1. Forex Market Insight
EUR/USD
The euro shuddered lower on Friday, 16th December 2022 after the European Central Bank raised interest rates and signaled that rate hikes are far from over, stoking concerns about a potential global recession and causing investors to turn to the safe-haven dollar. Federal Reserve Chairman Jerome Powell said policymakers expect U.S. interest rates to rise further and remain high for longer.
Technical Analysis：
(EUR/USD 1-hour Chart)
We focus on the 1.0642 line today. If the EUR runs below the 1.0642 line, then pay attention to the support strength of the two positions of 1.0586 and 1.0529. If the strength of EUR rises over the 1.0642 line, then pay attention to the suppression strength of the two positions of 1.0734 and 1.0776.
GBP Intraday Trend Analysis
Fundamental Analysis：
The UK government’s plan to cap energy costs may ease price pressures in the short term, but it could further inflate the UK’s current account deficit. The U.K. current account as a percentage of GDP has been stable at 1%-5% for decades, but widens to 8% in the first quarter of 2022.
If gas prices continue to keep rising because Russia cuts off energy supplies to mainland Europe, the cost of the energy subsidy scheme could soar, potentially leading to a huge loss on the government’s balance sheet and a plunge in the pound against the dollar.
Technical Analysis：
(GBP/USD 1-hour Chart)
GBP is mainly focused on the 1.2147-line today. If GBP runs below the 1.2147-line, it will pay attention to the suppression strength of the two positions of 1.194 and 1.1762. If GBP runs above the 1.2147-line, then pay attention to the suppression strength of the two positions of 1.2311 and 1.2478.
2. Precious Metals Market Insight
Gold
Fundamental Analysis:
Gold rallied on Friday, 16th December 2022 but last week posted its biggest weekly loss since mid-November after the Federal Reserve said it needed to raise interest rates further to curb inflation. Spot gold rose 0.8% to $1,791.59 an ounce but fell about 0.3% last week.
Technical Analysis：
(Gold 1-hour Chart)
Gold pays attention to the 1793-line today. If the gold price runs below the 1793-line, then it will pay attention to the support strength of the 1783 and 1768 positions. If the gold price breaks above the 1793-line, then pay attention to the suppression strength of the two positions of 1808 and 1816.
3. Commodities Market Insight
WTI Crude Oil
Fundamental Analysis:
Oil prices fell more than $2 on Friday, 16th December 2022 following broad declines in global stocks on fears of a looming recession, after central banks in Europe and North America both said they would continue to fight inflation aggressively.
Earlier the U.S. Energy Department said it would begin buying back oil to replenish the Strategic Petroleum Reserve (SPR) for the first time since releasing a record 180 million barrels of oil from stockpiles this year. Subsequently, oil prices briefly recovered some of the lost ground at one point.
Technical Analysis：
(Crude Oil 1-hour Chart)
Oil prices focus on the 75.04- line today. If the oil price runs above the 75.04 -line, then focus on the suppression strength of the two positions of 76.07 and 77.76. If the oil price runs below the 75.04 -line, then pay attention to the support strength of the two positions of 73.52 and 72.77.
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.
