From export bans to price controls, governments in Asia are taking a much more targeted approach than their Western counterparts in curbing global inflationary pressure, a strategy that appears to be working at least for now.
1. Forex Market Insight
The euro fell by 0.22% to 1.1259 against the dollar, with news of a visit by the U.S. officials to Russia over Ukraine causing the euro to expand its losses. Meanwhile, corporate and fixing-related selling also put pressure on the euro.
(EUR/USD 1-hour chart)
Today, pay attention to the 1.1267-line of support. If the euro runs stably above the 1.1267-line, focus on the strength of the euro’s rebound. At that time, pay attention to the suppression at the top 1.1315 and 1.1357 positions. If the euro’s strength drops below the 1.1267-line, then pay attention to the support strength in two positions of 1.1250 and 1.1198.
GBP Intraday Trend Analysis
The pound rose by 0.11% to 1.3231 against the dollar after the U.K. released a strong jobs report and government spokesman Max Blain said there were no plans to further tighten vaccination restrictions.
(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, 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 sharply yesterday as the market expects the Fed to accelerate the pace of monetary policy tightening, but the decline of the U.S. stocks and the spread of the pandemic are expected to bring some support to gold prices.
The focus during the day will be on the Fed’s interest rate resolution and the “scary data” of retail sales. Retail sales are expected to decline, which is negative for the dollar and bullish for gold prices.
(Gold 1-hour chart)
Gold pays attention to the 1766-line today. If the price of gold runs above the 1766-line, then pay attention to the suppression of the 1778 and 1793 positions. If the gold price drops below the 1766-line again, it will open up a further downside space. At that time, pay attention to the support strength in two positions at 1760 and 1751.
3. Commodities Market Insight
WTI Crude Oil
Oil prices fell yesterday as the International Energy Agency (IEA) said the global oil market has returned to more supply than demand, and some other countries tightened restrictions to curb the spread of the mutated strain of Omicron.
Intraday focus on the U.S. November monthly retail sales rate, EIA data and on Thursday at 3:00 the Federal Reserve will announce the interest rate resolution.
(Crude oil 1-hour chart)
Today, oil prices are still paying attention to the 71.13-line. If the oil price runs below the 71.13-line, keep the trend of bearish thinking, then pay attention to the support at 68.57 and 66.33 in turn. If the oil price breaks through 71.13, it will open up a further upside. At that time, focus on the suppression of the 72.77 and 73.52 positions.
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