Fundamental analysis GBPUSD, EURUSD, NZDUSD, AUDUSD, USDCAD, XAUUSD, Brent, WTI for 12.10.2021
The second half of this week is filled with a lot of important macroeconomic releases. Investors are cautious ahead of inflation and consumer spending data, as this data could have a strong impact on Fed policy. According to the U.S. Bureau of Labor Statistics report, the number of open jobs in the labor market was 10.439 million, almost 500 k worse than forecast. Despite the slowdown the released data can be characterized as neutral, which is confirmed by the narrow price range of the market.
On Tuesday the EUR/USD was under minimal pressure from the release of negative statistics from Germany's economic sentiment index. COVID-19, the recent elections as well as the energy crisis contributed to the decline in investors' economic sentiment, as a result, the ZEW index reading fell from 26.5 to 22.3 basis points.
The British pound suffered minimal losses but held above the psychological level of 1.3550. GBP/USD gained support after the Governor of the Bank of England backed the initiative of one of the officials to tighten monetary policy earlier. Thus, the regulator intends to reduce price pressure in the British economy. Labor market data released today was mixed and could not influence the dynamics of the pair. Tomorrow will release data on UK GDP and industrial production.
The Australian and New Zealand dollars have strengthened for four trading sessions in a row. Yesterday the AUD/USD gained momentum for growth due to the cancellation of social distancing measures. The proportion of vaccinated people in Australia has increased significantly, businesses are opening, and vaccinated citizens can once again use the service sector. All this should help the economy after four months of isolation. the NZD/USD is showing more subdued growth than the Australian currency. New outbreaks have led to the extension of quarantine in major cities, which limits the Reserve Bank of New Zealand's hawkish plans. CAD gained solid support thanks to Friday's strong Canadian jobs report. The pair USD/CAD ignored the correction in the hydrocarbons market but reacted lower to the U.S. Bureau of Labor Statistics report.
The price of Brent and WTI crude oil fell insignificantly but continues to hold near the highs since October 2018. The current trend can be explained by a correction of the uptrend.
Gold strengthened on Tuesday, reacting to US macro statistics. At the same time, the price range, as well as the trading volume on XAU/USD, remains limited and a significant driver is needed to form a stable trend.