1. Forex Market Insight
EUR/USD
The euro closed down 0.05% against the dollar at 0.9873 on Tuesday, 1st November 2022.
Data released on Monday, 31st October 2022 showed that global inflation remains stubbornly high, with the eurozone recording the highest increase record in October. According to the latest data, the Eurozone’s October reconciled CPI rose 10.7% year-on-year, compared with an expected 10.3% and a previous value of 10%, a new high.
Eurozone GDP rose 2.1% year-on-year in the third quarter, in line with expectations, but well below the 4.1% growth rate in the second quarter. Eurozone October reconciled CPI rose 1.5% YoY, expected 1.2%, previous 1.2%. Eurozone GDP rose 0.2% quarter-over-quarter in the third quarter, compared with 0.1% expected and 0.8% previously.
As the energy crisis continues to ravage businesses and households, it is widely expected that the EU economic expansion will reverse in the winter. The outlook for the EU economy remains highly uncertain.
Mild weather and better-than-expected natural gas supplies have led to some significant declines in wholesale energy costs, but future supply issues and the Russia-Ukraine war still pose risks.
Technical Analysis：
(EUR/USD 1-hour Chart)
We focus on the 0.9852 line today. If the EUR runs below the 0.9852 line, then pay attention to the support strength of the two positions of 0.9810 and 0.9764. If the strength of EUR rises over the 0.9852 line, then pay attention to the suppression strength of the two positions of 0.9909 and 0.9999.
GBP Intraday Trend Analysis
Fundamental Analysis：
The Bank of England is also meeting this week and is expected to raise rates by 75 basis points as well. The market expects the BoE to then slow down and raise rates by 50 basis points in December. The pound had fallen more than 1% against the dollar on Monday, 31st October 2022 and rebounded on Tuesday, 1st November 2022 closing up 0.15% at 1.1478.
Technical Analysis：
(GBP/USD 1-hour Chart)
GBP is mainly focused on the 1.1501-line today. If GBP runs below the 1.1501-line, it will pay attention to the suppression strength of the two positions of 1.1396 and 1.1273. If GBP runs above the 1.1501 -line, then pay attention to the suppression strength of the two positions of 1.1607 and 1.1756.
2. Precious Metals Market Insight
Gold
Fundamental Analysis:
Gold rose more than 1% on Tuesday, 1st November 2022 as the dollar and U.S. bond yields slipped from session highs and the focus turned to a key Federal Reserve decision to see if the Fed would soften, or maintain, its aggressive stance on rate hikes.
Benchmark 10-year Treasury yields retreated on speculation that the Federal Reserve may signal a slowdown in the pace of policy tightening this week, even as it is expected to raise interest rates by another 75 basis points. Due to the Fed’s rapid rate hike, gold prices have fallen about 21% since rising through the $2,000 per ounce level in March.
Technical Analysis：
(Gold 1-hour Chart)
Gold pays attention to the 1642-line today. If the gold price runs below the 1642-line, then it will pay attention to the support strength of the 1627 and 1616 positions. If the gold price breaks above the 1642-line, then pay attention to the suppression strength of the two positions of the 1653 and 1661.
3. Commodities Market Insight
WTI Crude Oil
Fundamental Analysis:
Oil prices rose more than 2.7% on Tuesday, 1st November 2022 recovering losses from the previous session on optimism about demand; both Brent and U.S. crude posted monthly gains in October for the first time since May after the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+, a group of allies including Russia, cut their target production by 2 million barrels per day.
Technical Analysis：
(Crude Oil 1-hour Chart)
Oil prices focus on the 89.25 line today. If the oil price runs above the 89.25-line, then focus on the suppression strength of the two positions of 90.44 and 91.54. If the oil price runs below the 89.25-line, then pay attention to the support strength of the two positions of 86.77 and 85.53.
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.
