Gold: US Domestic data stronger
Gold is consolidating at the lower high area of the descending channel for a long time – wait for the strong momentum to pick the gold direction..
Gold prices are lower as the Energy crisis happening all over the world. Demand for Yellow metal decreases as US Dollar demand increases.
And Fears of safety make investors park their funds to US Dollar, JPY and CHF as the most popular choice for investors.
And Demand for Gold is sluggish momentum, and China economic recovery is slowing down after the Evergrande crisis and the Covid-19 crisis, the Energy crisis.
This week US Job report makes support or declines to gold prices; analysts expected to come at positive numbers.
US Dollar: Global energy crisis supported US Dollar
Dollar index price is rising now after retesting the broken ascending channel line.
USDCAD is rising from an higher low level of an uptrend line.
US Dollar plays a Vital Role in the Global energy crisis. Demand for US Dollar moved higher as Globally consuming Oil and other commodities like Coal and LNG in US Dollar transactions.
And also, FED announced tapering soon in the middle of 2022 and rate hikes at the start of 2023 will give support for US Dollar.
There will not be any tapering or rate hike until Jobs Reports satisfies FED Goals this month.
Today Private ADP employment rate going to be announced, and the expected target to 440k Jobs; if it comes higher than expected US Dollar will keep higher.
And October 2nd week is the last week for the US debt ceiling expiry day, and Debate progressing, if not solved, then US Government Defaults to $28 Trillion as Joe Biden earlier stated.
EURO: Energy crisis in Euro and Finding solution by European Council
EURGBP is standing at the higher low and it is near to the horizontal support area.
EURCHF is standing at the lower low level of a descending channel and the horizontal support area.
Euro Area Facing Energy crisis more as Aid and Tax cuts as European Union Energy commissioner Kadri Simson said.
And the Energy crisis has slowdown Eurozone economic recovery.
We will install proper reform on Gas imports and Usages; supply and demand could be matched to avoid demand Higher.
And European Commission President Ursula Von der Leyen stated that the Energy crisis is a more serious issue to watch; we have to control it as early as possible.
ECB slows down the fears of inflation
ECB President Lagarde and team makes slowdown in inflation, increasing fears.
And Germany factory orders and Euro retail sales are moderate than expected shows slower inflation in the Eurozone.
ECB does not worry about inflation spikes fears in the near term, and no tapering is possible to do in the near term.
And FED will do tapering at Starting of 2022 because the inflation rate is above 4% in the US, But the EU makes lesser inflation as 1.9% below 2% target.
EURUSD makes lower as Energy crisis higher in Europe and trying to make a solution to solve the energy crisis.
UK POUND: Brexit issue sustain between France and UK
GBPNZD is making a correction from an Ascending channel.
Brexit news became hot between France and UK on fishing rights, and France decided action plan on the UK from October 15.
France decided to Cut off energy supplies to the UK as They are interfering in Fishing rights.
And EU does not dependent on Gas prices to define electricity prices.
As Electricity prices are defined by the Cost of production and the Cost of Raw materials.
We need to remove tariffs between the EU and the US on Steel and Aluminium soon.
We need to smooth relationships with the US, and No tariffs are to sustain in the coming weeks.
We want the EU to be strong as an independent nation like China and the US; We did not feel dependent on the US and China for technology, as France Finance minister Bruno Le Maire stated.
Canadian Dollar: Oil Prices Rallying supported CAD
Crude oil has reached the higher high level of an Ascending channel – wait for reversal or breakout.
Canadian Dollar surges as Oil Prices moving forwarded to 80$ target as 2015 level. Due to the rise in inflation at the Global level, Oil, Coal and Liquified Natural Gas as costlier than ever during the winter season.
US Democratic Senator Elizabeth Warren expressed concerns over the actions of Fed Chairman Jerome Powell; higher inflation is transitory, but how long it will sustain and how long people tolerated inflation rates of Goods and Services.
And Fed may soon decide on inflation control in the market.
US inflation now reached 4%, and the US FED Goal of 2% touched above the current level, now FED Going to taper or rate hike soon if possible.
Japanese Yen: Stimulus requirement more in Japan
USDJPY is moving in an Ascending channel after retesting the broken resistance which act as a new support level.
Japanese Yen made lower against US Dollar and Demand increases as Energy crisis spread across Global level.
The new Japanese Government may take action on the Economy correctly and injected more stimulus than See the Japanese Yen recovery in the 2022 year-end.
And Vaccinations are slower, and lockdown more in Japan hurt most Businesses and the Unemployment rate.
US Debt ceiling issue is not over, and Still, Republicans cannot be allowed to pass the Bill of Debt ceiling extension.
The overall scenario seems JPY and US Dollar shows good demand in the market as Fears once again jitters by energy crisis and Real estate crisis in China.
Australian Dollar: Australian Trade Balance increases
AUDUSD has retested the broken descending channel and surging now.
Australian Trade balance surged to A$15 billion from A$ 10 billion expected.
Due to the global demand of the Energy crisis, Oil, Coal, and Liquified petroleum gas orders were higher in Australia.
Australia remains the largest exporter of Liquified Petroleum Gas and Coal. China now takes small imports from Australia as more energy crises happen in China.
And China banned coal imports from Australia in 2020 is notable.
Now the Economy of Australia is purely dependent on Export revenues of Commodities; last year, Iron ore demand made a spike in the Australian Dollar; this year, Coal and LNG made the Australian Dollar surge in 2022 middle.
New Zealand Dollar: RBNZ rate hikes Today
NZDUSD is moving in a minor descending channel range.
EURNZD is falling from the lower high area of the minor descending channel.
Reserve Bank of New Zealand monetary policy meeting held today and cash rate changed to 0.50% as 0.25% rate hike done by RBNZ.
And the rate hike was already judged by All analysts as Covid-19 recovery seems faster in New Zealand other than G10 countries.
And second, to Nore’s bank, RBNZ hikes the interest rate. But New Zealand Dollar seems no enthusiastic move in the morning.
Now inflation is above 4% in New Zealand, and the Labor market seems moderate and Covid-19 cases were decreased, and lockdown extended.
Now, wait for the next move by RBNZ based on approaches done by the Economy.
Swiss Franc: IMF Downgraded Global economic growth to below 6%
CADCHF is making a correction from the lower high and the horizontal resistance.
Swiss Franc posted stronger Upside winds in the market as Demand for CHF soars by investors as China Real-estate debt crisis higher.
And SNB will talk for further intervention in the FX market to consolidate the Swiss Franc as expected.
The Overvalue of CHF will create less demand globally, So SNB tries to FX intervention and brings it back to an average level.
The International Monetary Fund Downgraded the Global economic growth below 6% as July month fixed target; this decision comes from China Debt crisis, Energy prices higher and inflation higher worries makes the forecast for below 6% target.
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