European stock indices rose yesterday, Monday, 20.6.2022 with a positive session, although gains are still few after the sharp drop witnessed last Thursday, 16.6.2022, after the Federal Reserve, the Swiss National Bank, and the Bank of England raised interest rates.
Commodity prices fell sharply, with investors worried about fears of a global economic slowdown, as copper fell to its lowest level since June 2021, and iron prices fell to their lowest level in 3 months due to fears of falling demand from China.
On the currency front, the Sterling Pound extended its gains after Ms. Catherine, a member of the Foreign Monetary Policy Committee, said that the British Central Bank should raise interest rates faster to counter the inflationary effects, and she voted last Thursday, 16.6.2022, to raise British interest rates by 50 points.
This morning, 21.6.2022, the Governor of the Reserve Bank of Australia, Philip Lowe, spoke and stated that the Reserve Bank of Australia will discuss raising interest rates by 25 to 50 points at the next meeting two weeks from today, and he expected the CPI to peak at 7% at the end of this year 2022 and that the Reserve Bank of Australia will work to the maximum extent possible to return inflation to the level of 2 or 3%.
It is expected that we will witness a positive session today, 21.6.2022, in the European and American stock indices, following the recovery witnessed today in the Asian stock indices.
Last week failed to break the support levels at 1.0340 and formed a strong base near these levels, with the possibility of witnessing a rebound towards 1.0600 levels, and a move above 1.0600 levels might prompt a retest of 1.0850.
While 1.0500 levels remain strong support levels.
It is trading sideways and the resistance levels at 1.2330 are still important, and a move above 1.2330 might push a test of 1.2460.
While 1.2200 levels remain major support.
It is trading in a narrow range between the $1820 support levels and the $1845 resistance levels, and a move in both directions is expected.