UK Pound: UK GDP printed higher shows economy growth
GBPUSD has broken the Descending channel and the market has reached the Horizontal resistance areas.
UK GDP data came at 8.0% versus 7.5% forecast and 5.1% revised. This impressive UK data shows UK Pounds shows recovery in the market and economy growth
UK PM Johnson Going to lift the Plan B restrictions due to less impact of Omicron variant happened in the UK.
And UK PM Johnson, who attended the party meetings during lockdown time, has issues raised by their party members.
And new pressures arose for UK PM Johnson and Accepted his statement on gatherings during lockdown time.
On May 5, UK Elections are going to happen, and this may be a reason to step down UK PM from his seat.
Gold: Japan and Chinese Data came in positive numbers
XAUUSD Gold price is moving in an ascending triangle pattern and the market has rebounded from the higher low area of the triangle pattern.
Japanese Core Machinery orders are expanded at 11.6% versus 6.1% estimate.
This news shows Capital spending from Private firms’ significant interest and hopes for the economy to grow from the pandemic.
China Fourth-quarter GDP came at 4.0% versus 3.6% estimate; Industrial production grew by 4.3% compared to 3.6% estimate.
The overall picture shows the Second and third-largest economy performing best in the industry from the pandemic times.
And US Dollar performing in the correction phase and US inflation data at a four-decade year high. Inflation data makes support for gold prices to move higher in this time.
US Dollar: Goldman Sachs Downgraded the US GDP for 2022
USDCHF is moving in the Box Pattern and the market has rebounded from the horizontal support area of the pattern..
Goldman Sachs forecasted US GDP Growth for 2022 is 3.4% from the 3.8% forecast.
This downgrade due to Fiscal stimulus and the Omicron variant is the two main reasons behind it.
And US Banks Forecast of US GDP Growth rate at 5-6% this year 2022.
Anyhow Goldman Sachs predicted well above 1.75% trendline US Growth.
In US FED Meeting this month, tapering of assets at a faster pace and any earlier rate hike announcement will be expected.
US Industrial production fell by 0.10%
US industrial production fell by 0.10% when compared to the previous quarter. The reason behind this is Supply-side problem persists in Motor vehicles, and Spare parts declines at 0.30%.
0.30% Gaining in production of High-tech industries like Computers, Communications equipment and Semiconductors and Electronics Equipments.
Overall capacity utilization slipped to 76.5% from 76.6% in November month.
And Capacity utilization of high technology remains lower than Border economy-wide measures at 75.9% in December.
EURO: ECB President Lagarde Speech on economy and Policy
EURUSD is moving in the descending channel and the market has reached the lower high area of the channel.
ECB President Christine Lagarde said policy accommodation would continue until Inflation reaches the 2% target level.
And the Inflation increase is temporary in the View of the ECB, So no fears led to inflation rate increases around the investor’s view.
And US Retail sales came at -1.9% versus 0.0% expected and +0.20% previous reading.
Michigan consumer sentiment came at 68.8% versus 70 forecast and 70.6 previous readings.
Omicron variant is lower in US, UK and Europe regions make relief from pandemic and cases lower shows fewer fears on Covid-19 attack.
Canadian Dollar: Bank of Canada meeting forecast
USDCAD is moving in an Ascending triangle pattern and the market has rebounded from the higher low area of the triangle pattern.
The Bank of Canada monetary policy meeting will be held on January 26, and investors expect more hawkish moments.
The Omicron variant is more severe in Canada rather than the previous one.
This week December month CPI data will suggest the Bank of Canada do rate hikes or same rates to place.
And US Dollar showed good performances last year, and Canada shows better performance this year against US Dollar.
And Omicron Variant shows fewer fears around the Globe due to fewer deaths count in Globe.
Japanese Yen: Bank of Japan monetary meeting forecast
USDJPY is moving in an Ascending channel and the market has rebounded from the higher low area of the channel.
Bank of Japan scheduled a monetary policy meeting on Tuesday, and there are only low chances of doing a rate hike.
And Inflation is still below the 2% target in Japan due to economic activities being slower pace when compared to other developed nations.
Japanese Core machine orders came at 11.6% versus 6.1% estimate.
This data shows big private firms showing interest in capital spending in the market.
Last year Yen fell most against Counter currencies; this year may be expected to higher as a correction against its counterparts.
Tomorrow Meeting will show a minor impact on the Japanese Yen against Counter pairs.
Australian Dollar: China exports were up, and the Trade surplus was in the excess mode
AUDJPY is moving in the Descending channel and the market has rebounded from the lower low area of the channel.
And China’s GDP data for the fourth quarter came at 4.0% versus 3.6% expected, and Industrial production came at 4.3% versus 3.7% expected and 3.8% previous reading.
The Retail sales numbers came at 1.7% below the 3.8% forecast and 3.9% previously.
This reading came as positive after Chinese import data from the Export data are up in recent quarters.
Chinese trade surplus at USD 94.46 billion beats the expected USD73.95 billion.
Today’s Growth of Domestic data makes breathing sense for People Bank of China this time, as the credit crunch of Real estate players and Consecutive Defaults happened in the Real estate market.
And China activity of Zero cases in Covid-19 is strictly implemented in All regions of China.
Cut in Reserve requirement ratio RRR in Local banks of China makes more liquid cash to support the cashless times and Gives more loans to Borrowers.
Iron ore and Energy commodities are focused due to industrial production again ramping up to benefit the Australian Dollar.
New Zealand Dollar: New Zealand PM Ardern Speech
GBPNZD is moving in an Ascending channel and the market has reached the horizontal resistance area of the channel.
US San Fransico Fed President Mary Daly said the Omicron variant pushed the inflation rate to Top high in the US.
We soon expected rate hikes from FED this quarter after tapering assets were completed.
New Zealand PM Jacinda Ardern said we set to be cautious on Omicron variant, this signal whether an orange button or Green Button no one knows, still waiting for actions from New Zealand PM.
China GDP data showed 4.0% printed versus 3.6% expected and industrial productions came at higher numbers versus expectations.
And US Retail sales came at -1.9% versus 0.0% expected, and 0.20% previous reading and also Michigan Consumer sentiment came at 68.8 versus 70.0 expected.
And New Zealand Dollar slightly bounces from the Support area due to China’s domestic data ramp-up from the pandemic concerns.
Swiss Franc: SNB tested CBDC’s successfully at five major banks
GBPCHF is moving in the Descending channel and the market has fallen from the lower high area of the channel.
Switzerland Central Bank successfully tested the Digital currency system across Five major banks like Citigroup, Goldman Sachs, UBS, Credit Suisse and Hypothecary bank Lenzburg.
This Central Bank Digital Currency (CBDC’s) are perfectly transacted in Wholesales market during testing.
And Transaction of 100000 to 5 million francs will be transacted without counterparty risk as effectively tested by SNB.
And the Project name Helvetia is successfully done across Five banks, as said by Benoit Coeur, head of Bank for international settlements Innovation Hub.
While Retail CBDC’s are used for Households and Business people for everyday transactions, Wholesales versions are used for major central banks transactions settlements for large scale payments.
CBDC is designed with more security options, and Every time after transactions receipt will be generated.
Central Banks like Hong Kong, Thailand, UAE, and Singapore now looked for doing CBDC’s for Wholesale cross-border payments.
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