1. Forex Market Insight
The euro has been the chief beneficiary of the dollar’s decline, but that momentum has also stalled.
Expectations of a rate hike by the European Central Bank (ECB) have been largely reflected in the current exchange rate.
EUR/USD rose 0.07% to $1.0730 on Friday, 27th Friday 2022. It hit a one-month high earlier in the day.
EUR/USD rose 1.62% last week, the best weekly performance in nearly four months.
If the market expects the Fed to continue raising interest rates after September, then EUR may struggle to rise further.
(EUR/USD 1-hour chart)
We focus on the 1.0776-line today. If EUR runs steadily above the 1.0776-line, then pay attention to the support strength of the two positions of 1.0832 and 1.0890. If the strength of EUR breaks below the 1.0776-line, then pay attention to the suppression strength of the two positions of 1.0697 and 1.0662.
GBP Intraday Trend Analysis
Recently, structural concerns such as an increase in the fiscal deficit, or the potential negative impact of windfall taxes on FDI, may offset the cyclical boost to GBP.
GBP/USD rose slightly, but USD is essentially flat.
In fact, there were few exceptional movements in the main exchange rates of the pound.
Money markets showed that market expectations for UK interest rates in a year’s time were actually slightly lower than before the statement was released.
(GBP/USD 1-hour chart)
GBP is mainly focused on the 1.2668-line today. If GBP runs below the 1.2668-line, it will pay attention to the suppression strength of the two positions of 1.2478 and 1.2301. If GBP runs above the 1.2668-line, then pay attention to the suppression strength of the two positions of 1.2807 and 1.2872.
2. Precious Metals Market Insight
Spot gold climbed slightly on Friday, 27th May 2022, closing at $1853.53 an ounce.
And weekly gains for the second week in a row, helped by a retreat in the dollar and U.S. bond yields.
Meanwhile, concerns about aggressive Fed policy tightening have subsided.
(Gold 1-hour chart)
Gold pays attention to the 1866-line today. If the gold price runs steadily below the 1866-line, then it will pay attention to the support strength of the 1847 and 1832 positions. If the gold price breaks above the 1866-line, then pay attention to the suppression strength of the two positions of the 1880 and 1892.
3. Commodities Market Insight
WTI Crude Oil
Oil prices rose on Friday, 27th May 2022.
It closed higher ahead of the Memorial Day long weekend, the start of the peak demand season in U.S.
At the same time, European countries opened negotiations on whether to impose a total ban on imports of Russian crude oil.
Brent oil rose more than 5%, and U.S. oil rose more than 4% this week.
(Crude Oil 1-hour chart)
Oil prices focus on the 111.95-line today. If the oil price runs below the 111.95-line, then focus on the suppression strength of the two positions of 116.30 and 120.00. If the oil price runs above the 111.95-line, then pay attention to the support strength of the two positions of 109.62 and 107.52.
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