Gold: Delta Variant in US and Treasuries Sell off
Gold has bounced back from the support zone for more times.
Gold prices remain on the top side as US Dollar fell about 1% last day. Due to US treasuries heavy selloff that will reflect in the gold market.
Once US Dollar felt the corresponding value of Gold pushing to a higher value. Coming quarters Delta Variant pushed US Dollar down from inflation keeping higher mode.
Once Vaccinations cure the Delta variant then only US Dollar will come back again.
Gold prices in the near-term target are 1849$ in July month.
US DOLLAR: Reserve Bank of San Francisco Governor Speech
Reserve Bank of San Francisco Governor Mary Daly said we are at a good pace of Vaccination compared to the Global level; Delta Variant is much impacted to All Global recovery.
And also said that we have already declared victory over COVID-19 but yet we are in the midst of it. If other countries are not vaccinated efficiently, US growth is also will be on the downside.
The US Has done a good job of the Fast pace of the Vaccination process than developed countries. FED Powell has done a good job of accommodating policy running and soon removing the economic support from stimulus efforts.
Once Goals of Inflation and employment numbers achieved US FED will hike rates soon.
US DOLLAR: Biden Infrastructure plan
USDJPY trying to retest the previous support zone or broken uptrend line.
US Dollar index moved in a range of 92.500-92 level as FED meeting minutes makes unimpressed on tapering speech this week.
Rate hikes and tapering is the main word for economy-boosting in this pandemic situation, But Late hikes and tapering assets will decline US Dollar to down more.
The Wholesale inventories on the table of US Domestic data, came in higher than the Drawback for US Dollar.
US Joe Biden plan of infrastructure is a keen discussion on the Senate to approve $ 1 Trillion to economy comeback.
EURO: ECB meeting outcome:
EURUSD looks like breaking the top of the Descending channel.
EURGBP has retested the broken level of the descending channel.
EURUSD struggled toward to 1.18500 level after the ECB strategy meeting takes place last day. Since No outcome is special with this meeting, the way to achieve the 2% inflation target and Digitalization of Money is discussed.
And the Delta Variant spread across Europe slowly and Vaccinations must roll out fast manner, then only we avoid the fast spread of the virus.
ECB meetings provide no new matters about policy changes and tapering assets. Moreover, easing further policy settings if the economy worsens more.
UK POUND: GDP Data:
GBPUSD is moving downtrend forming a falling wedge.
GBPJPY is moving in a downtrend channel ranges.
UK GDP data shows underweight progress as expected 1.5 per cent by an economist but 0.8% came.
Industrial and manufacturing data were in line with expectations and construction data were lower numbers.
And Domestic data like inflation expected to 2.1%to 2.3% in the upcoming week.
UK Pound already suffered losses this week, So today will go for a higher pace than expected reading.
US Dollar will weakness shows and corresponding pairs GBPUSD, EURUSD will get benefitted.
Canadian Dollar: Employment data today
EURCAD at the higher low zone of an uptrend line.
USDCAD lifted for 1.25 mark after 2months correction higher.
And now Canadian Dollar is waiting for Canadian Jobs data which will be published today and the last meeting added 195000 jobs added versus 68k.
And 207k job losses in May and April respectively; But the unemployment rate fell to 7.7% in June month versus May 8.2%.
USDCAD set to Fall if Canadian Jobs reports came in a positive tone and reverse if came negative.
US Oil likely to fall as correction and postponed the OPEC+ meeting reflects the Oil prices lower.
Japanese Yen: 2weeks Tokyo Lockdown
CHFJPY bouncing back after hitting the support zone.
Japanese Yen significant downtrend slows and major counterparties flow declines against the Japanese Yen.
Nation has announced the 2 weeks lockdown in Tokyo makes another slowdown in the Japanese Economy.
These issues will take at least 2 years for the recovery of the Japanese economy. Inflation and employment Goals is the main focus of the Bank of Japan.
And US Treasuries continuous sell-off in markets shows support for the Japanese Yen.
Australian Dollar: Dimmed Chinese Domestic data
Chinese CPI came at disappointment numbers at 1.1% versus 1.3% expected, ButProducer Price index came at 8.8% with inline expectations.
China makes more easing monetary policy conditions to support the economy.
China also tightens the Foreign listed companies and Disclosures provided by Chinese companies operating in the US is not satisfied with Chinese Rules.
Due to this More Conglomerates are suffering from Chinese Action on Proper regulations to listed in US exchanges.
And the US Delisted many Chinese companies under Trump’s administration, reflection now in China tightened the conglomerate’s disclosures.
Australian Dollar suffered more losses as China domestic data disappointment numbers came and also Delta Variant spread across Australia and Sydney under 2 weeks lockdown.
Iron Ore prices Forecast
Iron Ore prices are set for higher prices as China set for Demand Drivers from the US.
US Joe Biden plan of $1 trillion infrastructure is speech going on Senate to reach a deal.
From that 109 billion for Roads, Bridges and Major projects, $66 billion for Rail and $7.5 billion for Electric Vehicle infrastructure as according to the White House Fact sheet.
Democrats push for additional funding to create green energy infrastructure, combined with the ongoing global reopening process, which ultimately benefits Iron prices.
Major infrastructure projects in the US requires Iron ore as Basic raw material. Due to this Iron Ore in coming quarters may increase further once the White House approved the Deal.
New Zealand Dollar: Rate hikes expectations
NZDUSD at the bottom level of the Descending Triangle pattern.
New Zealand Dollar posts further losses after Delta Variant spreads faster across Globe.
And China domestic data disappointments make Kiwi lower in coming quarters.
As the US Dollar stronger dominance will down the New Zealand Dollar. ANZ Forecasts of Kiwi will find a further bottom until the next rate hikes in November 2021 by RBNZ.
The forecast of Rate hikes is expectations and not officially announced by RBNZ.
Inflation and Domestic data performed well in New Zealand, but Delta Variant again disturbs the peace of New Zealand economy once more. So Upcoming Domestic data will see a fall in upcoming quarters.