1. Forex Market Insight
EUR/USD fell 0.77% on Wednesday, 1st June 2022, hitting a new one-week low of 1.0626, extending Tuesday’s rally.
According to data released on Wednesday, 1st June 2022, U.S. manufacturing activity picked up in May.
Demand for commodities remains strong, which could ease fears of an imminent recession.
Additionally, the numbers of job openings in the U.S. declined in April, but remained at a very high level.
The favorable U.S. data put more pressure on EUR, which has been in a downward trend since Tuesday’s, 31st May 2022, release of inflation data, which hit a record high in the euro zone.
(EUR/USD 1-hour chart)
We focus on the 1.0697-line today. If EUR runs steadily above the 1.0697-line, then pay attention to the support strength of the two positions of 1.0734 and 1.0776. If the strength of EUR breaks below the 1.0697-line, then pay attention to the suppression strength of the two positions of 1.0662 and 1.0529.
GBP Intraday Trend Analysis
GBP fell about 0.9% on Wednesday, 1st June 2022, as investors worried about the deteriorating growth outlook for the United Kingdom.
A previous survey showed that U.K. manufacturing activity in May expanded at its slowest pace since January 2021.
(GBP/USD 1-hour chart)
GBP is mainly focused on the 1.2478-line today. If GBP runs below the 1.2478-line, it will pay attention to the suppression strength of the two positions of 1.2301 and 1.2243. If GBP runs above the 1.2478-line, then pay attention to the suppression strength of the two positions of 1.2668 and 1.2807.
2. Precious Metals Market Insight
Gold prices recovered from a two-week low yesterday, 1st June 2022.
Spot gold hit a high of $1,849.88 an ounce and closed at $1,846.20 an ounce, having hit a low of $1,827.80 earlier in the session, the lowest since 19th May 2022.
Investors turned their attention to safe-haven gold amid fears of rising inflation, mainly driven by higher fuel prices.
But a stronger dollar and rising U.S. Treasury yields limited gains.
U.S. gold futures settled 0.02% higher at $1,848.7 an ounce.
(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 1847 and 1871 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
Oil prices settled slightly higher on Wednesday, 1st June 2022.
This comes after EU leaders agreed to a phased ban on Russian oil imports and the end of the New Crown outbreak closure in Shanghai, Asia, which could boost already tight market demand.
Crude oil contracts have been steadily moving higher for several weeks due to reduced Russian exports as a result of EU and U.S. sanctions and limited purchases of Russian crude by India and China.
Russia is the world’s largest exporter of crude oil and fuel.
Brent crude futures settled at $116.29 a barrel, up $0.69, or 0.6%
U.S. crude futures settled at $115.26 a barrel, up 59 cents, or 0.5%.
(Crude Oil 1-hour chart)
Oil prices focus on the 111.95-line today. If the oil price runs above the 111.95-line, then focus on the suppression strength of the two positions of 116.30 and 120.00. If the oil price runs below the 111.95-line, then pay attention to the support strength of the two positions of 109.62 and 107.52.
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