Fundamental analysis GBPUSD, EURUSD, NZDUSD, AUDUSD, USDCAD, XAUUSD, Brent, WTI for 11.11.2021

Wednesday's release of macroeconomic statistics on consumer prices provided substantial all-round support for the dollar. Consumer prices soared 6.2% in October and core inflation jumped 4.6%. Both were the highest growth rates in thirty years. It now seems clear that inflation is not a temporary phenomenon. The Fed has no choice but to force a tightening of monetary policy. Investizo is getting more and more convinced that we will see three rounds of key rate hikes in 2022.

EUR/USD was so low in July 2020. The downward momentum is very strong and a positive publication on the U.S. labor market on Friday will be enough to renew the yearly highs. Another important topic for the European currency is the signals of monetary policy revision. The global inflation rate against the background of the economic activity restoration has already created conditions for closing of the QE in Eurozone. The influential economists, including the head of the Australian regulator, have been talking about it for a long time. Moreover a number of the ECB officials allow tightening of the monetary policy in 2022.

GBP/USD plummeted amid a stronger dollar. Today, additional pressure on the pound was put by weak UK industrial production, GDP and trade balance releases.

NZD/USD and AUD/USD are moving towards September lows. The volume of long positions in currencies with high beta coefficient declined sharply last week. In addition to the strong dollar the New Zealand currency is weakening due to the difficult epidemiological situation. The Australian dollar feels additional pressure after the disappointing jobs report. USD/CAD is testing the strong psychological level of 1.2600 and the pair is likely to continue rising until the end of this week.

Brent and WTI did not maintain the momentum gained at the beginning of the week, despite the major US inventories decline. OPEC has lowered its demand forecast due to high prices, while the USA is likely to start selling "black gold" from its strategic reserves.

Gold is the only trading instrument that rose on high inflation risks. XAU/USD has consolidated above 1850 and still has high upside potential.