1. Forex Market Insight
The dollar hit its highest in nearly 16 months against the euro yesterday after the U.S. posted its highest inflation reading in 30 years, sparking bets that the Federal Reserve will tighten the monetary policy sooner than expected.
Data released on Wednesday, 10th November 2021, showed that the U.S. consumer price index (CPI) rose the most since 1990 in October, fueling speculation that the Fed will raise interest rates sooner than expected, with traders questioning the Fed’s stance that the current high inflation is “temporary”. The dollar index is set to rise for a second straight session, rising to 95.19 at one point during the session, the highest since July 22, 2020.
(EUR/USD 1-hour chart)
Today, pay attention to the 1.1535-line. If the euro runs steadily below the 1.1535-line, maintain the bearish trend, and pay attention to the support of the 1.1401-line below. If the strength of the euro breaks through the 1.1535-line, it will open up a further upside space. At that time, pay attention to the two positions of suppression strength at 1.1583 and 1.1622.
GBP Intraday Trend Analysis
The pound fell by 0.25% against the dollar at 1.3372 after hitting its lowest since December 2020 at 1.3359. Uncertainty around the Bank of England’s policy outlook and heightened Brexit-related risks weighed on the pound, with data showing that the U.K. economy lagged behind rivals in the July-September period.
(GBP/USD 1-hour chart)
The pound today is mainly focused on the 1.3522-line. If the pound runs below the 1.3522-line, then pay attention to the support at the 1.3302 and 1.3186 positions in turn. If the pound breaks through the 1.3522-line, then pay attention to the suppression at the 1.3574 and 1.3669 positions.
2. Precious Metals Market Insight
Yesterday, gold prices welcomed a six consecutive rise, after strong U.S. Consumer Price Index (CPI) data pushed investors scrambling to buy gold, which is seen as a hedge against inflation.
The fading popularity of the stock market also supported gold prices, but a stronger dollar dragged down gold price gains. The main focus during the day is the University of Michigan consumer confidence index and job openings data. In addition, attention should also be paid to the New York Fed President Williams’ speech.
(Gold 1-hour chart)
Gold pays attention to the 1869-line today. If the price of gold runs stably below the 1869-line, then pay attention to the support of the 1844 and 1831 positions. If the price of gold breaks the 1869-line, it will open up a further upside space. At that time, pay attention to the suppressive strength of each position at 1880 and 1887.
3. Commodities Market Insight
WTI Crude Oil
Oil prices fluctuated sharply yesterday, reaching an intraday low of $80.20 per barrel, dragged down by OPEC’s downgraded demand expectations. However, it rebounded from an intraday low of $80.20 per barrel as the market believes demand will strengthen further in the coming months following the outbreak. Meanwhile, investors weigh the possibility of White House intervention in the market to calm energy prices.
(Crude oil 1-hour chart)
Today, oil prices are paying attention to the 78.92-line. If oil prices run above the 78.92-line, they will focus on the suppression of the 81.07 and 82.83 positions in turn. If the oil price drops below 78.92, it will open up further downward space. At that time, focus on the 76.89-line of support.
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