USD/JPY: the instrument is testing a record high
The American currency is moving without a single trend against the Japanese yen, reaching the level of 144.50. A wave of correction in the markets came because of the active strengthening of the US dollar since the beginning of the trading week.
Recall, the regulator of Japan decided to keep the key indicator negative at the end of the meeting, held last week, also income from treasury securities for 10 years did not exaggerate the dynamics near zero. Moreover, it was decided to intervene, which hasn't happened since 1998, in order to strengthen the national currency, which has reached its lowest level in 24 years. At the same time, the consumer price index showed an increase in August to 3.0%, which is the highest since September 2016. Investors' desire to find an opportunity to hedge risks amid the geopolitical crisis provides an opportunity to ease pressure on the "Japanese" position and curb the pace of strengthening of the US currency in the pair USD/JPY, at least for the time being.
- Resistance levels: 145.00, 146.00, 147.00, 148.00.
- Support levels: 144.00, 142.54, 141.50, 140.78.
USD/CHF: The "American" is losing ground in the pair
In the Asian trading session, USD/CHF is retreating from the local high and is testing the level of 0.9965, updated earlier, and is trying to hold below 0.9890.
Investors' attention is turned to the changes taking place in the markets, indicating deteriorating prospects for economic growth in the euro area. Taking into account the processes in the U.S. and China, the cumulative situation could have a negative impact on the global scale. At the moment the regulators of the leading world economies intend to control the actively growing inflation by toughening monetary policy. Thus, by the end of this year economists expect another big increase of the key rate by the U.S. Federal Reserve System, and the Bank of England may hold an extraordinary meeting, at the end of which the regulator will increase a similar indicator due to the collapse of the national currency.
- Resistance levels: 0.9930, 1.0000, 1.0050 and 1.0100.
- Support levels: 0.9868, 0.9807, 0.9762 and 0.9700.
The price of the precious metal is trading slightly higher, moving away from the record low of April 2020 reached earlier, intending to hold above the resistance level of 1630.00, while uncertainty about the outlook for global markets is growing.
The volume of contracts on gold continues to decrease steadily, already this week the number of liquidated contracts exceeded the number of purchases. As it follows from the report of CFTC (Commodity Futures Trading Commission), at the end of last week, the level of transactions of pure speculative nature based on the precious metal fell from 97.3 thousand to 65.7 thousand. The balance between buyers and sellers has not changed much, as the advantage is still for the bears among the swap-dealers, amounting to 150,801 ths to the bullish 96,613 ths, That makes 10 times growth against the previous week, while sellers reduced positions by 21.070 thousand, 4 times more than the previous week.
- Resistance levels: 1640.00, 1653.92, 1675.00, 1688.58.
- Support levels: 1620.00, 1600.00, 1579.25, 1562.70.
Brent Crude Oil
The quotations of the benchmark Brent crude oil have consolidated below the level of 84.00.
The dynamics of the raw material is influenced by the prolonged release of crude oil from the U.S. strategic reserves. According to The Wall Street Journal, only last week the reserves were reduced to their lowest level of 1984, amounting to 427.0 million barrels, thereby giving way to the commercial reserves held by the American firms, thereby increasing fears among analysts, since the embargo on oil imports from Russia to the euro zone countries will take effect on December 5. According to preliminary data the world market of the raw materials may lose up to 1.0 mln barrels per day, which will create a strong impulse for the price growth, which will have nothing to compensate for.
- Resistance levels: 85.50, 92.00.
- Support levels: 82.40, 76.80.
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