1. Forex Market Insight
The Fed will likely discuss accelerating the pace of monetary tightening at next week’s meeting. If the Fed is going to make a major policy adjustment, it will signal it several months in advance.
Therefore, if maximum flexibility in raising rates is desired, the Fed will begin raising rates sooner rather than later, with discussions taking place as soon as next week.
With this, market turbulence is expected to follow, but this volatility could be a buying opportunity. At that point, this will put upward pressure on the euro.
(EUR/USD 1-hour chart)
Today, pay attention to the support strength of 1.1278. If the euro runs stably above the 1.1278-line, then the strength of the euro’s might rebound. At that time, pay attention to the suppression of the two positions at 1.1315 and 1.1357 above. If the strength of the euro breaks below the 1.1278-line, then pay attention to the suppression of the two positions 1.1250 and 1.1198, and especially the first-line suppression of 1.1378.
GBP Intraday Trend Analysis
The pound fell by 0.30% to 1.3204 against the dollar, hitting 1.3163 intraday, the lowest level in nearly a year. After Prime Minister Johnson implemented stricter restrictions in England, requiring people to work from home, wear masks in public places and use vaccine passes to slow the spread of the Omicron variant. Meanwhile, the money markets lowered bets on rate hikes, with expectations of only 6 basis points for the Bank of England to raise rates next week.
(GBP/USD 1-hour chart)
The pound today is mainly focused on the 1.3302-line. If the pound runs below the 1.3302-line, then pay attention to the support at the 1.3186 and 1.3104 positions. If the pound strength rises above the 1.3302-line, then pay attention to the 1.3409-line of suppression.
2. Precious Metals Market Insight
Gold prices fell slightly yesterday as the dollar strengthened and data showed a sharp drop in U.S. initial jobless claims, while investors took note of the upcoming inflation report that could influence the Fed’s monetary strategy.
The focus during the day will be on the U.S. CPI and the University of Michigan Consumer Confidence Index for November. CPI is expected to be significantly higher than the previous value, according to October, if inflation is higher than the expected 6.8%, the support role of gold prices should be stronger, gold prices or sharply higher, if inflation is below 6.8%, gold prices may be in shock.
(Gold 1-hour chart)
Gold still pays attention to the 1784-line today. If the price of gold runs below the 1784-line, then pay attention to the support of the 1775 and 1768 positions. If the gold price rebounds above the 1784-line again, it will open up further room for rebound. At that time, pay attention to the suppressive strength in two positions at 1793 and 1804.
3. Commodities Market Insight
WTI Crude Oil
Oil prices fell by nearly 3% on Thursday, 9th November 2021, as the rapid spread of the Covid-19 variant strain of Omicron renewed market concerns about the possibility of more restrictions, which in turn could hit crude oil demand, dulling optimistic expectations from vaccine efficacy.
Intraday focus on the U.S. November unadjusted CPI index, the preliminary U.S. University of Michigan consumer confidence index for December, and the U.S. all-U.S. drilling total for the week ending Dec. 10 released at 2:00 Saturday.
(Crude oil 1-hour chart)
Oil prices are paying attention to the 73.52-line today. If oil prices run below the 73.52-line, maintain the bearish trend, and pay attention to the support at 69.75 and 68.57 in turn. If the oil price breaks above 73.52, it will open up further upside space. At that time, pay attention to the suppression of the two positions at 75.69 and 76.89.
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