1. Forex Market Insight
EUR/USD rose more than 1%, extending the momentum of the rebound after hitting a five-year low last week and further distancing EUR from parity against USD.
EUR strengthened after hawkish comments from Dutch Central Bank governor and European Central Bank governing council member Knott.
Knott said the ECB will not only raise interest rates by 25 basis points in July, but is also prepared to consider a larger rate hike if inflation is higher than expected.
(EUR/USD 1-hour chart)
We focus on the 1.0529-line today. If EUR runs steadily above the 1.0529-line, then pay attention to the support strength of the two positions of 1.0662 and 1.0776. If the strength of EUR breaks below the 1.0529-line, then pay attention to the suppression strength of the two positions of 1.0357 and 1.0184.
GBP Intraday Trend Analysis
GDP took advantage of a weaker dollar to jump 1.4% to its highest level since 5th May 2022.
Previously, strong UK labor market data reinforced expectations that the Bank of England will continue to raise interest rates to fight inflation.
(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 1.2243 and 1.2106. 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
Spot gold edged lower yesterday, 17th May 2022, as strong U.S. retail sales data and expectations of an aggressive rate hike overshadowed support from a retreating dollar.
Rising stock markets in Europe and the U.S. also weighed on gold prices.
(Gold 1-hour chart)
Gold pays attention to the 1830-line today. If the gold price runs steadily below the 1830-line, then it will pay attention to the support strength of the 1812 and 1793 positions. If the gold price breaks above the 1830-line, then pay attention to the suppression strength of the two positions of the 1844 and 1866.
3. Commodities Market Insight
WTI Crude Oil
Oil prices retreated yesterday, 17th May 2022, after setting a new high since 9th March 2022, to 115.56 during the session.
There is news that the United States will ease some restrictions on the Venezuelan government.
Expectations of a possible increase in Venezuelan crude oil supply dragged down oil prices.
(Crude Oil 1-hour chart)
Oil prices focus on the 111.95-line today. If the oil price runs below the 111.95-line, then focus on the suppression strength of the two positions of 107.52 and 105.01. If the oil price runs above the 111.95-line, then pay attention to the support strength of 116.30.
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