1. Forex Market Insight
The euro rose by 0.24% against the dollar to 1.1314, hitting an intraday high of 1.3146. During this interval, members of the ECB’s Governing Council made hawkish remarks: if the inflation outlook heats up, the ECB will undoubtedly act.
(EUR/USD 1-hour chart)
Today, pay attention to the suppression of the 1.1338-line. If the euro runs stably below the 1.1338-line, then pay attention to the support at the lower 1.1267 and 1.1250 positions. If the euro breaks through the 1.1338-line, then pay attention to the suppression at the 1.1357 and 1.1378 positions.
GBP Intraday Trend Analysis
The pound ended the day at 1.3557 against the dollar, up by 0.20%, hitting a fresh two-month high of 1.3599 during the session, the highest since 9th November 2021, as market expectations is high towards the Bank of England raising interest rates as early as next month.
(GBP/USD 1-hour chart)
The pound today is mainly focused on the 1.3574-line. If the pound runs below the 1.3574-line, then pay attention to the support at 1.3522 and 1.3450. If the pound runs above the 1.3574-line, then pay attention to the suppression of the 1.3669-line.
2. Precious Metals Market Insight
Yesterday, gold prices surged higher to around 1830 before giving back all of their gains and eventually closing slightly lower.
As U.S. bond yields surged following the release of minutes from the Fed’s last meeting, the records showed that the Fed may need to raise rates sooner than expected to keep inflation in check.
In addition, strong ADP employment data also led the bulls to hesitate. However, the stock market selloff and tensions between Russia and Ukraine supported risk aversion. The main focus during the day will be on the initial claims, challenger layoffs and ISM services PMI.
(Gold 1-hour chart)
Today, gold pays attention to the 1812-line. If the price of gold runs stably below the 1812-line, then pay attention to the support of the 1804 and 1793 positions. If the price of gold breaks through the 1812-line, it will open up a further upward space. At that time, pay attention to the suppression of 1820.
3. Commodities Market Insight
WTI Crude Oil
Oil prices extended its gains yesterday, on 5th January 2022, hitting a high of $78.58 per barrel.
Meanwhile, investors are skeptical about whether OPEC and its allies will succeed in achieving the desired production increase and that the Federal Reserve may raise interest rates sooner than expected. However, gasoline inventories have skyrocketed and concerns about an epidemic have also limited gains in oil prices.
(Crude oil 1-hour chart)
Today, oil prices are paying attention to the 76.89-line. If the oil price runs below the 76.89-line, then it will still pay attention to the support at the 75.04 and 72.77 positions. If the oil price breaks through the 76.89-line, then pay attention to the suppression of the 78.92-line.
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