Gold: Yield curve steepens in short term bonds
XAUUSD Gold price is moving in an ascending channel and reached the Higher low area of the channel.
XAGUSD Silver price is moving in an Ascending channel and fell from the higher high area of the channel.
Gold prices are steep higher after US CPI reported a 6.2% reading came on Wednesday, and it much exceeded than 2% FED inflation goal.
So now, FED must take proper actions for controlling inflation. Otherwise, the inflation rate may be reached to 6.5-7.0% by the mid of 2022.
And now 5-10 Year yield curve flattened, 3-2 years makes belly curve, 2-5 years makes a steepened curve, this data shows FED may take actions sooner than previous history.
Gold is a clear hedge currency. Globally, any nation comes under crisis; first Gold is the safe tool to invest by investors, then JPY and CHF, USD.
US Dollar: Morgan Stanley forecasted US Dollar set to high in 2022
USDJPY is moving in the Descending channel and reached the lower high area of the channel.
US Dollar set to higher in the first half of 2022 is expected by Morgan Stanley company.
For this US infrastructure bill favour for building US Economy from Pandemic, and more vaccinations camps be provided.
As the US economy grows on one side and the other side, inflation prices are lifting on the other side.
So, FED will take proper actions on US Economy from inflation pressures in 2022.
And US Dollar is haven currency more buying for fears of crisis happening Globally.
Nut Now current situation shows CHF and Gold is the primary tool for Investors for continuing crisis in China, EU, UK and US.
EURO: ECB members speech
EURGBP is moving in an Ascending channel and the market reached the higher low area of the channel.
ECB Governing council member Simkus said inflation will fall in 2023 end as all we expected.
ECB Policymaker Olli Rehn said the Supply chain bottleneck issue won’t be solved until 2022 end.
Due to this, ECB will rate hikes 10Bps in December 2022.
EU makes a proper deal with UK and Speech going on between Two nations to solve Northern Ireland Protocol.
UK POUND: Brexit issues on Northern Ireland protocol
GBPCAD is moving in the Descending channel and the market now reached the lower high area of the channel.
UK Pound grounded losses as UK and EU relationship on Brexit deal on Northern Ireland issue.
And UK thoughts are mostly to separate Northern Ireland from the Brexit deal, But the EU would make retaliatory tariffs on the UK if the UK approved Article 16.
So, the next round of fresh talks between the EU and UK is set to happen on Friday this week.
Any positive news from negotiations will be positive for Both the EU and UK; if it reverses, it will be a hammer for UK Pound in the market.
Bank of England making plans for rate hikes in earlier 2022, because Domestic data performed well and inflation hits 5.0% is much-exceeding level from 2.0% Goal.
Canadian Dollar: Oil prices slumping worries for CAD
USDCAD has reached the Retracement area of 61.8% and the previous resistance area.
Canadian Dollar makes less impressive against US Dollar this week, and US CPI makes USD bull rally against Canadian Dollar.
And US President Joe Biden warned EU supports for Russia to plan for invading Ukraine. Military troops were set ready at the Ukraine border by Russian Troops.
Oil prices slumped as Ukraine Oil supply increased, and the EU prepared a meeting with Iran for supply increment.
If Russia fights with Ukraine and Iran makes a deal with the EU, oil prices will be set to decline.
And Canadian Dollar correcting long line rally in past two months.
Japanese Yen: Japanese Government less spending on the economy
EURJPY is moving in the Descending channel and the market fell down from the lower high and reached the Support area and lower low area of the channel.
Japanese Yen makes weaker after the Japan Government spending stimulus is not fulfilled needs of the economy.
And USD rallied against the Japanese Yen this week after the Japanese Government failed to impress the Japanese Yen.
US CPI data makes higher and impressive for US Dollar.
US Michigan consumer sentiment data is set to publish today, and the 10-year Bonds rate increased to 1.57%, up 0.70% on the Day.
Economy minister speech
Japan’s economy minister Yamagiwa said New covid-19 measures are helping to prevent the covid-19 spread.
And keep support for businesses and shops to open free from Covid-19 spread.
Wages are set to increase for Nursery and care workers in upcoming stimulus packages.
After that, we will decide on a proper stimulus for Energy costs because we did not predict the oil prices in future.
Australian Dollar: US CPI rate and Australian Domestic data affects AUD in medium-term
AUDNZD is moving in an Ascending channel and the market is rebounded from the Higher low area.
Australian Dollar sinks after US CPI rate increased higher on Wednesday, and 5year bonds yields rate rose to 1.27% from 1.08%.
And Chinese CPI also rose to 1.5% makes it more worry for Australian Exports.
More easing restrictions have been done in the Australian Border to support tourism and support outstation people travelling is eased.
The Australian Unemployment rate rose to 5.2% on Thursday makes it more disappointing for the Australian Dollar.
Now Domestic data underperformance makes a weaker tone for the Australian Dollar.
New Zealand Dollar: Manufacturing index came at higher numbers
GBPNZD is moving in an ascending triangle pattern and the market reached the equal heights area of resistance and narrowing supports.
New Zealand Dollar has been in losses in recent days, but today, the manufacturing index came at 54.3 versus 51.6 in the previous month. And in the Following week Services index is expected in positive numbers.
And Domestic data performed well in New Zealand; RBNZ is the only central bank that did rate hikes last month.
The UK made Free trade agreement for exports, and this deal is beneficial for New Zealand to do exports to the UK.
Travelling restrictions are also eased for supporting tourism and revenue-boosting for the Tourism Centre.
Swiss Franc: SNB makes CHF stable in economy
USDCHF has broken the Descending channel and reached the previous resistance area.
Swiss Franc offers more stability and a safer way of currency to accumulate during crisis time.
And SNB said we provided expansionary monetary policy and kept our CHF Currency’s stability with proper actions taken on the Economy side.
Swiss economy growing gradually and aiming for stability in Foreign reserves.
FX intervention is like to use if CHF currency appreciated more.
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