From export bans to price controls, governments in Asia are taking a much more targeted approach than their Western counterparts in curbing global inflationary pressure, a strategy that appears to be working at least for now.
1. Forex Market Insight
The euro-weighted dollar index rose was driven by the euro’s decline. Meanwhile, European Central Bank President Lagarde continued to dampen market bets on tightening.
Lagarde said supply chain bottlenecks and soaring energy costs are slowing eurozone growth and will keep inflation high for longer than previously expected. Lagarde “reiterated the dovish outlook of policymakers”, which has limited the euro.
Through this, the euro fell 0.77% against the dollar to 1.1356, the lowest level since July 2020, and ended the day down 0.67% at 1.1368.
(EUR/USD 1-hour chart)
Today, pay attention to the 1.1501-line. If the euro runs steadily below the 1.1501-line, maintain the bearish trend. Below, pay attention to the support at 1.1357 and 1.1278. If the strength of the euro breaks through the 1.150-line, it will open up a further upside. At that time, focus on the suppression of the two positions at 1.1535 and 1.1583.
GBP Intraday Trend Analysis
The pound was basically flat against the U.S. dollar, ending the day at 1.3416. The euro sold against the pound after the Bank of England policy member’s speech, and U.K. government bond yields moved higher.
There will be a lot of data coming out of the U.K. this week, with employment, inflation and retail sales data expected to provide clues about whether the BoE will raise interest rates in December as the market expects. On Friday, 12th November 2021, the pound touched its lowest level against the dollar this year.
(GBP/USD 1-hour chart)
The pound today is mainly focused on the 1.3522-line. If the pound runs below the 1.3522-line, then pay attention to the support at the 1.3302 and 1.3186 positions in turn. If the pound breaks through the 1.3522-line, pay attention to the suppression at the 1.3574 and 1.3669 positions.
2. Precious Metals Market Insight
The dollar index touched a 16-month high yesterday, 15th November 2021. Driven by global growth, inflation worries and monetary policy expectations, investors await this week’s release of U.S. consumer spending data.
Gold futures closed slightly lower, ending a previous seven-session run of gains, as the dollar and U.S. bond yields climbed, putting pressure on gold prices.
(Gold 1-hour chart)
Gold pays attention to the 1869-line today. If the price of gold runs stably below the 1869-line, then pay attention to the support of the 1844 and 1831 positions. If the price of gold breaks the 1869-line, it will open up a further upside space. At that time, pay attention to the suppressive strength of each position at 1880 and 1887.
3. Commodities Market Insight
WTI Crude Oil
U.S. oil ended yesterday’s trading up by $0.16, or 0.2%, to close at $80.95 per barrel. The Brent oil was flat, closing at $82.11/barrel.
Oil prices ended higher after Biden faced mounting pressure, including from his own party, to release strategic oil reserves to calm rising gasoline prices, but remained nowhere to be seen, raising doubts about whether crude supplies would increase.
(Crude oil 1-hour chart)
Today, oil prices are paying attention to the 78.92-line. If oil prices run above the 78.92-line, they will focus on the suppression of the 81.07 and 82.83 positions in turn. If the oil price drops below 78.92, it will open up further a downward space. At that time, focus on the 76.89-line of support.
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.