WORLDWIDE: HEADLINES Biden says can ‘tweak’ inflation act to include European countries U.S. President Joe Biden said that new laws that give incentives for domestic production of computer chips and renewable energy parts were n ...
1. Forex Market Insight
Eurozone inflation hit a record high in November and far exceeded the target. However, the European Central Bank remained indifferent, and still believes that the surge in inflation is temporary and may have peaked.
At the same time, Central bank policymakers are also considering postponing a decision on future bond purchase plans. Through this, the euro was under pressure, closing down by 0.14% to 1.1306 against the dollar.
(EUR/USD 1-hour chart)
Today, we still pay attention to the 1.1250-line. If the euro runs steadily above the 1.1250-line, we will see the continuity of the euro’s rebound strength. At that time, we will pay attention to the suppression of the upper 1.1338 and 1.1378 positions. If the euro strength drops below the 1.1250-line, then we will pay attention to the support strength of the two positions at 1.1198 and 1.1183.
GBP Intraday Trend Analysis
The pound closed lower against the dollar for the second week in a row, down by 0.87%, and set a new low since late December last year to 1.3194. The Omicron variant has led to a decline in the Bank of England’s expected interest rate hike this month.
With the Fed likely to accelerate monetary policy tightening, the strong dollar could be a driver of the pound’s movement ahead of the Bank of England’s Dec. 16 interest rate decision.
(GBP/USD 1-hour chart)
The pound is still mainly focused on the 1.3409-line today. If the pound runs below the 1.3409-line, pay attention to the support of the 1.3186-line. If the pound strength rises above the 1.3409-line, then pay attention to the suppression at the 1.3450 and 1.3522 positions.
2. Precious Metals Market Insight
Gold prices rebounded sharply from a one-month low on Friday, 3rd December 2021, as November’s non-farm payrolls data fell sharply short of expectations and omicron continued to stoke market apprehension.
However, the Fed’s plan to accelerate cuts is expected to remain unchanged, which exerts continued pressure on gold prices.
This week, focus on Friday’s U.S. CPI data. In addition, the Australian Federal Reserve and the Bank of Canada will announce interest rate resolutions one after another this week.
(Gold 1-hour chart)
Gold still maintains the bearish trend today. Therefore, today we still pay attention to the line of 1782. If the price of gold runs stably below the line of 1782, then pay attention to the support of the two positions of 1760 and 1751. If the price of gold rebounds to above the line of 1782, then it will open up further room for rebound. At that time, pay attention to the suppression of the 1800 and 1810 positions.
3. Commodities Market Insight
WTI Crude Oil
Although the non-farm payrolls data was disappointing last week, the unemployment rate fell and oil prices were boosted by OPEC+’s policy of possibly re-evaluating production increases in the near term if a growing pandemic lockdown curbs demand, it said on Saturday. With light data during the day, keep an eye out for news related to the pandemic and the geopolitical situation in the Middle East.
(Crude oil 1-hour chart)
Today, oil prices are paying attention to the 64.01-line. If the oil price runs above the 64.01-line, then pay attention to the suppression of the 68.57 and 69.75 positions in turn. If the oil price drops below 64.01, it will open up further downside space. At that time, pay attention to the strength of support at 61.72 and 60.77 positions.
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