Fundamental analysis GBPUSD, USDJPY, EURUSD, NZDUSD, AUDUSD, USDCAD, XAUUSD, Brent, WTI for 02.12.2021

The U.S. dollar is strengthening against major currencies this week, the exception is the Japanese yen. At the moment, macroeconomic statistics has gone into the background, more influence on the market have the actions of central banks. The Fed started to act more aggressively with the emergence of a new strain COVID-19. The head of the regulator Jerome Powell admitted that inflation will remain high for quite a long time, the official expects the price pressure to start to fall not earlier than the second half of 2022. Also the Fed wants to get rid of QE as soon as possible to prepare the market for the change of monetary policy.

EUR/USD as well as USD/JPY is popular among investors. The pair closed yesterday in the negative zone, however the European currency has a high upside potential. The inflation in Eurozone, as well as in other developed economies, is growing sharply, which increases the political pressure on the ECB. The Fed is actively using hawkish rhetoric, but a tightening of monetary policy in the U.S. is already embedded in the dollar. At the same time the ECB has been cautious so far and if Christine Lagarde announces that it needs to take steps to normalize its monetary policy, EUR will go up sharply.

The British pound has been trading in a steady downtrend over the past two weeks. GBP/USD fell on Wednesday amid the publication of UK manufacturing activity data. The index declined 0.1 basis points in November, with a neutral forecast. Tomorrow the UK will publish the composite PMI and service sector activity data.

AUD/USD and NZD/USD are also declining this week. Assets with high beta coefficients are not interesting for the market participants who want to limit their risks. Additional pressure on the currencies of the Pacific area was given by a decline in business activity in the manufacturing sector in China in November. USD/CAD was hit hard by falling oil prices and stronger dollar. Considering several cases of new strain of coronavirus in Canada, Investizo expects CAD to fall further..

Brent and WTI are showing recovery ahead of OPEC+ meeting. The emergence of Omicron led to a downward revision to the demand forecast. In addition the sale of strategic stocks by major oil consumers continues to put pressure on the hydrocarbons market. Today the major oil producers will discuss the possibility of adjusting production levels.

Gold weakened on Thursday, but held above support at 1771. Investors abandoned the XAU/USD in favor of the dollar, euro and Japanese yen.