Market Prices are breaking the highs and lows – check gold and currencies analysis

Gold: China energy crisis made less demand on Gold

Gold is still consolidating after breaking the top (lower high) of the descending channel.

Gold is still consolidating after breaking the top lower high of the descending channel.

Gold prices have remained in the range-bound market as 1720-1780$ for the last 2 weeks, and US Dollar continues strong performance in the market makes declines to Gold prices.

Gold prices ticked lower as China facing a real estate crisis from Real estate giant Evergrande facing a Default of 300 billion.

And China is now affected by Covid-19 and Electricity crisis So, Selling off Gold in China makes more than other nations.

Fed Tapering in November makes Surge the US Dollar and Gold prices to decline as Huge storage costs.

And 10 year US Treasury yields went high makes a drag for Gold prices.

The rising debt limit in the US until December month makes temporary relief for printing more money to solve the Economic crisis

US Dollar: US Dollar demand higher on Oil Prices increased

USDCAD is consolidating at the lower low level of descending channel.

USDCAD is consolidating at the lower low level of descending channel

GBPUSD is standing at the retest area of the symmetrical triangle pattern – wait for reversal or breakout.

GBPUSD is standing at the retest area of the symmetrical triangle pattern

US Dollar index makes range-bound market as 93.400 to 94.500 level as Domestic data performed well in the US.

US economy is growing

And last week, US NFP data came at worst performance, but the unemployment rate fell to 4.8% first time since the pandemic.

And US Debt ceiling limit deal was extended to December month, So temporary relief for printing more money until December month for US Government.

On-Going energy crisis makes US Dollar more demand as Oil consumption is higher in Asian Countries, the EU and UK.

So USD makes a better performer against EUR, UK and JPY.

North Korea and US missile deal

North Korean leader Kim Jong Un said there is no reason to believe that the US is not hostile for us.

US North Korea tested New railway borne missile system to attack enemy forces significantly.

And they will keep strengthening military power by ramping up missile testing activity.

The last 2 years between the US and North Korea have not been a perfect deal with missile testing to stop; due to this, every step of North Korea proves panic on Global nations, including the US.

And US Joe Biden team whether imposing more sanctions on North Korea or keeps peace deal with North Korea and waiting on speech between two countries.

EURO: Economic data came at Dull picture

EURJPY is moving up continuously breaking the highs with buyers pressure – now market is consolidating at the higher high area of the channel line.

EURJPY is moving up continuously breaking the highs with buyers pressure

EURAUD is falling down continuously breaking the lows – wait for further breakouts or corrections from the upcoming highlighted support areas.

EURAUD is falling down continuously breaking the lows

Euro area ZEW economic sentiment index came at 21 versus 31.1 previous, and German ZEW economic sentiment index came at 22.3 versus 24 forecasts and 26.5 last points.

Euro inflation readings fell to 1.9 in June month from 2.0

And from the above data, we have seen Germany backing the Domestic data, which automatically affected the overall Euro area sentiment index.

France and Germany are significant contributors for Euro area if both country economy indicator failed, Euro are likely to drop.

Euro bond yields and US bond Yields are more comprehensive, So ECB makes tapering or rate hikes soon are possible to avoid the gap.

UK POUND: Employment data mixed bag

GBPNZD has broken the higher low of ascending channel and retesting now.

GBPNZD has broken the higher low of ascending channel and retesting now

UK Employment data came in surprise higher than expectations; Unemployment rat came at 4.5% versus 4.6% previous reading.

And Employment change shows 235k versus 243k forecasted, with a mixed bag of Employment data, shows UK Pound proud to be stronger.

UK economy Domestic data of UK Performed well

And the energy crisis in the UK makes Oil prices higher, and Consumer spending makes higher and inflation getting hot.

So Bank of England Governor Bailey and member Michael saunders supports Hawkish interest rates by the end of 2021.

UK Budget to be presented at October 27 and lower spending budget is outlook shown by Finance chancellor Rishi Sunak.

UK Clashes with EU on Northern Ireland Protocol and France with Fishing rights.

Planning for Higher tax implementations through this budget is possible.

