U.S. Consumer Prices Surge 9.1% In June, Global Benchmark Brent Is Down Sharply - Doo Prime News
Doo Prime News > Analysis > Market Insight > U.S. Consumer Prices Surge 9.1% In June, Global Benchmark Brent Is Down Sharply

1. Forex Market Insight    

EUR/USD  

The European Central Bank (ECB) is expected to raise interest rates by 25 basis points at its 21st July 2022 meeting, which would be the first rate hike since 2011. 

The devaluation of the euro is unlikely to affect the ECB’s interest rate path. 

A spokesman for the central bank said the ECB is monitoring the euro exchange rate. 

This is because it has an impact on inflation, but does not target a particular level. 

Technical Analysis:

(EUR/USD 1-hour chart)  

We focus on the 1.0017-line today. If EUR runs steadily below the 1.0017-line, then pay attention to the support strength of the two positions of 0.9938 and 0.9864. If the strength of EUR breaks above the 1.0017-line, then pay attention to the suppression strength of the two positions of 1.0107 and 1.0184.   

GBP Intraday Trend Analysis   

Fundamental Analysis:

The unexpectedly strong UK GDP data released in the middle of the week.

That prompted Goldman Sachs economists to raise their forecasts for UK economic growth and cut their forecasts for a recession. 

The UK’s GDP grew 0.5% in May, beating expectations of 0.1% growth and showing a return to growth from -0.2% in April, the Office for National Statistics said. 

In the three months to May, the economy grew by 0.4%, beating widespread expectations of 0%. 

Technical Analysis:

(GBP/USD 1-hour chart) 

Execution Insight:   

GBP is mainly focused on the 1.1916-line today. If GBP runs below the 1.1916-line, it will pay attention to the suppression strength of the two positions of 1.1820 and 1.1764. If GBP runs above the 1.1916-line, then pay attention to the suppression strength of the two positions of 1.2005 and 1.2056. 

2. Precious Metals Market Insight   

Gold   

Fundamental Analysis:   

Gold rebounded from nearly one-year lows Wednesday, 13th July 2022, as the dollar retreated after an initial surge, helping it avoid pressure from the prospect of a sharp interest rate hike following a spike in U.S. consumer prices. 

U.S. consumer prices jumped 9.1% year-over-year in June, the largest increase in more than 40 years. 

The American people are having to pay more for gas, food, health care and rent, and have the Fed basically set to raise rates by at least another 75 basis points at the end of July. 

The dollar then pared gains, boosting demand for gold from overseas buyers. 

Technical Analysis:   

(Gold 1-hour chart)   

Trading Strategies:   

Gold pays attention to the 1740-line today. If the gold price runs steadily below the 1740-line, then it will pay attention to the support strength of the 1722 and 1701 positions. If the gold price breaks above the 1740-line, then pay attention to the suppression strength of the two positions of the 1751 and 1760.                                                

3. Commodities Market Insight   

WTI Crude Oil   

Fundamental Analysis:

Oil prices rose slightly on Wednesday, 13th July 2022, despite an increase in U.S. oil inventories and U.S. inflation data supporting another sharp rate hike by the Federal Reserve. 

Brent crude, the global benchmark, has fallen sharply since hitting $139 in March, near a record high set in 2008. 

Investors have been selling oil recently, fearing that aggressive interest rate hikes to stem inflation would slow economic growth and hit oil demand. 

Technical Analysis:   

(Crude oil 1-hour chart)

Trading Strategies:   

Oil prices focus on the 93.57-line today. If the oil price runs above the 93.57-line, then focus on the suppression strength of the two positions of 97.33 and 99.50. If the oil price runs below the 93.57-line, then pay attention to the support strength of the two positions of 90.44 and 88.02.  

Disclaimer    

While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.  

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