Gold- FED Testimony
Gold is moving in a small Ascending channel.
Gold prices shifted lower tone after FED stronger pace in Rate hikes in 2023 onwards, and Rising consumer prices hit 5% up will Pressure on FED in coming days.
And this type of higher prices progresses means then FED might take necessary steps sooner than later.
US 10-year and 5-year treasury yields picked up higher, and the US Dollar index inched last week 2%.
US Dollar may strongly move in the upcoming 2nd quarter as US Joe Biden plans for the infrastructure plan.
US DOLLAR- FED testimony: -2022 forecast of US economy
USDCHF is moving in a bigger range after bouncing back from the higher low.
GBPUSD bounced back from the minor support.
US Dollar jumped higher about 2% last week and yesterday down to 0.40% as correction phase.
And FED testimony will take place this week, and after that, we can see the directions of the US Dollar in policy settings forecast.
A hawkish tone from FED allowed US Dollar shoots up higher. Other currency pairs like EURUSD, GBPUSD and AUDUSD formed a correction phase after 1.5 years rally.
US Government spending of 8 trillion Dollars for Next 4 years term is beneficial to rebuild infrastructure plans, and US Dollar made higher.
Growth will pace slowdown in 2022
Natixis analyst reported that the US Growth pace slowdown seen in 2022 than 2021.
And this is because of Stimulus reduction at the end of 2021, tightening monetary policy, and Tapering assets begins in 2021 end. This supports Eurozone will outperform the US in 2022.
FED will reduce purchasing debts in 2022, and the Labor report makes a less significant move in US Dollar gets lower.
The Fiscal Deficit is likely to smaller in 2022 than in 2021, which would slow down the growth of the US.
UK POUND-Transpacific agreement
GBPAUD at the top resistance level and higher high zone in the daily chart.
GBPCHF at the resistance level now – currently in the ranging market.
UK trade secretary Liz Truss started negotiations over the UK’s possible accession to the Comprehensive and Progressive Agreement for Transpacific Partnerships-Free trading Bloc.
The UK has planned to ease travel restrictions for those who vaccinated completely.
And UK Pound may suffer further levels as Bank of England monetary policy meeting may speech fear of inflation numbers; as Inflation reached to 2.1% in May month.
And Bank of England member Haldane said that Hawkish policy tone might come sooner than later if Domestic data performed well.
EURO: US Inflation report
EURJPY has broken the bottom level of the uptrend line and now trying to retest the broken level.
EURCAD is ranging between the small support and resistance level.
EURUSD may head towards to 1.15 level as Danske Bank report forecasted.US Dollar stronger based on Domestic data pickup and Labor data moves in a medium manner.
FED raising rates is not the only way to reduce inflations numbers, but proper Labor market and Proper Business reopening make Inflation levels stable in 6 months.
Lockdown releasing in many states in US and US Core PCE inflation data this week makes Worry for US Dollar and Counterparties gets stable.
European Union Financial services Chief Mairead McGuinness said Looming over the Brexit issues, as EU will consider resumes assessment for UK Financial Services.
EU financial services are not Isolated from the UK; if Britain avoids unilateral actions, then the EU will compromise with Uk for Financial services; this could be a benefit for both EU and UK.
Canadian Dollar- Iran Elections
CADCHF is moving in a descending channel.
Canadian Dollar declined lower as Correction phase and Bank of Canada policy meeting in July month may report on first-quarter progress and forecast of Second quarter progress of the economy.
Tapering of assets may happen in the next year 2021 end is expected.
And Iran elections makes a deal with the US makes postponed. Iran Oil supply accounts for 5% of global supply; if the deal was signed between Iran and the US, oil prices suffered more as a Supply constraint.
All eyes on FED testimony speech today and Any changes in the forecast of policy will give the Volatile markets in Canadian Dollar.
Japanese Yen: -China and Australia tariff war
CADJPY bounced back after hitting the higher low of the trend line + Retest zone of the previous resistance.
Japanese Yen pays stronger attention to Currency against All other currency pairs as the Correction phase begins.
The Covid-19 Spread is more in Japan and holds lockdown until July 2, ND week.
Rising Commodity prices brings lower, and Government takes the necessary steps to recover the Japanese Yen regrow to the previous level.
And the Tensions between Australia and China still not completed. And the compensation talks between Australia and China will happen Anytime.
Australia Asked Beijing about Wine tariffs and withdrawing from the plan, and if any affections on Wines, Australia will start to impose tariffs on China.
Australian Dollar-China on metals
AUDNZD is falling after retesting the broken Uptrend line + strong resistance zone.
Australian Dollar faces downward pressure as US Dollar stronger headwinds for Upper levels.
China is ready to publish the commodity metals helpful to sustains the rising commodity prices. Australian Dollar lost its value after metal markets lost significantly.
Today FED Testimony will suffer the Australian Dollar more, and the US Dollar only key point is driving the Australian Dollar and other currencies. China relationships with Australia makes worst as tariffs on imported products lies higher.
New Zealand Dollar- Westpac consumer confidence
New Zealand Dollar makes lower after Domestic data. Westpac consumer confidence came at 107.1 versus 105.2 in the previous reading. The number is slightly higher than the previous one.
And New Zealand Tourism opens for Tourists to visit and started revenue collections and compensate last 1.5-year backlog revenues.
China is the main importer of New Zealand Dairy products, and Chinese Domestic data formed major directions for New Zealand Dollar prices.
And Last week, FOMC makes US Dollar stronger, and New Zealand Dollar got weaker by 2%.