1. Forex Market Insight
The euro, as a counterparty to the dollar, tends to move in a negative correlation with the dollar index. With the euro down by nearly 6% in 2021 and the ECB’s rate hike process still seemingly out of reach for now, the euro is widely viewed as bearish in 2022.
The ECB will begin rolling back supportive policy measures during the epidemic in 2022, with the emergency bond purchase program slowing in January and then ending in March.
Meanwhile, regular bond purchase operations will be temporarily expanded and the flexibility to reinvest maturing bonds will reassure investors that financing conditions will not be tightened prematurely.
(EUR/USD 1-hour chart)
Today, we will pay attention to the suppression strength of the 1.1357-line. If the euro runs steadily below the 1.1357-line, we will pay attention to the support strength of the two positions below 1.1338 and 1.1315.
GBP Intraday Trend Analysis
The UK has started 2022 on a positive note, with the UK receiving more of the Covid-19 vaccine than any other Western countries, and the vaccination rates have been way ahead of the curve.
During this interval, the pound has been one of the strongest currencies in 2022. Meanwhile, the Bank of England became the first major central bank to raise interest rates since the epidemic in December as UK inflation figures hit a near 10-year high and the economy steadily recovered.
(GBP/USD 1-hour chart)
The pound is mainly focused on the 1.3574-line today. If the pound runs below the 1.3574-line, it will focus on the support strength of the two positions of 1.3522 and 1.3409. If the pound runs above the 1.3574-line, it will pay attention to the suppression of the 1.3669-line.
2. Precious Metals Market Insight
Gold prices rose by more than 1% yesterday, 11th January 2022, refreshing the high since 5th January 2022 to $1823.31 per ounce. The dollar fell after Fed Chairman Jerome Powell testified before Congress and did not make any unexpected comments on tightening monetary policy, and the U.S. bond yields retreated to provide support.
(Gold 1-hour chart)
Gold is focused on the 1812-line today. If the price of gold runs steadily below the 1812-line, then it will pay attention to the support strength of the two positions of 1793 and 1804. If the gold price breaks above the 1812-line, it will open up further upward space. At that time, pay attention to the suppression of the 1831-line.
3. Commodities Market Insight
WTI Crude Oil
Yesterday, Brent oil rose by $2.78, or 3.44% in late trading, to close at $83.65 per barrel. Expectations that the surge in Covid-19 cases and the spread of the Omicron variant will not derail the global demand recovery supported oil prices higher.
Meanwhile, the dollar fell, boosting the attractiveness of dollar-denominated commodities given that expectations of a Fed rate hike have largely been digested and that the hike will not come before March.
(Crude oil 1-hour chart)
Oil prices focus on the 80-line today. If the oil price runs below the 80-line, then focus on the support at 76.89 and 75.69. If the oil price breaks above the 80-line, then pay attention to the suppression of the 81.07-line.
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