Gold: US Core PCE inflation data
Gold XAUUSD hits lower high area of the descending channel – wait for the confirmation of reversal or strong breakout.
Gold Prices moved in the ranging market of 1775-1795$ as all eyes now waiting for Jackson’s Hole symposium this week.
All members of FED signalled for scaling back purchases of 120 billion per Week,
And Core PCE inflation data scheduled this week, 3.57% in July is first Highest reading since 1992, So this time higher inflation leads to tapering assets possible and reverses if not in well-expected numbers.
Gold prices are supported by lower inflation as FED may not Do tapering; only higher inflation numbers worry for gold bullions.
US Dollar: Delta cases increased in the US
USDCAD is moving in an uptrend line in the 4-hour timeframe chart.
GBPUSD is rebounding from the support area – it looks like double bottom.
In the US, Covid Cases shows Higher as 7-day Average as 67k to 167K numbers; due to this scenario, FED may be delay tapering talks is possible, or Overheating inflation causes FED to deliver tapering assets in a pandemic situation.
And China also Facing lots of tough situations against the Pandemic; So US Dollar may be at risk of not done Tapering by the FED.
And US Dollar is moved close to higher resistance at 93.500 as Demand makes higher due to the risks of a pandemic.
Natixis expected US Growth lower in 2022
Natixis economist analyzed and said the Growth of the US would lower in 2022.
And Higher inflation leads to lower consumption, and Wages are ticked higher as Demand for jobs came to lower as a Mismatch of skills and business needs in US companies.
Due to this, why unemployment rate also moved higher, and Vaccinations Progressing made higher, and the Delta variant pushed US Growth to declines in 2022 started.
Equity markets are brighter in the US than in Europe
Natixis economists told US Equity markets growth higher than EU since 2012-2021.
And a huge share buyback in US Equity markets shows. Companies strengthen and well-doing corporate structures.
So Low premium shares in the market will well buy for Investors in US Markets.
And In Europe, Markets are pricing higher, and Stocks listed are at higher prices, so Institutional investors and big people show less interest in Eurozone than the US.
EURO: Weaker Eurozone PMI
EURUSD is moving in a minor descending channel range.
EURGBP is trying to break the minor descending channel – wait for the confirmation.
EURUSD moved higher from lows last week as Eurozone PMI data shows the Lesser impact on markets.
And A Mixed Bag of data shows fewer drag points of EURUSD.
This week Jackson’s Hole symposium makes a healthier vision for US Dollar further Upside move due to tapering announcement from FED.
ECB may not do rate hikes until 2023, and More stimulus may be injected due to weaker performance in Eurozone.
UK POUND: UK PMI DATA
GBPCAD hits the retest area of the symmetrical Triangle pattern.
GBPCHF is moving between the minor channel ranges.
Eurozone PMI and Services PMI data were released this morning, and UK PMI data was also released along with Eurozone Data.
PMI data shows a mixed bag in the Eurozone and Shows stronger growth in UK Zone.
France
PMI data came at 57.3 from 58
Services PMI came at 56.4 Versus 57 expected.
The above France Reading shows weaker data in PMI.
Germany
Services PMI data printed above expectations as 61.5 printed versus 61 expected.
Manufacturing PMI came at 62.7 versus 65.9 expected.
Since February, the lowest reading shows in German Zone, and it is the main part of the Eurozone economy.
And in July month, PMI shows robust numbers and very strong as summer season and rapid vaccine progressing in the market, But August month shows weaker data than expected shows expansion mode.
And UK Manufacturing PMI beating expectations and Services PMI came at weaker data as 55.5 versus 59 expected due to staff shortages and Wage inflation increases from the effect of costs and Margin.
Due to this, GBPUSD moved higher as Nation wise lockdown was released in the UK, and Delta variants were under control mode.
Canadian Dollar: Canadian General elections
CADJPY achieved it’s Ascending Triangle Pattern target and starts to reverse.
CADCHF is hits the previous broken level of the minor ranging line.
Canadian Dollar fell more than3% last week as US Dollar strong mode after tapering news officially announced by FED Powell.
And September, Month Canadian general elections to happen, and Monetary stimulus may be changed and rate hikes sooner than expected, as Justin Trudeau stated the last meeting, in order to control the inflation rate in Canada.
USDCAD fall 2% from highs as corrections, and it may be again wake up after the Jackson Hole symposium.
Japanese Yen: Extended Lockdown in Japan
CHFJPY rebound from the retest zone of the previous broken descending channel line and the higher low area of new ascending channel.
Covid Situations are higher in Japan, and Japan’s PM Suga announced the extension of Lockdown until September 12; more control steps were taken to curb the infections rate in Japan and Increases Vaccination in all cities.
And JPY makes a good rally as fears of Delta variant spread in China and US Dollar benefitted from Pandemic.
USDJPY head towards north to 110.500 level of Previous resistance and now waiting for Jackson’s Hole Symposium meeting this week for JPY weakness to Strengthens based on FED View.
Australian Dollar: Services PMI data
EURAUD hits the higher high of the uptrend line and now the correction is going on.
PMI data for Australia came at 51.7 as Dropping Figure and Services PMI came at 43.3, indicating a slower pace of expansion in Australia.
Australian Currency shows downbeat versus US Dollar as a 3% fall in last week as Weaker Domestic data of Australia persists.
More Delta cases were found in New South Wales and Extended lockdown until September end as announced.
Tapering and Rate hikes are not seen in the near term by RBA and the Australian Dollar. Further Downsides are possible if not Delta variant controlled in cities.
New Zealand Dollar: China economy slowed
NZDJPY hits the previous broken horizontal support area – wait for reversal or breakout of this zone.
New Zealand Dollar stood on Weekly resistance of 0.68 last week, and because of the Delta variant, spread lockdown extended to 7 days.
Due to these scenarios, New Zealand Dollar Dropped 2% from higher last week, and US Dollar performed Well after FED Comments on tapering.
And this is a natural correction in the market from the 0.75 range because the market shows rally 1Year from April 2020 as 20% higher, hence now 10% correction to 0.64 is expected until 2021 end.
Now China is also facing a slowdown in the economy. It will affect the Exports of New Zealand.
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