+2000 Points Gold went up after hitting the previous resistance which acted as a support zone.
Gold prices remain higher and USDJPY down after yesterday FOMC meeting minutes. Rate hikes in June 2022 for 25Bps is thumbs down from 28-19% expectations.
And More rate hikes and tapering assets are only key drivers to hammer gold prices.
And now over half of the Covid cases which spread in the US are Delta Variant. and Lockdown still not announced in US and it’s a stronger move by US Government.
But its spreading more in Australia, UK and Europe regions. As Two doses did in the US makes it stronger fight from Delta variant.
US DOLLAR: FOMC outcome
USDCAD breakout the top of the Ascending Triangle.
US Dollar benefitted from the Last FOMC meeting in June month and DXY index up by 2.5% from lows after Hawkish tone from FED.
But Yesterday meeting shows no more hawkish tone speeches takes place.
As Tapering QE assets is not possible in the near term due to delta variant causes another crisis in the US and More spread from Delta Variant causes more deaths.
So in 2021 no more tapering and inflation numbers will shoot up higher as expected.
The only solution is to end the Delta variant is Vaccine to destroy the Delta type of Covid-19, otherwise recovered Domestic data gets declined to March 2020 level once again.
Demand For highly skilled Workers
In the US More demand for Highly skilled workers and the Labor supply now higher to support the economy.
And Companies are ready to give higher pay to attract employees to come back and restore the work. This in turn higher inflation numbers as Higher inflation growth.
Demand For labourer’s is highly recommended in the US and Most skilled workers are retiring from Companies during Covid-19.
Now Companies ready to pay higher wages according to skills and US Dollar gets more support from wages Growth. Once Wage Growth increases FED will hike interest rates.
Euro: ECB meeting
EURGBP has broken the top level of the Falling wedge pattern in the 4-hour timeframe chart.
+2500 Points EURAUD went up after retesting the higher low of trend and support zone.
EURUSD moved down lower ahead of ECB monetary policy scheduled today.
Still, goals of inflation remain lower than 2% and closer to 2% value. Any changes in policy changes may reflect in EURO price movements.
Climate changes at the global level are the main speech that takes place and the economy surrounded by the Covid-19 Delta variant is another sorrow for Eurozone.
German ZEW economic sentiment gives lower numbers shows hopeless content for investors. EURUSD further aimed to 1.17 level in July month-end.
UK POUND: Brexit deal and Reopening economy
+2700 Points Up from the reversal confirmation of GBPCAD from the higher low and support zone.
UK PM Johnson is ready to reopening of lockdowns fully by July 19 is a stupidity decision as said WHO official Mike Ryan warned.
Delta variant global level surpasses 8000 deaths and 4 million from covid-19 is said by Hopkins university report.
And in the UK virus infections jumped to six months high on Wednesday and above 32k level.
UK PM Johnson warned Northern Ireland to support for Protocol and UK under the Brexit deal with the EU.
Further Strength of Job numbers may give gains for US Dollar.
Canadian Dollar: FOMC meeting minutes:
+1800 Points fall after the breakout confirmation of triangle pattern in cadjpy.
CADJPY has broken the bottom level of the Triangle in the 1-hour chart.
Canadian Dollar makes worst hit as OPEC+ meeting postponed after without date fixed for next meeting.
And US FOMC meeting minutes outlook shows whenever inflation pointed higher FED will take proper tapering asset purchases to control in upcoming quarters. Rate hikes are the last tool to curb inflation moving higher numbers.
USDCAD clinched to 1.25 level after long downtrend correction progress and still will reach to 1.26-1.27 level by this month-end.
Bank of Canada in July meeting may discuss for another tapering asset is possible, Delta Variant curbs the tapering and easing policy setting is benefits for the economy.
Japanese Yen: Economy downgrades
+1200 Points USDJPY fall after breaking the bottom of the Uptrend line.
Bank Of Japan cuts its economic growth forecast as the Japanese Government announced two weeks lockdown in Tokyo region.
Since country matching robust exports from economic recovery but consumer demand is less at the global level. This makes the Japanese Yen shows less attractive for Investors to pay.
And Bank of Japan rises inflation numbers as recent rising in prices of energy costs.
Reports of Japanese forecast of economy downgrade pay Japanese Yen very lower investments.
Australian Dollar: RBA Governor Lowe speech:
AUDUSD retested the neckline of the head and shoulder for second time and starts to fall.
Australian Dollar crushed to lower levels as 0.74200 from February 2021 end.
As RBA Governor Philip Lowe said tapering assets of AUD$ 4billion from AUD$ 5 billion is support for the economy, but long-term interest rates will be hiked before 2024.
And US FOMC meeting minutes is not hinted at tapering assets because delta variant makes Full stop for tightening monetary policies.
US Dollar suffered more after no more way for tightening policy settings in 2021.
Dovish message from Philip Lowe makes Aussie lower in the medium term.
New Zealand Dollar: Jobs ads grew by 1%
EURNZD has made a fake breakout and rested the support zone – wait for candle closing to confirm the reversal.
New Zealand Dollar posted lower lows from last day as Covid-19 Delta variant spread across Global level.
And it is slightly affected delta variant patients may impact the economy of New Zealand Much more.
New Zealand Jobs ads grew by 1% last month shows a brighter future for Job growth in the economy.
And US faces huge Delta variant cases day by day and still not announced lockdowns in the US.
Unlike the US and UK, New Zealand Government said, we did not live with the covid-19 virus. So we initiate a lockdown and Vaccine rollout process progressing faster.
Swiss Franc: Unemployment rate
USDCHF has broken the bottom of the uptrend channel line.
Swiss Franc posted losses as the Swiss unemployment rate waiting to schedule this week.
And Atlanta FED President Raphael Bostic said highly contagious disease shows very vulnerable to US economy to slow down and US Dollar maybe got a blow in upcoming quarters.
Falling consumer demands make Domestic data report falls suddenly after Delta variant affected.
USDCHF may suffer further losses as FED may take time to taper assets.
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