1. Forex Market Insight
EUR/USD
The euro rose against the dollar on Wednesday, 1st February 2023, once touching its highest since April 4 at 1.1032, and finally closed 1.18% at 1.0988.
The current level of inflation in the eurozone and expectations are still well above the inflation target of 2% set by the European Central Bank.
The ECB said it will continue to tighten financing conditions and fight inflation at all costs. 2022 July so far, the ECB has raised interest rates four times in a row by a total of 250 basis points to curb inflation.
Technical Analysis：
We focus on the 1.0940 line today. If the EUR runs below the 1.0940 line, then pay attention to the support strength of the two positions of 1.0871 and 1.0835. If the strength of EUR rises over the 1.0940 line, then pay attention to the suppression strength of the two positions of 1.1013 and 1.1055.
GBP Intraday Trend Analysis
Fundamental Analysis：
The pound closed 0.44% against the dollar on Wednesday, 1st February 2023 at 1.2371. Today, the Bank of England will release its interest rate resolution, meeting minutes, and monetary policy report.
With the UK economy still more resilient than expected and the labor market still tight, the BoE may also opt for a deeper 50 basis point rate hike.
Current pricing in the money market shows an 82.36% probability that the Bank of England will raise rates by 50 basis points on Thursday.
However, the outlook for the U.K. economy remains bleak and the pound is under pressure in the medium to long term. on Jan. 31, the IMF in its report lowered the U.K. GDP forecast for 2023 from a growth of 0.3% to a contraction of 0.6%. The UK became the only G7 economy expected to contract in the report.
Technical Analysis：
(GBP/USD 1-hour Chart)
GBP is mainly focused on the 1.2311-line today. If GBP runs below the 1.2311-line, it will pay attention to the suppression strength of the two positions of 1.2222 and 1.2147. If GBP runs above the 1.2311-line, then pay attention to the suppression strength of the two positions of 1.2478 and 1.2668.
2. Precious Metals Market Insight
Gold
Fundamental Analysis:
Spot gold rallied sharply Wednesday, 1st February 2023, after Fed Chairman Jerome Powell’s unexpectedly dovish remarks about inflation blocking caused the dollar to fall and signaled to the market that a peak in interest rates may be near.
Spot gold rose 1.2% to $1,951.43 an ounce, its highest level since mid-April 2022.
Technical Analysis：
(Gold 1-hour Chart)
Gold pays attention to the 1960-line today. If the gold price runs below the 1960-line, then it will pay attention to the support strength of the 1935 and 1918 positions. If the gold price breaks above the 1960-line, then pay attention to the suppression strength of the two positions of 1980 and 1998.
3. Commodities Market Insight
WTI Crude Oil
Fundamental Analysis:
Oil prices closed lower on Wednesday, 1st February 2023, falling more than $3 at one point during the session, after U.S. government data showed that crude oil, gasoline, and distillate inventories were up sharply, while OPEC+ kept its production policy unchanged and the market is now banking on increased demand from China, while the outlook for Russian supply is uncertain.
The U.S. Energy Information Administration (EIA) said Wednesday that both U.S. crude oil and refined products inventories rose last week to their highest levels since June 2021 as demand remained weak. Crude oil inventories climbed 4.1 million barrels to 452.7 million barrels in the week ended Jan. 27, with refinery capacity utilization falling and net imports climbing at a time when crude stocks have grown for a sixth straight week.
Technical Analysis：
(Crude Oil 1-hour Chart)
OOil prices focus on the 76.00-line today. If the oil price runs above the 76.00-line, then focus on the suppression strength of the two positions of 77.31 and 78.14. If the oil price runs below the 76.00-line, then pay attention to the support strength of the two positions of 75.04 and 73.52.
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.
