Markets are bouncing back after hitting the key areas – Gold and Fx Chart Analysis

Gold: China cuts 50bps on Reserve Requirement ratio

Old resistance still acting as a new strong support on gold price chart.

Old resistance still acting as a new strong support on gold price chart

Gold prices remain lower as Demand for Gold decreased as Lockdown imposed many regions around Globe.

And Recent Gold prices fall due to Covid-19 Delta Variant spread across Globe. This shows the uneven path in the economy.

This kind of situation makes reducing asset purchases happened and gold prices will lift higher.

people Bank of China makes a cut of Cash reserve Ration for all banks for 50bps on Friday

And the people Bank of China makes a cut of Cash reserve Ration for all banks for 50bps on Friday. China is the only country that comes back with a pandemic stimulus and makes big support for the economy regrowing.

By Releasing 1-Trillion Yuan for the economy to recover because of Higher commodity prices leads to higher production costs and slowing the momentum growth in China.

US DOLLAR: Expectations of rate hikes

USDCAD is moving in an uptrend ranges.

USDCAD is moving in an uptrend ranges

US Dollar does not lose its value in the market and boldly stays in the Upper value of the market. This comes after the Inflation and Powell meeting scheduled this week.

US Dollar does not lose its value in the market and boldly stays in the Upper value of the market

And China has eased monetary stimulus to enhance the Business recovery. Soon FED will go for tapering assets and Rate hikes next year to support US Dollar.

But US Central Bank keep rates lower until Borrowing should be minimum level, Then Cost of Borrowing came to end and business improves.

EURO: Post Brexit Deal

Breakout and retest of the descending channel happened in the EURUSD 1hr chart.

Breakout and retest of the descending channel happened in the EURUSD 1hr chart

EURCHF Old resistance converted into new support zone? Wait for the bounce back to confirm it.

Old resistance converted into new support zone Wait for the bounce back to confirm it.

Eurozone ECB takes a proper plan for further easing or tightening decisions depends on Economy supports.

Brexit issues still pending on the UK side, EU demanded UK has to pay the UK pound 40 billion for Post Brexit arrangements.

Brexit issues still pending on the UK side EU demanded UK has to pay the UK pound 40 billion for Post Brexit arrangements

EURGBP losses further 0.60% after UK Pound posted a major gain on Friday.

None of the major Eurozone Domestic data releasing this week.

And Delta Variant numbers increasing in Eurozone as day by day, Vaccination rollouts posted major drivers for People to escape from Covid-19 attack.

ECB Forecast strategy for inflation

ECB central bank policymaker Yannis Stournaras said in Greece’s Kathimerini Newspaper as the European Central Bank acting now in a safer strategy to use to combat inflation time now.

2% is the target but beyond 2% is Vulnerable to the economy. Until above 2 % then ECB gets tapering or excess funding is possible.

ECB is Doing this before the crisis comes action taken by ECB members.

Among developed nations, a 2% target is an easy to achievable target for inflation numbers, so ECB must take proper action if inflation Goes beyond the normal level.

UK POUND: Inflation and employment data

GBPUSD is moving between the channel ranges in the hourly chart.

GBPUSD is moving between the channel ranges in the hourly chart

GBPUSD makes higher last week 1.5% and This week inflation and employment change data takes place.

Once came in positive then make cables higher; as US 10 years of Treasury, Yields makes more sell-off in the market will affect the counter currencies pair.

BoE FPC minutes and financial stability report Going to publish

Tomorrow 30-year Bond auction closely to watch. And this week Tuesday BoE FPC minutes and financial stability report Going to publish.

And also, ECB President Lagarde said there are some policy settings in upcoming meetings.

Canadian Dollar: US FOMC meeting forecast:

AUDCAD has broken and retested the descending channel, now starts to bounce back.

AUDCAD has broken and retested the descending channel now starts to bounce back

Canadian Dollar posted small gains as correction last week Friday, But US Dollar benefitted from FOMC Speech on June month about tapering assets purchases.

Rate hikes are not Possible until 2022 but tapering is expected when inflation reading above 2% sustained.

And USDCAD pair posted 1% losses on Friday and Will may go for another blow to 1.23500 in this week.

Japanese Yen: Lockdown in Japan and UK

USDJPY has touched the previous broken horizontal support zone.

USDJPY has touched the previous broken horizontal support zone

Japanese Yen gets Full declines on Friday after a Long up move on Thursday. More lockdown in Japan causes the Japanese Yen to slow down.

More lockdown in Japan causes the Japanese Yen to slow down

And another side Brussels and UK locked in UK Brexit Bill.EU said UK obliged to pay Euro 47 billion as UK Pound 40 billion on Post Brexit arrangements.

The UK recorded higher infections in the last 5 months. UK PM Boris Johnson said whether Mask wearing compulsory or No formalities requirement after releasing lockdown is wait to see.

Australian Dollar: Jobs report expectations

AUDNZD has formed a Symmetrical Triangle pattern in the daily timeframe.

AUDNZD has formed a Symmetrical Triangle pattern in the daily timeframe

Australian Dollar makes support from a correction in last week, But Delta Variant posted increasing numbers in Australia.

Sydney posted a higher number and Lockdown proposed until July 16

And Sydney posted a higher number and Lockdown proposed until July 16. The employment rate is expected to increase 5.1% from 5.0% and 60k Jobs will be added in June month. This overview shows another Dip for the slowing economy we may saw in further days.

US Fed Chair Jerome Powell semi-annual Congressional Testimony on Wednesday and Thursday shows some clues about US central bank policy outlook.

This shows US Dollar action in the coming days against the Australian Dollar.

New Zealand Dollar: Delta Variant

AUDNZD is trying to break the top of the descending channel.

AUDNZD is trying to break the top of the descending channel

New Zealand Dollar faces tough combat with US Dollar as Delta Variant spread across Australia.

Due to this New South Wales and Sydney put lockdown until July 16. Flights from Australia to New Zealand were checked especially as Delta Variant affected people from Australia.

Only 2 cases recorded in New Zealand but more cautious to support the economy from the pandemic.

Consumer price index to rise 2.7% y/y from 1.5% in Q1.

No rate hikes in Wednesday meeting

Reserve Bank of New Zealand Meeting scheduled this week and no more tapering assets and No more rate hikes in this meeting expected

Reserve Bank of New Zealand Meeting scheduled this week and no more tapering assets and No more rate hikes in this meeting expected.

And Rate hikes will be confirmed doing in November month as expectations rising from 48 to 72% of Voting polls suggested.

Many regions of New Zealand must sustain to a normal level and Delta Variant only 2 numbers reported, so Covid-19 cases very low numbers in New Zealand.

With a sharp change in improvement outlook, we take a different path in Policy settings.

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