1. Forex Market Insight
EUR/USD
Data released by Eurostat on Tuesday, 30th November 2021, showed that due to soaring energy costs, the Eurozone inflation rate soared to a record high in November, which may have reached a peak, but will then slowly decline.
The inflation rate will remain high for most of the next year. Adding to this, the Eurozone inflation accelerated to 4.9 percent in November, the highest level in the 25 years since this data began to be compiled, up from 4.1 percent in October and well above the market estimate of 4.5 percent.
Energy prices rose by 27% year-on-year due to soaring oil prices, but both services and non-energy industrial goods, which have been a drag on price growth over the past few years, rose by more than 2%, indicating a rapid rise in underlying price pressures.
Although inflation is now more than twice the ECB’s 2% target, it is unlikely to trigger any policy action. The ECB has long argued that the surge in inflation is temporary, caused by a series of one-off factors, and will subside over time. Therefore, if policy action is taken now, it will instead hinder economic growth when inflation eases on its own.
Technical Analysis：
(EUR/USD 1-hour chart)
Execution Insight:
Today, pay attention to the 1.1250-line. If the euro runs steadily above the 1.1250-line, we will see the continuity of the euro’s rebound strength. At that time, we will pay attention to the suppression of the top 1.1338 and 1.1378 positions. If the euro strength drops below the 1.1250-line, then we will pay attention to the support strength in two positions of 1.1223 and 1.1183.
GBP Intraday Trend Analysis
Fundamental Analysis：
The continued uncertainty associated with the Brexit has further contributed to the pound’s underperformance relative to European currencies and continued to put pressure on the pound.
The impasse between the UK and the EU over the Northern Ireland Protocol and the worsening spat between the UK and France over post-Brexit fishing rights continued to weigh negatively on the pound.
Technical Analysis：
(GBP/USD 1-hour chart)
Execution Insight:
The pound is still mainly focused on the 1.3409-line today. If the pound runs below the 1.3409-line, pay attention to the 1.3186-line of support. If the pound rebounds to above the 1.3409-line, then pay attention to the suppression at the 1.3450 and 1.3522 positions.
2. Precious Metals Market Insight
Gold
Fundamental Analysis:
Yesterday, gold prices surged sharply and then fell back, recording a slight decline, mainly because Fed Chairman Powell said he would accelerate the tapering of bond purchases, causing the market to panic and sell off.
However, the weaker dollar and high inflation in the U.S. and Europe contributed some support for gold prices. The focus during the day will be on the U.S. November ADP employment and ISM manufacturing PMI. In addition, the Federal Reserve will also publish the Beige Book of the economic conditions.
Technical Analysis：
(Gold 1-hour chart)
Trading Strategies:
Gold today is focused on the sustainability and downward strength of its downside after its break. Therefore, it still pays attention to the 1782-line today. If the price of gold runs stably below 1782, then it will pay attention to the support of the two positions of 1768 and 1751. If the price of gold rebounds again above the 1782 line, it will open up further room for rebound. At that time, we will pay attention to the suppression of the two positions of 1800 and 1810.
3. Commodities Market Insight
WTI Crude Oil
Fundamental Analysis:
Today, early in the Asian market, U.S. crude oil edged up, with the early release of API data showing a decline in inventories boosting oil prices, now at $66.93/barrel. Oil prices fell below the 70-mark on Tuesday, down more than 4% to a two-month low of $64.43/barrel; as the Modena executive raised questions about the effectiveness of the Covid-19 vaccine against the new variant of Omicron, sparking panic in financial markets and increasing concerns about oil demand.
The Federal Reserve is considering accelerating the process of “tapering” large-scale bond purchases, which has also added some pressure to oil prices. Intraday focus on the U.S. November ADP employment figures, EIA data, the economic outlook published by the OECD, OPEC meeting and the Federal Reserve release of the Beige Book of economic conditions on Thursday at 3:00.
Technical Analysis：
(Crude oil 1-hour chart)
Trading Strategies:
Oil prices are likely to have a technical rebound today. At that time, pay attention to the 65.16-line. If oil prices run above the 65.16-line, pay attention to the suppression at 66.83 and 69.75 in turn. If the oil price drops below 65.16, it will open up further downside space. At that time, pay attention to 63.35 first-line support.
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.
