Gold: Debt ceiling issue in the US
Gold price is rebounding from the horizontal support area and the lower low level of the minor descending channel.
Gold prices are demand slower and Supply increased in the market, as US Dollar demand increases as Debt ceiling limit is not increased by Democrats.
Now combat over Republicans and Democrats not to increase debt limits for more spending for economies.
But Joe Biden plan of a $3.5 Trillion spending package to the economy is under trouble by Republicans opposition.
US Dollar stronger position makes gold prices triggered lower and counterparts remains lower.
And China Slowdown in the economy makes positive for US Dollar to buying more as alternative safety measures.
US Dollar: Senate prominent leader Chuck Schumer Speech
USDJPY is consolidating at the lower high area of the descending channel from march to sep 2021.
USDCHF is moving in an uptrend now forming higher highs and higher lows.
US Dollar index rose to 0.60% higher Yesterday, Due to the Debt ceiling issue is not being Solved by Democrats over Republicans.
And Senate Majority Leader Chuck Schummer said. The deal will be placed soon, and All were waiting for a good response from Senate Approval for Spending.
Uncertainty surrounds the market Because if US Dollar tapering is not done, inflation prices will get higher and a big blow for US Dollar once again.
Tapering is the only tool to solve higher inflation and Good job numbers to produce.
EURO: ECB President Lagarde Speech
EURUSD is still standing at the important support area.
EURAUD is falling now after retesting the previous ascending channel.
ECB President Lagarde speech in Vain and not attracted in investor minds, Repeated the same voice that Persistence of Inflation higher and Will calm down in H1 2022.
And No tapering or Rate hikes will be expected until 2024, Economy recovery is underway in its direction, and We will try to control the pandemic well in manner.
The German Unemployment rate came at 5.5% in September, and job numbers were down by 30k in September. Inflation figures are due later this week, and US Q2 GDP data remains in the table.
US FED is more cautious to tapering plan in November month and ECB waiting to taper as Economy recovery slower than the US.
UK POUND: Two rate hikes in 2022
GBPAUD is making correction after retesting the broken level of the ascending channel.
GBPCHF is rebounding after hitting the major higher low level of an uptrend line.
Bank of England is expected to increase rate hikes two times in 2022 is expected by the Economists point of view.
The labour market soon cools off by 1 million job vacancies will be fulfilled by 2022 as forecasted.
Furlough schemed ended this month makes way for rejoining Jobs to offices and business makes UK unemployment rate to lower than the previous month.
15 bps rate hikes are expected in February 2022, and in the second half of 2022, there might be another rate hike.
Brexit and Furlough schemes concerns
UK Pound faces the important crisis to declines down versus US Dollar in the FX market.
The first one is the UK Furlough scheme for unemployed people of 5% will end this Thursday. Now they will return to their jobs and the Unemployment rate looks higher.
Second is Gasoline prices higher due to more demand in All Gas stations and Petrol stations, mainly due to Lorry truck drivers shortage after Brexit.
The third is Fishing in the water system between England And France made them worried about overfishing. The Brexit deal said both have equal rights for fishing in Sea systems but concerns were generated between UK and EU.
Canadian Dollar: Domestic data concerns
AUDCAD is rebounding after retesting the previous broken desending channel line..
CAD is offset by surging Oil and Gas prices. And Bank of Canada expected to taper asset purchases in October month.
But the Sharper view of FED tapering makes CAD weaken further against US Dollar.
Canadian Current account surplus turned to deficit area due to international travel returns and commodities level offset.
And Canadian PM may Do more stimulus to the economic growth this time. So that we can expect CAD further weakness until the end of the year.
Japanese Yen: Bank of Japan Easing Monetary policies
EURJPY is falling from the resistance for a correction.
Bank of Japan’s weaker posture and loosened monetary policy settings makes the Japanese Yen more vulnerable further versus US Dollar and other currencies.
And Current party LDP will seek a majority in the election is expected if come to seat then see the trend of economic growth to Normal stance.
But slower Vaccination is affecting economic growth, and Easing restrictions are extended to Q4.
Many factories remain closed as pandemic affected and business remains affected by Slower consumption by retailers.
Australian Dollar: Chinese Mixed Bag Data
AUDCHF is still moving in a channel ranges – wait for breakout.
China data for manufacturing came at a contraction zone of 49.6 in September, missing expectations of 50.0 from 50.1 in August.
PMI for the Services sector came at 53.2 beating the expectations of 49.8.
The composite reading rose to 51.7 from 48.9 indicates the overall expansion in both sectors. Caixin Global data crossed the numbers at 50.0 versus 49.5.
China Government favours Consumers spending than manufacturing factories and Businesses.
Now China looking into potential energy sources like Coal and Natural Gas instead of Petrol for generating Power.
After EverGrande made Defaults to Investors, PBOC made more liquidity injections in the market.
New Zealand Dollar: NZ Domestic data
NZDUSD fell down more in this week from the lower high area of the descending channel.
New Zealand Building permits data shows improvement from the previous month, with a 3.8% m/m Increase.
ANZ Business confidence data crossed the wires.
US Debt ceiling extension seeks approval from Republicans and Democrats failed to convince in the senate.
And Republicans make sure not to spend the $3.5 trillion package by the Joe Biden party, Since stimulus is overloaded and US Debt in Trillion Dollars.
And US Treasury secretary Janet Yellen shows if the Debt ceiling limit is not passed, then US Government under Default from October month
Swiss Franc: Philadelphia FED President speech
CHFJPY is trying to fall from the lower high area of the downtrend line.
Philadelphia FED President Patric Harker said favours for tapering of 120 billion asset purchases and lowering inflation is now is visible in the market.
FED Powell clearly shows tapering is a way to increase economic growth in the coming years, and more stimulus is not required as the economy is now wakeup from the pandemic.
And vaccinations are properly doing in the US makes workers returned to Jobs as Fearlessness.
This makes all business activities and employment rates come at an average level in 2022.
Swiss France made higher due to China Evergrande crisis and demand for safety currencies lookout for Buying Swiss Franc more.
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