Fundamental analysis GBPUSD, EURUSD, NZDUSD, AUDUSD, USDCAD, XAUUSD, Brent, WTI for 26.10.2021

The current week is filled with a lot of macroeconomic events. Reports on inflation and GDP in the US and EU, as well as three central bank meetings on monetary policy, will contribute to strong volatility in the market. The dollar was supported on Friday after the release of the personal spending stats. If GDP growth slows down in Q3 due to weakness in retail sales, high inflation will remain a strong reason to curtail QE anyway.

The U.S. currency is recovering this afternoon after strong reports on consumer confidence and the housing market.

EUR/USD is declining this week and is currently consolidating near the strong psychological level of 1.1600. Business conditions and sentiment have been deteriorating over the past 4 months. The current condition and expectations component has declined as supply chain disruptions have hampered the recovery in economic activity. The drop in industrial production, the bad business activity report, and the ZEW survey confirm the above-mentioned.

GBP/USD on Tuesday retreated from local highs after the US housing report showed a rise in new home sales from 702K to 800K in September. In addition, the consumer confidence index was positive, while analysts predicted a minimal decline.

Currencies of the Pacific zone AUD/USD and NZD/USD also declined in the second half of the day. At the same time, the interest of market participants to risk remains. A surge of economic activity after the lifting of the prolonged quarantine is observed in Australia, and the central bank of New Zealand continues to carry out the "hawkish" monetary policy, despite the increase in COVID-19 infections. The Canadian currency is one of the most attractive investments. USD/CAD is preparing for a new stage of QE reduction, and some experts suppose that the accelerated recovery of the Canadian economy will allow to raise of the key rate in March 2022.

Brent and WTI are preparing to renew their seven-year highs. Demand on the oil market significantly exceeds supply, while the parties to the OPEC+ agreement are not going to force an increase in production volumes.

Gold lost all the progress it made on Monday. XAU/USD is still unable to overcome the 1800 level, reacting painfully to strong US statistics and the rising hydrocarbons market.