.
(EUR/USD 1-hour chart)
We focus on the 1.0184-line today. If EUR runs steadily below the 1.0184-line, then pay attention to the support strength of the two positions of 1.0017 and 0.9924. If the strength of EUR breaks above the 1.0184-line, then pay attention to the suppression strength of the two positions of 1.0357 and 1.0529.
GBP Intraday Trend Analysis
Markets are weighing the risk of a recession and whether interest rate hikes will be suspended as global demand weakens.
GBP held on to gains after Johnson said he would resign as UK prime minister.
(GBP/USD 1-hour chart)
GBP is mainly focused on the 1.1916-line today. If GBP runs below the 1.1916-line, it will pay attention to the suppression strength of the two positions of 1.1853 and 1.1795. If GBP runs above the 1.1916-line, then pay attention to the suppression strength of the two positions of 1.2056 and 1.2106.
2. Precious Metals Market Insight
Gold has fallen more than $300 since the Federal Reserve began raising interest rates in March to curb disorderly inflation, increasing the opportunity cost of holding non-yielding gold.
The next catalyst for the market is likely to come today, when the U.S. government will release its labor market report.
Earlier data showed that the number of U.S. initial jobless claims unexpectedly increased last week.
Layoffs surged to the most in 16 months in June amid growing signs that demand for labor is cooling.
(Gold 1-hour chart)
Gold pays attention to the 1740-line today. If the gold price runs steadily below the 1740-line, then it will pay attention to the support strength of the 1722 and 1701 positions. If the gold price breaks above the 1740-line, then pay attention to the suppression strength of the two positions of the 1760 and 1783.
3. Commodities Market Insight
WTI Crude Oil
Oil prices settled sharply higher on Thursday, 7th July 2022, rebounding from sharp losses in the previous two sessions.
As despite lingering concerns about a potential global recession, investors are refocusing their attention on tightening supply.
(Crude oil 1-hour chart)
Oil prices focus on the 102.52-line today. If the oil price runs above the 102.52-line, then focus on the suppression strength of the two positions of 105.01 and 107.52. If the oil price runs below the 102.52-line, then pay attention to the support strength of the two positions of 99.50 and 97.33.
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