GOLD
Gold has broken the bottom level of the major uptrend line first, next the gold price has broken the bottom level of the descending channel (consolidation range).
Gold prices tank about 2.5% yesterday after FED open talks about rate hikes 2 times will be done in the 2023 year.
And Most anticipated Tapering bets will be done soon in next year-end, and US Dollar cheered by 1% and US 5 year and 10-year surges more than expected.
Gold again came inside the channel and move towards 1750$-1700$ once again is expected at 2 months.
US Dollar price initiated the gold prices fluctuations once FED gives the signal for controlling asset purchases then Need for safety is not required in people’s mind.
Inflation numbers also get controlled by a small period until waiting for patience.
USD
Head and Shoulder pattern formed in AUDUSD. now the price reached the neckline of the pattern.
US Dollar made higher about 1% yesterday after FED view on rate hikes twice in 2023.
US Treasury Janet Yellen may find proper Budget according to Joe Biden’s more spending plan.
And tapering of asset purchases may happen sooner than later as More inflation number will rise in another small period and then set to a stable mark and not fear about Inflation reading in the higher path.
FED closely watched on inflation and employment rates, if needed, tapering assets then definitely gets implemented by FED.
Next year will be a bright
In yesterdays Fed Powell Speech, Next year will be a bright year for the US economy and most sectors will be up and the employment rate will send lower. Causing significant jobs created and the Risk of inflation pretty higher than we think.
FED will not give the same set of Fiscal support in next year, once the crisis recovered Government will do in own business concentration.
US Rates are maintaing-0-0.25% until 2023 as Powell Told.
EUR
EURUSD has broken the bottom level of the downtrend line and it heading the next support levels 1.1850 and 1.1720.
EURUSD makes fresh lower to Lower Low after yesterday Hawkish tone from FED Policy settings and FED may give two rate hikes in 2023 as FED members told yesterday.
This brings cheers for the US Dollar index and rose to 1% and other peers Got down by 1% down like EUR, GBP and AUD, NZD.
The main reason is the Hawkish tone from FED after 1.5 years of expected speech in this meeting.FED Powell told Inflation rates higher as transitory and not stable.
Eurozone vaccinations are well progress and Domestic data performed well but the US Dollar strengthens makes Euro suffer lower.
GBP
GBPUSD has broken the support area and downtrend line.
After the past 1.5 months, the Consolidation market at the tough resistance level of 1.42200 came to the end in downside broke out in GBPUSD yesterday.
And it fell about 1% after the FED FOMC meeting happened yesterday.
UK makes another delay for lockdown releases puts pressure on UK Pound.
The Brexit issue in Northern Ireland still in Not hopeful by the UK and it will trigger tariffs on the UK by EU officials.
UK Pound declines lower as US Dollar continues strengthens and Hawkish tone from FED in last night.
GBPUSD may see correction up to another 2% from the current level to the 1.37500 range in 2 months.
CAD
USDCAD has broken the ascending channel and continues to surge with extreme buyers pressure.
Canadian Dollar fell most and US Dollar rose by 1% last day from 1.21500-1.22500 level.
And USDCAD targets 1.24500 in 2 months and CADJPY moved down to 88 levels as forecasted.
Bank of Canada Governor Tiff Macklem said there will be gradual Tapering assets will be Done based on domestic data to publish.
Oil prices surging day by day helped more Canadian Dollar and the economy.
JPY
EURJPY has broken the bottom level of the major uptrend line.
Bank of Japan may start Debating tapering stimulus in 2023 and a way to start rate hikes in 2023.
USDJPY making a correction from the major resistance zone. but still moving in an Uptrend Ascending channel
And may buy green Bonds soon than later as said by Former central bank executive Eiji Maeda said on Thursday.
USDJPY flourished to 110.800 level from 109.800 in single day 1% move after FED Powell& Co tell there is a rate hikes in 2023 is possible.
And Japanese Yen suffered more as Vaccination progress is very slow and more lockdowns made in recent days made more weakness to Japanese Yen
AUD
AUDJPY breakout and retest of the ascending triangle.
Australian Job data published several 115k jobs added versus 30k expected and strongest job numbers published since pandemic.
And the unemployment rate is dropped from 5.5% to 5.1% shows a strong drop fall in the employment rate.
This data will be very supportive for the Reserve Bank of Australia to keep asset purchases in controlled manner.
And FED plan to hike rates soon in 2023 is possible.
US Dollar continues stronger pace keeps Riskier currencies like AUD makes lower in market.
Iron ore prices surge and Copper prices in medium-term higher make Australian Dollar to weakness tone instead of Stronger tone.
NZD
NZDUSD has broken the bottom level of the Descending Triangle pattern.
New Zealand Q1 GDP growth printed at 2.4% versus 0.9% expected year on year basis.
The Strong Q1 GDP printed because of Strong manufacturing output and Exports of milk revenues helped most.
But still, travel and Tourism cause less revenue on lockdown moves in the last year.
And the Commodity prices like Copper and Iron ore helped most in New Zealand Dollar price surges and Housing prices bubbles created the basest for Surging for New Zealand Dollar.
CHF
USDCHF has broken the top level of the Descending Triangle pattern.
Swiss National Bank keeps interest rates steady at -0.75% and Forecasted GDP Growth of 3.5% in 2021 and expected a continuous economy in the second quarter of 2021.
New inflation forecasts at 0.4% in 2021 and 0.6% for both 2022 and 2023.SNB expected strong growth in 2022 and 2023.
SNB maintains expansionary monetary policy and it Favours financing conditions and contributes the supply of credit and liquidity to the economy.
Swiss France declines down to 0.50% from 1.22800-1.21 level in 2 days period.
