1. Forex Market Insight
Recently, European Central Bank (ECB) President Christine Lagarde indicated that the ECB may take key interest rates out of negative territory and may raise interest rates further by the end of September.
EUR strengthened after the ECB hinted that it would become more hawkish.
The Fed’s hawkishness seems to have finally stabilized.
Simultaneously, the European Central Bank brought forward policy tightening expectations, this shift in central bank dynamics limits the dollar’s upside.
(EUR/USD 1-hour chart)
We focus on the 1.0697-line today. If EUR runs steadily above the 1.0697-line, then pay attention to the support strength of the two positions of 1.0734 and 1.0776. If the strength of EUR breaks below the 1.0697-line, then pay attention to the suppression strength of the two positions of 1.0662 and 1.0529.
GBP Intraday Trend Analysis
UK to release economic data for this month.
If the recession slows down or grows, it will undoubtedly further boost the price of GBP in the short term. Furthermore, GBP can get buying support again.
On the contrary, the Bank of England has been less hawkish than the Fed in raising interest rates, which will inevitably hit the pound.
After all, it is quite clear that the Fed will continue to shrink its balance sheet and raise interest rates.
(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 1.2301 and 1.2243. 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
Gold prices pared losses after the release of the Fed meeting minutes, which did not mention a more aggressive pace of interest rate hikes.
Most Fed officials lean to 50 basis points rate hikes in the next couple of meetings.
This will give policymakers the flexibility to “shift gears” later when necessary.
The dollar gave back some of its gains after the minutes, also giving support to gold.
(Gold 1-hour chart)
Gold pays attention to the 1866-line today. If the gold price runs steadily below the 1866-line, then it will pay attention to the support strength of the 1847 and 1832 positions. If the gold price breaks above the 1866-line, then pay attention to the suppression strength of the two positions of the 1880 and 1892.
3. Commodities Market Insight
WTI Crude Oil
Oil prices edged up yesterday, 25th May 2022, helped by tight supply and U.S. refineries boosting processing activity to the highest level since before the start of the new crown pandemic.
But the EU’s proposal to phase out Russian oil has apparently stalled, capping gains in oil prices.
(Crude Oil 1-hour chart)
Oil prices focus on the 109.62-line today. If the oil price runs below the 109.62-line, then focus on the suppression strength of the two positions of 107.52 and 105.52. If the oil price runs above the 109.62-line, then pay attention to the support strength of the two positions of 111.95 and 116.30.
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