Gold & Forex Analysis on USD, EUR, GBP, CAD, JPY, AUD, NZD, CHF – May 20, 2021

Gold

Gold is ranging at the higher high zone in the 4-hour chart.

Gold is ranging at the higher high zone in 4 hour chart.

Gold prices remain see-saw Volatility yesterday in markets as an outcome of FOMC meeting minutes.

Gold Mining

And Bitcoin fell about 25% in a single day makes the market little jitters in overall Global markets; investors pour funds into Commodity like Gold and Outflow funds from Bitcoin assets.

Elon musk and China banned Crypto payments transactions as Crypto assets consuming higher electric charges.

bitcoin Price fell

And FED tone yesterday was slower to tapering, but if the economy well progressed and reached our Goals go for tapering assets as concluded from FED Meeting.

US Dollar moves higher Yesterday after the Released FOMC meeting.

USD

USDCAD at the important support zone now in the weekly chart.

USDCAD at the important support zone now in weekly chart.

Yesterday FOMC meeting minutes give way for Tapering speech hinted at during conversations.

US FOMC Meeting

US economy is recovering robustly, but the employment rate remains lower, and non-farm payrolls data forms below expectations.

Overall economic growth in the US is positive for FED to adjust Policy tools in the near term.

And 70% of US population Vaccination will be completed by July 4 as Joe Biden initiated last month.

US Vaccination COVID 19 mass vaccination site at Citi Field baseball stadium

FED tapering speech bolstered US Dollar yesterday, and EURUSD moved down and Gold Fell.

And Other Side Bitcoin fell about 25% fall in a single day before the outcome of FOMC meeting minutes.

EUR

EURUSD bounces back after hitting the old resistance level.

EURUSD bounces back after hitting the old resistance level.

EURUSD rates fell by 0.50% after FOMC meeting minutes conducted yesterday.

FOMC 2

And FED joined hands for Tapering assets purchases as fears of inflation build up day by day.

If employment and inflation reached our goals, FED might step by step reducing asset purchases in upcoming meetings.

And Euro, on another side, Vaccination helped more regions to release lockdowns and the opening economy as well.

Recovery of US Economy places most of the currencies drawdown, and FED hints of tapering of assets purchases will give stronger to 10-year Treasury yields and US Dollar.

ECB Meeting:

ECB corporate faces Solvency risks issues moved elevated, and ECB must support corporate issue in Upcoming Monetary policy settings.

ECB Building

Due to national lockdowns, more businesses get locked, and the Unemployment rate is higher.

Now people consuming spends less as less money as income.

Corporate profits get losses in last 1 years, and many small businesses get affected.

As non-banking assets, loans are gets elevated for credit risks.

And ECB slower PEPP purchases will impact more corporate risks and Yesterday, Crypto markets went down more, and Euro Prices remains higher this month.

Euro Vaccination

Vaccinations moved People to engaged in works but businesses to take pickup at least 1 to 2 years to stable.

Losses that occurred in the last 1 year will take at least 2 years of period to overcome.

And Now, Financial stability remains under pressure in Eurozone, and Fiscal spending rising is the solution for stability in the financial strength of Europe.

GBP

GBPUSD ranging at the higher high zone.

GBPUSD ranging at the higher high zone

GBPJPY breakout and retest scenario at the ascending channel range.

GBPJPY breakout and retest scenario at the ascending channel range.

UK Pound moved losses gains of 3days yesterday after FOMC meeting minutes hinted at tapering bets of Asset purchases.

On the Otherside Post, the Brexit deal report shows Northern Ireland protocol gives a burden on the UK-EU relationship issue.

UK Brexit issue

As Food materials from Northern Ireland were checked in the EU Check post and clearance delayed.

Due to this, food supplied to people were delayed and reported many farmers to Northern Ireland Government.

UK Must takes steps to support Northern Ireland from Europe, But Eurozone strongly recommended following the rules of Europe to transmit Foods, animals and other consumer products by Northern Ireland.

And the Post Brexit issue remains weights for UK Pound to uplifted the prices levels of March highs.

CAD

EURCAD is moving in an Ascending channel range.

EURCAD is moving in an Ascending channel range.

USDCAD moved higher from 1.20 level to 1.21 level this week after FOMC meeting minutes talks about Tapering view on assets purchasing.

Canadian Dollar declined 1

Oil Prices declines down as Asian Countries faces tough Covid-19 3rd phase and more lockdown restrictions in India and Japan.

Due to this, oil prices and Commodity-linked currency like the Loonie declines after US Dollar stronger yesterday.

CADJPY fell about 0.30% as the Oil Prices correction progress.

And Upcoming Domestic data of the Canadian Economy drives the direction of the Canadian Dollar in future.

JPY

USDJPY is trying to break the bottom level.

USDJPY is trying to break the bottom level

Japanese Yen declines more as Lockdown impacted Businesses and the Essential life of people.

Japan Lockdown

And the Bank of Japan said Japan must recover from the current pandemic crisis of 3rd wave. Businesses will get soon from lockdown as the Vaccination’s process picked up.

And Exports were dull due to Asian Countries like Singapore and Taiwan faced 3rd wave of Covid-19.

China pathogen virus collage background with coronavirus covid 19

US Dollar inched up by 0.30% against the Japanese yen last day.

And the current scenario seems Japan takes years to recover from the economy, and the US Dollar healthier recovery shows in the near term.

AUD

Australian Employment change came in Disappointment numbers on Thursday show -30600 jobs decline from 15000jobs expected in April.

The unemployment rate fell to 5.5%, which was down 0.2% from March month.

RBA mentioned inflation and employment change goals once reached, then only we talk for tapering and hike rates possible.
RBA Reserve bank of australia

But Until 2024, there are no hike rates is possible, easing lockdown in more regions makes way for Businesses to started up; Labour force participation decreased from 66.3% to 66.0% in April.

Due to this, RBA going to alter the bond-buying program to fix the issue.

And Wednesday FOMC meeting minutes support US Dollar to the upside, as Tapering talks hinted in speech.

NZD

New Zealand Dollar remains lower, and the Budget of the New Zealand Government shows less borrowing and unchanged fiscal impulse. This creates less impact on RBNZ policy meetings.

RBNZ reserve bank of new zealand

Anyhow outlook of borrowings of assets is less in pandemic crisis time Favours for New Zealand Government to run efficient manner in upcoming quarters.

But FOMC meeting minutes declined New Zealand Dollar and Favors for US Dollar to the stronger lineup.

China strong domestic data support for exporting countries like New Zealand.

CHF

CHFJPY is moving in an ascending channel for a long time in 4hr chart.

CHFJPY is moving in an ascending channel for long time in 4hr chart

Swiss Franc continues to decline as Swiss national bank started for Forex markets intervention to compensate backlogs of pandemic crisis.

swiss national bank with flag

And EURCHF pointed higher this week for 0.50% as Swiss franc declines and Vaccination in Switzerland slower progress. Domestic data seems lower, the Unemployment rate quite higher and inflation data seems lower.

Eurozone is positive higher on vaccinations and reopening economies in many European countries like France, Italy, Greece, and Germany, Spain.

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