Fundamental analysis GBPUSD, EURUSD, NZDUSD, AUDUSD, USDCAD, XAUUSD, Brent, WTI for 29.10.2021
On Thursday the USD was down against all major currencies on the release of weak GDP data for the third quarter of this year. Falling retail sales and a general drop in trade volumes pointed to a strong slowdown. In addition, the Federal Bank of Philadelphia had earlier published a downward forecast. However, the actual data turned out to be much worse than the negative forecast. The index slowed down from 6.7% to 2%, which caused the dollar to fall considerably.
EUR/USD has made new monthly highs and is now heading towards 1.1700. The ECB monetary policy meeting disappointed investors. The Governing Council will continue to buy 20 billion in assets every month under the APP. However, the pair received support thanks to the strong macroeconomic release in Germany and the general weakness of the dollar.
The British pound also benefited from the USD. The GBP/USD pair is currently consolidating near the strong psychological resistance level of 1.3800, the breakdown of which will contribute to the rise to the range of 1.3865- 1.3915.
The AUD/USD is approaching the three-month highs as economic activity in Australia continues to recover quickly after the pandemic. Friday's positive retail sales release for September may help the pair further up. NZD/USD is also one of the leaders of the intraday strengthening amid a growing investor appetite for risk. The USD/CAD was less volatile compared to last Wednesday when the Bank of Canada unexpectedly completely abandoned its quantitative easing policy. The head of the regulator said the Canadian economy is close to a full recovery. The Bank of Canada became the first major regulator to abandon QE.
Brent and WTI were strongly down after Iran announced the resumption of talks on a nuclear deal. Negotiations should take place by the end of November, but it will obviously take some time for Iranian oil to return to the market. It is also worth noting the interest of the European Union, which is looking for solutions to overcome the energy crisis.
The metals market is showing signs of recovery. XAU/USD again reached the level of 1800, with the volume of gold purchases increasing against the background of the rejection of the U.S. dollar as a "safe haven" asset.