1. Forex Market Insight
According to the inflation data released in Germany and Spain on Monday, 30th May 2022, prices accelerated in May due to soaring energy prices.
Eurozone inflation data will be released on Tuesday, 31st May 2022.
Although inflation data dampened the euro’s rally, the euro was still up 0.4% at $1.0774 on Monday, 30th May 2022.
It had previously touched a monthly high of $1.0786.
(EUR/USD 1-hour chart)
We focus on the 1.0776-line today. If EUR runs steadily above the 1.0776-line, then pay attention to the support strength of the two positions of 1.0832 and 1.0890. If the strength of EUR breaks below the 1.0776-line, then pay attention to the suppression strength of the two positions of 1.0734 and 1.0697.
GBP Intraday Trend Analysis
The UK government is expected to provide more financial support to UK households by the end of the current financial year (until April 2023).
The package introduced last week set a precedent for government support to vulnerable families.
Following the current continued strain on household incomes, a further scheme of between £5 billion and £10 billion is likely to be introduced.
If the risk of continued inflation abates, the UK government is expected to cut VAT in the fourth quarter, as well as implementing permanent tax cuts from April 2023 to stimulate the economy.
(GBP/USD 1-hour chart)
GBP is mainly focused on the 1.2668-line today. If GBP runs below the 1.2668-line, it will pay attention to the suppression strength of the two positions of 1.2478 and 1.2301. If GBP runs above the 1.2668-line, then pay attention to the suppression strength of the two positions of 1.2807 and 1.2872.
2. Precious Metals Market Insight
Gold prices held firm on Monday, 30th May 2022, trading trapped in the 1848-1864 range, driven by the depreciation of the dollar, while the market reduced expectations for further aggressive tightening of monetary policy in the United States.
U.S. gold futures were up 0.04% at $1,858.
The U.S. dollar index touched a more than one-month low, making gold prices a bit lower for markets holding other currencies.
The 10-year U.S. bond yield closed on Friday, 27th May 2022, at a level slightly above a six-week low.
(Gold 1-hour chart)
Gold pays attention to the 1847-line today. If the gold price runs steadily below the 1847-line, then it will pay attention to the support strength of the 1871 and 1880 positions. If the gold price breaks above the 1847-line, then pay attention to the suppression strength of the two positions of the 1832 and 1820.
3. Commodities Market Insight
WTI Crude Oil
As Asia eases coronavirus lockdowns and traders digest expectations that the European Union will eventually agree on a ban on Russian oil imports, brent crude climbed above $120 a barrel on Monday, 30th May 2022, hitting a two-month high of $122.01 a barrel.
(Crude Oil 1-hour chart)
Oil prices focus on the 111.95-line today. If the oil price runs below the 111.95-line, then focus on the suppression strength of the two positions of 116.30 and 120.00. If the oil price runs above the 111.95-line, then pay attention to the support strength of the two positions of 109.62 and 107.52.
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