GOLD
Gold XAUUSD is still moving in an uptrend. the market is consolidating at this higher zone.
Gold Prices gained over 1% in the last two days as US Dollar dipped to 1% in the last 2 days.
US Treasury Yields declined more as US CPI inflation data for May month is expected to 4.7% will reach. It is the highest reading forecasted since 2008.
And Higher CPI readings support gold prices to push higher as Investors are buying Gold in fear that Inflation might shoot up higher and Dovish rate prices.
By considering this scenario, FED may consider Tapering asset purchases to support US Dollar to more Downside Against Gold.
USD
USDCHF is consolidating at the support zone.
US Joe Biden does not want to play tariff wars on China But plays on a strike force to deal with Supply chains where the problems occurred for US consuming materials.
And the US fixed the committee to investigate within 100 days where the supply chain of semiconductors to rare earth elements imports gets demanded, and Imports are rising.
We must fix the issue at the Supply chain end, and This will suffer 60 Chinese companies not to trade with the US.
China will never take off the US in Trade matters as Biden Voices over China, and Supply chain concerns are now routed to clear means then US Businesses only rely on their Domestic materials.
The investigation started the overuse of Neodymium imports used in Motors and industrial productions, which is largely reliant on China.
This type of Supply chain problems controlled systematically will help avoid unnecessary imports from other countries and Domestic materials more usage in the US.
US Economy rebuilding
US Dollar index moved in the range-bound market as 89.500-91 level from Last 1.5 months.
Upcoming JOLTS opening report and Tarde balance numbers will drive further the US Dollar index.
Anyhow FED meeting is the main driver for the Broke out Consolidation market and moved to the Trend market.
Joe Biden plan of a $4 Trillion budget for 2021-2022 is beneficial for US Economy rebuilding, but Inflation numbers go higher as continuing to inject stimulus plans.
More US Dollar spending is much worry for Currency depreciation versus other currencies.
Considering the situation, hiking rate or spending less will strengthen US Dollar in the near term.
EUR
EURUSD is moving between the channel ranges for a long time.
EURGBP moving in a descending Triangle, wait for a breakout from this triangle.
ECB will see a Double act with FED expressions over monetary policy tools this week.
FED did not want to Taper asset purchases until 2022, and No rate hikes until 2023 are very clear by FED Powell.
And ECB President Lagarde purchases did not stop until 2022 as New Delta Variant is back on Economy.
And More PEPP purchases will be required to protect the economy, More Furlough schemes and Bank loan guarantees paid by ECB to sustain the economy over pandemic.
But ECB did not tighten monetary policy; if it gets tighten, the Euro will suffer more.
Inflation expectations rise over 4.7% in the US, but FED did not care about higher inflation numbers. Same Acting progress on ECB, Euro inflation triggered to 2% in May Month, this will not take care about by ECB and will go for further easing monetary policies.
More PEPP purchases will strengthen the Euro economy from Businesses losses and employment losses.
GBP
GBPUSD is consolidating at the higher high zone and major higher-timeframe resistance level.
UK and EU are aggressively talking about Northern Ireland over the Brexit deal agreement issue.
Talks delayed and postponed to Tomorrow; if the results are good, GBPUSD will give strengthens.
And New Delta Variant Covid-19 spread pushed problems for UK Government, and Set delays for Reopening Full economy by June 21.
But Brexit deal over Northern Ireland is a major issue, and UK Pound suffers more gains as no solution findings till on the Northern Ireland issue.
CAD
USDCAD broke the downtrend line and market-moving now in an Uptrend.
Canadian Dollar moved into the range-bound market as the Bank of Canada policy meeting held this week. But importance over July meeting is preferred because Monetary policy report over inflation and Growth will report in next Meeting.
Then Based on Jobs reports and Business outlook report in June, we will decide further tapering asset purchases by the Bank of Canada.
Bank of Canada will quickly decide on hike rates and Tapering asset purchases on July month monetary policy meeting.
USDCAD will find a range-bound market until the July monthly meeting.
JPY
USDJPY is at the bottom level of the rising wedge pattern.
UK Government is doubts over releasing full lockdown on June 21st as Delta variant introduced.
And Joe Biden said there would be a smooth compromise over the EU-UK Brexit deal on Northern Ireland Protocol. Therefore, EU Warns UK if Did not compromise Brexit Deal on Northern Ireland, there will be tough sanctions on the UK that EU Government must levy.
Japan Q1 GDP report of -1.2% expected in QoQ versus -1.3% printed on last month.
A better number will support for Japanese Yen and reverses if negative numbers printed.
AUD
EURAUD old resistance becomes new support and Ascending Triangle breakout, retest going on.
AUDUSD will reach 0.82 by 2021, as Westpac analyzed in the report.
Australia performing most dominant in Monthly account surpluses of 40 consecutive months and a record of 8 consecutive quarter of current account surpluses.
China trade with Australia is not better, as Taxes made higher by China to reduce the imports from Australia.
Due to these scenario’s Australian Dollar performed a weaker currency in the last 2 months among G10 peers.
And China encouraged more exports from Australia will be a plus for the Australian Dollar to improve.
And also, Vaccination is progressing slowly made Aussie Dollar lower in recent days.
NZD
NZDUSD is consolidating and forming a lower high, wait for a breakout from this consolidation pattern.
New Zealand Dollar moves in ranging market-0.71-0.73 from the last 1.5 months.
And US Dollar losses of 1% due to Last week NFP data missed expectations, and Janet Yellen supports Joe Biden plan of $4 Trillion spending plans.
Higher inflation will create rate hikes sooner in FED, and More tapering asset purchases is also possible.
US JOLTS Jobs openings and Trade balance numbers will fix further US Dollar direction in this week.
There was no fresher economic calendar for New Zealand Dollar listed this week; New Zealand Dollar moved based on US Dollar news this week.
CHF
CHFJPY broke the bottom of the uptrend line and now trying to retest the broken level. CHF JPY is in a strong uptrend anyway.
Switzerland Consumer inflation rise to 0.6% year on year May 2021 highest reading from June 2019.
The Main contributors are Housing and Utilities rise 1.3% from 0.9%, transport 4.0% from 2.8%.
And Consumer prices rose to 0.3% in May month from 0.2% in April month.
Swiss Franc is Depreciated in the last 2 weeks and now see trending aftermarket data reported.
US Dollar inflation, which was picked up to 4.7% expected in May, will push US Dollar down as a Dovish stance by FED.
USDCHF may see another correction 0.88-0.87 range by the year 2021 end.
