1. Forex Market Insight
EUR/USD rose to its highest level since 17th August 2022.
It touched a 20-year-low of $0.9862 last week. EUR ended up 0.7% at $1.0117.
Sources told Reuters that European Central Bank (ECB) policymakers believe there is a growing risk that the central bank will need to raise its key interest rate to 2% or higher to curb record inflation in the euro zone.
(EUR/USD 1-hour chart)
We focus on the 1.0190-line today. If EUR runs steadily below the 1.0190-line, then pay attention to the support strength of the two positions of 1.0116 and 0.9999. If the strength of EUR breaks above the 1.0190-line, then pay attention to the suppression strength of the two positions of 1.0277 and 1.0357.
GBP Intraday Trend Analysis
GBP/USD ended the day at $1.1681, up 0.8% on the day and above the 37-year low touched last week.
According to data released by the UK Statistics Authority, the UK’s inflation rate reached 10.1% in July this year, a record high since February 1982, and is the first country in the G7 where the inflation rate exceeded 10%. In addition, the UK is also facing economic growth pressures.
The Organization for Economic Cooperation and Development (OECD) predicted in June that UK economic growth would stagnate next year.
The Bank of England will have a difficult choice to make between “fighting inflation” and “stabilizing growth”. Two days before the Queen’s death, Britain welcomed a new Prime Minister, Alex Truss, who pursues monetarism and is committed to helping people ease the pressure of the cost of living through tax cuts.
While promising tax cuts, Truss stressed that he would not cut public spending, which means that there is a possibility that the government deficit will widen again.
In the short term, investors are expected to take a more cautious view of UK government bonds and the British pound.
(GBP/USD 1-hour chart)
GBP is mainly focused on the 1.1696-line today. If GBP runs below the 1.1696-line, it will pay attention to the suppression strength of the two positions of 1.1622 and 1.1554. If GBP runs above the 1.1696-line, then pay attention to the suppression strength of the two positions of 1.1733 and 1.1764.
2. Precious Metals Market Insight
Supported by a weaker dollar, gold jumped about 1% on Monday, 12th September 2022, while investors awaited key inflation data for clues on the pace of Federal Reserve rate hikes.
(Gold 1-hour chart)
Gold pays attention to the 1720-line today. If the gold price runs steadily below the 1720-line, then it will pay attention to the support strength of the 1700 and 1693 positions. If the gold price breaks above the 1720-line, then pay attention to the suppression strength of the two positions of the 1735 and 1743.
3. Commodities Market Insight
WTI Crude Oil
Oil prices closed higher on Monday, 12th September 2022, shrugging off weaker demand expectations as supply concerns intensify as winter approaches.
U.S. Strategic Petroleum Reserve stocks fell 8.4 million barrels to 434.1 million barrels in the week ended 9th September 2022, the lowest level since October 1984, according to data released Monday, 12th September 2022, by the U.S. Department of Energy.
(Crude oil 1-hour chart)
Oil prices focus on the 85.72-line today. If the oil price runs above the 85.72-line, then focus on the suppression strength of the two positions of 88.08 and 90.44. If the oil price runs below the 85.72-line, then pay attention to the support strength of the two positions of 84.02 and 82.72.
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