Sunday, June 26, 2022

Gold: FOMC meeting drags Gold prices

Demand for Gold is slower than expected as the Omicron variant spread has increased and the Gold prices remain in the consolidation range at 1760 to 1795$ even the FOMC meeting outcome looks positive for US Dollar.

XAUUSD Gold price is moving in the Descending triangle pattern and the market has reached the lower high area of the Triangle pattern.

XAUUSD Gold price is moving in the Descending triangle pattern

XAGUSD Silver price is moving in the Descending channel and the market reached the lower higher area of the channel.

XAGUSD Silver price is moving in the Descending channel and the market reached the lower higher area of the channel 

And FED Projected 2.6% in PCE inflation in 4Q of 2021, and it will be decreased in 2022 and 2023.

The hawkish Dot plot shows three rate hikes in 2022, which makes more positive for US Dollar.

Demand for Gold is slower than expected as the Omicron variant spread has increased

US House of Representatives voted for a $2.3 trillion extension of the Debt ceiling limit by 221-203 votes.

Now US Joe Biden has the Power to increase the debt ceiling limit to a certain extension.

US Dollar: FED Press meet outlook

USDJPY is moving in an Ascending channel and the market reached the horizontal resistance area of the channel.

USDJPY is moving in an Ascending channel and the market reached the horizontal resistance area of the channel

In the FED Press conference meeting, Powell said it is appropriate time to hike interest rates in the Economy to tackle inflation too high.

FED Press conference meeting, Powell said it is appropriate time to hike interest rates in the Economy to tackle inflation too high

And the Balance sheet discussions progressed, no decisions were taken on that in today meeting whether the Balance sheet shrink or is well based on the discussion which will be made next week.

Now Tapering the Bond purchases doubled to $30 Billion per month to complete the tapering purchases by March-end.

FED Powell commented shows hawkish made and cheered investors for Holding Dollars for the long run.

US FOMC meeting outlook and speeding Omicron spreads

FED Forecasted PCE inflation rate will be 2.7% in 2022, up from 2.3% last time forecasted, But 2.3% in 2023 and then 2.1% in 2024.

GDP Growth forecast will be 4.0% from 3.8% in 2022 and 2.2% in 2023 and 2.0% in 2024.Long Run expected reading is 1.8% for US Economy

GDP Growth forecast will be 4.0% from 3.8% in 2022 and 2.2% in 2023 and 2.0% in 2024.Long Run expected reading is 1.8% for US Economy.

And Covid-19 New strain of variant Omicron causes more drawback for Economy revival and hunt Job numbers in coming quarters.

Fed did not wait for Full up of Employment numbers gap and will do rising interest rates if inflation numbers are too high.

And Job Gains in the US shows solid, and the Unemployment rate is much better than expected.

EURO: German PMI came above expected numbers

EURUSD is moving in the Descending triangle pattern and symmetrical triangle pattern and the market reached near to the top of the Triangle pattern.

EURUSD is moving in the Descending triangle pattern and symmetrical triangle pattern

German manufacturing PMI came at 57.9 from 56.8 expected.

German manufacturing PMI came at 57.9 from 56.8 expected

Today ECB meeting is going to happen; whether any tapering of the Asset purchase program and to end the PEPP program at March-end is widely expected.

Yesterday US retail sales data made disappointing numbers printed at 0.30% versus 0.80% forecasted.

EURUSD made consolidated at support area of 1.12 level, and today ECB meeting outcome will drive the EURUSD to higher or lower side based on Decisions.

UK POUND: UK pushed back checks on NI beyond Jan 01

GBPUSD is moving in an Ascending channel and the market fell from the higher high area of the channel.

GBPUSD is moving in an Ascending channel and the market fell from the higher high area of the channel 1

UK Pound expected to jump above previous resistance area of 1.3350 this week ahead of Bank of England monetary policy meeting.

And UK has pushed back on checks for Northern Ireland Goods to UK Beyond Jan 01 22 deadline.

UK has pushed back on checks for Northern Ireland Goods to UK Beyond Jan 01 22 deadline

This News stays positive for UK Pound, and UK inflation reached 5.2% inflation in November month made cautious on rate hike today.

And European Parliament President David Sasol’s comments UK could face severe consequences in trade deal row with EU if delays Northern Ireland Protocol.

After comments from the European Parliament leader, the UK made an extension to withdraw checks on Northern Ireland Goods to England.

Canadian Dollar: Canadian CPI came as expected and Omicron spreads increasing

USDCAD is moving in an AScending channel and the market fell from the higher high area of the channel.

