1. Forex Market Insight
With French consumer price pressures easing more than expected in December, inflation in the European region may have peaked and optimism has sent the euro higher.
This boosted hopes that the European Central Bank may adopt a less hawkish policy, which would in turn support a stronger economy. The euro ended the session 0.54% higher at $1.0605.
(EUR/USD 1-hour Chart)
We focus on the 1.0642 line today. If the EUR runs below the 1.0642 line, then pay attention to the support strength of the two positions of 1.0440 and 1.0275. If the strength of the EUR rises over the 1.0642 line, then pay attention to the suppression strength of the two positions of 1.0586 and 1.0624.
GBP Intraday Trend Analysis
The first half of 2023 is expected to be a difficult consumer environment in the UK due to economic headwinds on all fronts.
However, the U.K. job market will continue to support the economy and is expected to remain resilient throughout the year, with unemployment reaching 4.5%-5% and the proposed nearly 10% increase in the U.K. minimum wage in 2023 likely to be sufficient for effective real wage growth in the second half of the year.
With demand for goods and services only expected to start improving in the fourth quarter of the year, companies with solid balance sheets, strong management skills, and a strong sense of purpose are more likely to outperform the market.
(GBP/USD 1-hour Chart)
GBP is mainly focused on the 1.2010-line today. If GBP runs below the 1.2010-line, it will pay attention to the suppression strength of the two positions of 1.1941 and 1.1762. If GBP runs above the 1.2010-line, then pay attention to the suppression strength of the two positions of 1.2147 and 1.2311.
2. Precious Metals Market Insight
Gold prices extended gains Wednesday, 4th January 2023 to touch their highest level since mid-June, helped by a pullback in the dollar and U.S. bond yields, as spot gold rose 0.7% to $1,852.64 an ounce, having earlier gained as much as 1.4% to reach its highest price since June 13.
(Gold 1-hour Chart)
Gold pays attention to the 1847-line today. If the gold price runs below the 1847-line, then it will pay attention to the support strength of the 1832 and 1820 positions. If the gold price breaks above the 1847-line, then pay attention to the suppression strength of the two positions of 1866 and 1876.
3. Commodities Market Insight
WTI Crude Oil
Oil prices fell more than $4 a barrel Wednesday, 4th January 2023 with Brent crude suffering its biggest two-day percentage drop since 1991 in the first two trading days of the year, weighed down by demand concerns related to the global economy.
The U.S. Institute for Supply Management (ISM) said U.S. manufacturing contracted further in December, falling for a second straight month to 48.4 from 49.0 in November, the weakest reading since May 2020.
Meanwhile, a Labor Department survey showed job openings fell by 54,000 to 10,458,000 in November, sparking concerns the Federal Reserve will keep interest rates high, citing a tight labor market.
Saudi Arabia, the biggest oil exporter, may cut the selling price of its flagship Arabian Light crude to Asia in February, with prices already set at a 10-month low this month as oversupply concerns continue to cloud the market.
(Crude Oil 1-hour Chart)
Oil prices focus on the 72.77- line today. If the oil price runs above the 72.77 -line, then focus on the suppression strength of the two positions of 75.04 and 76.07. If the oil price runs below the 72.77 -line, then pay attention to the support strength of the two positions of 70.49 and 69.37.
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