Japanese Yen: US Treasury yields earned higher

GBPJPY has broken the top of the descending triangle and went up +2500 points.

GBPJPY has broken the top of the descending triangle and went up 2500 points

Japanese Yen stood weaker at 4%, falling in three weeks as US 10 year treasury yields rose to 1.60% for the first time since May.

And the Inflation rates surging as fire, it impacted Japanese yen Holders and a selloff in panic and Invested in US treasury yields to earn higher interests.

More lockdown in Japan causes the Japanese Yen to slow down

So now the Japanese economy is affected by two significant issues, which are Covid-19 and Energy crisis.

Due to this scenario, Japanese Yen sells on high is preferred until New PM elected after Election in November.

Canadian Dollar: Bank of Canada expected to taper

AUDCAD has retested the horizontal support and the previous descending channel area and rebounding from that zone.

AUDCAD has retested the horizontal support and the previous descending channel area and rebounding from that zone

Canadian Dollar near to 91 against Japanese Yen as Oil prices surging day by day.

And Canadian employment rate and Job numbers came at robust growth in the employment sector, and this growth makes the Bank of Canada do tapering in monetary policy meetings.

Canadian Economy is moderate growing and Vaccination rates are higher so anytime Tapering is visible in Bank of Canada in the upcoming meeting.

US JOLTS Opening data and US FOMC meeting minutes scheduled this week based on US Data Canadian Dollar will perform this week.

And USDCAD declined below 1.25 level and now concentrated to 1.24-1.23 level as CADJPY Significant move as 5-6% in 1 month.

Oil prices are higher and more demand from China, the EU, and UK make the Canadian Dollar grow higher.

OPEC+ agreed to raise the supply, but demand is not slower as before because major developed nations require more demand than supply.

Australian Dollar: Coal demand more in China

AUDJPY is moving continuously breaking the highs with buyers pressure.

AUDJPY is moving continuously breaking the highs with buyers pressure

Australian Dollar keeps higher above 0.73200 level after 1-month range-bound market.

As Coal is the major exporter of Australia to China formed more revenues in Australian Dollars helped AUD to regain the Bullish trend.

Coal is the main importer of China for electricity production

And New South Wales, the major city populated country, loosened restrictions as Covid-19 cases decreased, and Vaccinations rates were pushed higher.

And the Energy crisis more in the EU, UK and China made a demand for commodity prices like Gas, Petrol and Coal.

China had already halted mining operations due to more electricity consumption and is now looking for Electricity for home uses and factory usages.

New Zealand Dollar: Lockdown extension in Auckland and travel ban exists

EURNZD is moving down in a descending channel breaking the lows continuously.

EURNZD is moving down in a descending channel breaking the lows continuously

New Zealand Dollar makes higher as RBNZ last week rate hike 25Bps points and Yesterday New Zealand PM announced one-week extension lockdown for Auckland City as Spread got less severe.

New Zealand Dollar suffered lower as Nation faced tough lockdown in all areas soon releasing of Tier 4 to Tier 2 conversion will be happened.

So the extension of lockdown impacted one side, but tapering of Newzealand dollar is more support for the bullish trend to NZDUSD.

China is facing Evergrande real estate, Energy supplies and Delta variant issues.

So Imports from Neighbouring countries like Aussie and Kiwi gets lower than essential commodities.

And Travelling to Abroad allowed by Australian Government as 70% Vaccination completed.

But Still, Newzealand is not allowed for Travelling abroad, and the vaccination process waiting for completion by year-end

Swiss Franc: Demand for Swiss franc higher after crisis happened in China

EURCHF is still standing at the support area – wait for breakout or reversal.

EURCHF is still standing at the support area wait for breakout or reversal

Swiss Franc makes higher close to June month high level as demand more created from crisis developed nation.

Safer and higher yield currencies are more dominant after the covid-19 crisis are the Swiss Franc and US Dollar.

But Domestic data in Swiss nations make lower and Vaccination rates slower, and demand for safety comes first in Swiss countries other than the US.

US NFP data disappointed last week, but USDCHF makes range-bound market because CHFJPY makes 5% higher than the previous month.


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