1. Forex Market Insight
EUR/USD up 0.21%, clawing back some of the previous day’s losses but sitting below parity at $0.9965.
The European Central Bank (ECB) will meet this week, and money markets are betting it will raise rates by an unprecedented 75 basis points.
(EUR/USD 1-hour chart)
We focus on the 0.09999-line today. If EUR runs steadily below the 0.9999-line, then pay attention to the support strength of the two positions of 0.9864 and 0.9810. If the strength of EUR breaks above the 0.9999-line, then pay attention to the suppression strength of the two positions of 0.9999 and 1.0116.
GBP Intraday Trend Analysis
GBP/USD fell 0.24% to $1.1516.
The UK will announce a new prime minister on Monday, 5th September 2022, when the campaign for the leadership of the ruling Conservative Party will come to an end, which could trigger further moves in the pound.
(GBP/USD 1-hour chart)
GBP is mainly focused on the 1.1501-line today. If GBP runs below the 1.1501-line, it will pay attention to the suppression strength of the two positions of 1.1421 and 1.378. If GBP runs above the 1.1501-line, then pay attention to the suppression strength of the two positions of 1.1554 and 1.1622.
2. Precious Metals Market Insight
Gold prices rallied more than 1% on Friday, 2nd September 2022, as the dollar retreated following the release of U.S. jobs data that was largely in line with expectations.
However, gold prices are still poised to fall for a third consecutive week on a weekly basis under pressure from the high interest rate environment.
(Gold 1-hour chart)
Gold pays attention to the 1720-line today. If the gold price runs steadily below the 1720-line, then it will pay attention to the support strength of the 1700 and 1693 positions. If the gold price breaks above the 1720-line, then pay attention to the suppression strength of the two positions of the 1735 and 1743.
3. Commodities Market Insight
WTI Crude Oil
Oil prices rose on Friday, 2nd September 2022, on expectations that the OPEC+ alliance will discuss production cuts at its Sept. 5 meeting, though concerns about a weakening global economy still gripped the market.
This comes a day after both major indicators of crude oil fell 3% to touch two-week lows.
Last week, Brent crude fell 7.9% and U.S. crude fell 6.7%.
OPEC+ will likely keep its production quotas unchanged for October at the meeting on next Monday, 12th September 2022, three OPEC+ sources said.
But some sources have also not ruled out cutting production to support oil prices, which have slumped from sky-high levels set earlier this year.
Iran said it has responded “constructively” to the U.S. proposal aimed at reviving the 2015 nuclear deal. The U.S. gave a less positive assessment.
Finance ministers of the Group of Seven (G7) countries agreed on Friday to set a price ceiling on Russian oil.
The move is aimed at cutting Russian revenues while avoiding a sharp rise in oil prices as the war between Russia and Ukraine continues.
(Crude oil 1-hour chart)
Oil prices focus on the 88.02-line today. If the oil price runs above the 88.02-line, then focus on the suppression strength of the two positions of 90.44 and 91.54. If the oil price runs below the 88.02-line, then pay attention to the support strength of the two positions of 85.72 and 83.74.
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