USDCAD is moving in an AScending channel and the market fell from the higher high area of the channel 1

The Canadian CPI inflation rate posted 4.7% in line with expectations, and the Bank of Canada will take proper tapering and Rate hikes in the next meeting in February.

Canadian CPI inflation rate posted 4.7% in line with expectations, and the Bank of Canada will take proper tapering and Rate hikes in the next meeting in February

USDCAD Flyover the Resistance area of 1.29 mark yesterday after FOMC statement Favours for US Dollar investors.

And Oil prices pushed lower as the Omicron variant spread speed fast in the UK, China and Europe.

So, more lockdowns are expected to make Demand for Oil slow with Supply increased.

And US retail sales came below expectations at 0.3% versus 0.80% expected and more plunging data from 1.8% the previous month.

The US-facing more cases from Omicron variant and Pfizer reported third booster dose would cure Omicron suffering at 77%.

Japanese Yen: FED Projected three median rate hikes until 2024

AUDJPY Price has broken the Descending channel, Market has rebounded from the minor Ascending channel..

AUDJPY Price has broken the Descending channel Market has rebounded from the minor Ascending channel.

US FED shows three Rate hikes median range projection in 2022 to 2024.

And 0.90% target in 2022 and 1.6% in 2023, and 2.1% in 2024 are projections from the FED tool.

From January, Tapering asset purchases of $40 billion in Treasury securities and $20 billion in Mortgage-backed securities will start, and in March, tapering will be completed.

Easing of monetary policy settings by the Bank of Japan, which shows the Japanese Yen's weakness

And Japanese Yen much suffered from FED News on tapering.

USDJPY Thumb up above 114.00 mark yesterday after cheer news for hot inflation worry investors.

This is due to the easing of monetary policy settings by the Bank of Japan, which shows the Japanese Yen’s weakness.

Australian Dollar: Jobs report came at cheer numbers

AUDCAD is moving in an Ascending channel and market consolidation at the higher high area of the Channel.

AUDCAD is moving in an Ascending channel and market consolidation at the higher high area of the Channel

The Australian Jobs report showed 366.1K printed versus 200k Jobs report expected, and the unemployment rate fell to 4.6% from 5.2% as 5.0% expected.

More Workers returned to work as per Job report.

Australian Jobs report showed 366.1K printed versus 200k Jobs report expected

And FED Powell & Co FOMC statement is hawkish Dot plots are projected in 2022-2024.

And PCE Projection for 2022 is 2.6% which was higher than the 2.2% projected in September

New Zealand, Q3 GDP data came above expectations as -3.7% from -4.5% expected.

And in Australia, New South Wales suffered from 25k cases daily as per the report.

Australian Dollar shows bearish trend as US Dollar stays in strong Bullish momentum.

New Zealand Dollar: New Zealand GDP outlook

NZDUSD is moving in the Descending channel and the market reached the lower high area and Horizontal resistance area of the channel.

NZDUSD is moving in the Descending channel and the market reached the lower high

New Zealand Q3 GDP came at -3.7% from -4.5%, and the previous reading stood at 2.4%.

New Zealand Q3 GDP came at -3.7% from -4.5%, and the previous reading stood at 2.4%.

And More lockdowns in Q3 time makes retail sales and manufacturing productions lower than expected.

But China retail sales well above expectations this week make more orders for New Zealand, and Exports revenues will increase in next quarter.

And RBNZ will do rate hikes in the February meeting as widely expected.

Yesterday FOMC meeting made drags down for New Zealand Dollar and tapering at a level of $30 billion per month from January onwards. So NZDUSD dragged down to 0.50% after News flashed.

Swiss Franc: SNB left rates unchanged at –0.75%

AUDCHF is moving in the Descending channel and the market reached the lower high area of the Channel.

AUDCHF is moving in the Descending channel and the market reached the lower high area of the Channel

Swiss National Bank left rates unchanged at -0.75%, and SNB said Expansionary monetary policy was issued.

Swiss National Bank left rates unchanged at -0.75%, and SNB said Expansionary monetary policy was issued.

And the inflation was projected at 0.60% in 2021 and 1.0% in 2022, and 0.60% in 2023,  GDP will be 3.5% growth, and Supply Chain Bottlenecks issues in the Swiss zone.

And SNB is willing to intervene in Forex markets if the Swiss Franc posted higher value, and we look to compensate the higher value of the Swiss Franc to moderate levels.


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