Fundamental analysis GBPUSD, EURUSD, NZDUSD, AUDUSD, USDCAD, XAUUSD, Brent, WTI for 21.10.2021
The U.S. stock market continues to strengthen. More than 85% of the companies in the S&P 500 posted strong third-quarter earnings reports. Big business in America is recovering quickly despite the pandemic, rising prices, and supply disruptions. This means that the Fed was previously well prepared for changes in the market, with the situation clearly calling for a winding down of the asset buyback program. At the same time, the Beige Book points to a slowdown in economic growth in some U.S. states. The short-term outlook for economic activity remains positive, but some counties have worsened from the previous estimate.
EUR/USD is moderately strengthening this week amid investors' rejection of the dollar as a safe-haven asset. Short-term support to the pair was provided by a rise in producer prices in Germany. Today starts the summit of the EU leaders on which will be discussed a number of macroeconomic topics, including the energy crisis.
GBP/USD moderately declined on Thursday after the release of data on the industrial orders index. A slowdown in the index from 22 to 9 basis points, with a forecast of 18 points, indicates a drop in optimism among British industrialists. Additional pressure on the pair was given by the positive release on employment, as well as an increase in the secondary housing market sales in the U.S. in September.
Currencies of the Pacific zone AUD/USD and NZD/USD today updated their four-year highs and shifted to decline amid profit-taking. At the same time, both instruments retain high upside potential. USD/CAD is under pressure today amid falling oil prices and fewer initial jobless claims in the U.S.
On Thursday, Brent and WTI have demonstrated the biggest intraday declines in 2 months. Oil made a new 3-year high on Wednesday, which caused profit-taking and reversed its uptrend today.
Gold is still trading in a limited price range of 1765-1,795. The upward momentum in XAU/USD was hit today by a report from the U.S. National Association of Realtors, which reflected an increase in secondary market home sales from 5.888 million to 6.29 million in monthly terms.