Gold: FOMC favours for US Dollar and Unfavored for Gold
Gold is moving in a descending channel from last few days, now it’s trying to reach the previous support. If USD gets strong, Gold will fall further in a technical structure.
Silver XAGUSD has reached the major support area and it’s still moving in a descending channel – wait for breakout or reversal
Gold prices are sluggish after the FOMC statement of Tapering and Rate hikes road map is visible to investors in this meeting.
Now Real estate crisis made China another threat to its Economy; Bonds investors are due date to settle the funds of $83 Million today; if finds any default in payment, will make changes in the Chinese Economy and Selling Gold pressure further continued.
The largest importer of Gold in China now realizing the tough situation in the Economy from the Delta variant and Real estate crisis, and selling Gold is a relief for more stimulus to injection in the Economy.
US Dollar: Divergence Policy between FED and ECB
USDJPY has broken the top of the minor downtrend line
USDCHF is consolidating at the support area and the higher low of minor uptrend line.
US Dollar set to higher as FED closer to tightening stimulus condition as US Economy Favours for FED forecast.
And ECB said its tapering plan for faraway from the FED Goal of tapering, so much divergence is seen in ECB and FED in monetary policy tools.
ECB will keep patience and Do tapering in according to Eurozone Economy recovery.
Today Speech from FED Powell and Vice-Chair Clarida, and Voting member Michelle Bowman is yet to plan for Speech.
US Economy shows step by step recovery as Vaccination pacing higher.
EURO: German IFO data
EURUSD is consolidating at the support area.
EURCHF is still consolidating at the support area.
German IFO data came at 98.8 versus 98.9 expected, and Euro shows declined in the market as lower high completion.
Eurozone shows slower economic recovery as per Economic data. So, ECB must take proper actions to work out where the Economy gets slower and injected stimulus, and fast vaccination rate is more support for Eurozone to recovery.
And FED posted a clear road map for tapering done within mid-2022, and the Year-end of 2022 will see expectations of rate hikes.
The forecast of the Fed shows confidence in the US economy, but here in Eurozone facing Dull in Germany, France Domestic data.
This week German election will see some corrections in Euromarket.
Mostly favourable for the current chancellor of Germany, Angela Merkel, because more Foreign united policies are implemented for the growth of Germany.
UK Pound: Bank of England Monetary policy meeting
GBPNZD is rebounding from the higher low of the uptrend line.
GBPCHF is moving in a channel range, trying to break the higher low of major uptrend line.
UK Pound made weaker tone as Energy crisis caused several Gas Providers to go Bankruptcy.
But Now Pillar is supported by Bank of England committee members of 2 people votes in Favour of Early stimulus spending to End.
Yesterday Bank of England Monetary policy meeting happened, UK Pound soared to 1% up after the meeting.
And the outcome is favourable for UK Pound to reduce stimulus spending soon if the economy fully recovers.
UK Domestic data shows moderate improvement in recent days, but any hikes in the interest rate or Tapering is good for Reducing inflation rates.
Canadian Dollar: Crude Oil prices favoured for CAD
AUDCAD is moving between the channel range.
Canadian Dollar up by 2% after Canadian Election won by current PM Justin Trudeau and US Oil prices are gradual increase to 70$ mark.
And also, the Canadian economy is moderate growing and Vaccination rates are higher, so anytime Tapering is visible in the Bank of Canada in the upcoming meeting.
USDCAD declined over 2% from highs as the Canadian Dollar strengthened.
US FED meeting favoured US Dollar as a clear road map for tapering and rate hikes shown in the meeting.
Now fears of FED tapering is gone, and US Dollar makes strengthens the market.
Japanese Yen: Inflation rate lower
CHFJPY rebounding hardly from the higher low of uptrend line and the horizontal support area.
US initial jobless claims data shows increased in a second straight month as 351K rose as September 18th end.
And Purchasing manufacturing index dropped to 60.5 in September from 61.1 in August.
The services sector shows 54.4 in September as below expected values of 54.0
US Domestic failed to impress the numbers, and the Japanese Yen made down overall currencies due to lack of Vaccination and lack of proper stimulus in the Economy.
And Japanese inflation rate was published at -0.4% versus -0.3% Previous reading.
Inflation lowering put pressure on the Japanese Government because demand was slower to purchases and decreased retail sales as consumer sentiment weakness.
Australian Dollar: Chinese Evergrande payment today
EURAUD is moving in an Ascending channel.
AUDUSD made higher about 1% after Falling on Wednesday seems correction as FED meeting result.
And China Evergrande Default payments are due on Friday as US$83 million as of March 2022 Bond Coupon as Offshore mode. Still, no opposition comes from the company to settle the Funds to creditors.
People Bank of China planned to inject a lot of stimulus to recover from the crisis and escape from the Liquidity crunch.
Only Hopes on Evergrande is Chinese Government Actions and Bank of China.
China has become the second-largest GDP in the world, so any liquidity crunch happens, then it will affect exporting countries like Australia and New Zealand.
Australian Treasurer Speech
Australian Treasurer Josh Frydenberg online addresses major businesses; the Australian Economy will show significant growth next year once the pandemic is solved.
And More Delta variant is seen in New South Wales and Victoria. We expect more household consumption and investment picked up in solid recovery in all regions except Victoria and New South Wales.
Delta gives a significant blow to the Australian Economy, and Fiscal support only provides support for the Economy to come back from the pandemic.
It is essential to follow the national plan, and we all hope for the Australian Economy to recovery soon once all pandemics are solved.
New Zealand Dollar: 75% of Vaccination to Adults completed
NZDUSD has made 50% retracement, it’s now trying to fall further..
New Zealand Dollar faced a range-bound market after Rally last month. Now Vaccination rate is 75% is completed for Adults.
And PM Jacinda Ardern said 90% of adults who completed Vaccination would support releasing lockdown in All regions.
Removed more stringent lockdowns in Several areas of New Zealand except for Auckland.
And China Evergrande Issue is a concern for Export revenues in New Zealand as China slowing their imports as Domestic usage is lower.
A 91% chance of 25Bps Rate hikes is expected from the Reserve Bank of New Zealand in the October meeting, and once hikes happened, the Trending market is visible in New Zealand.
Swiss Franc: Wells Fargo View of Swiss Economy
ADUCHF is moving in a minor descending channel now.
Swiss national bank shows more accommodative policy settings, and no change in policy settings keeps interest rates unchanged at -0.75%.
And Swiss Franc posted more robust gains after the Published SNB meeting.
The Swiss zone faces gradual economic recovery with inflation point, So Anytime FX intervention is possible to control Swiss Franc prices higher.
And EURCHF will attain 1.09500 by the end of 2022, as Wells Fargo analysts expected.
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