Fundamental analysis GBPUSD, EURUSD, NZDUSD, AUDUSD, USDCAD, XAUUSD, Brent, WTI for 23.11.2021

The U.S. currency continued to strengthen on Tuesday. Yesterday U.S. President Joe Biden endorsed Jerome Powell to head the Fed. Thus, market participants received a clear signal to continue the current monetary policy. Meanwhile, several key members of the Open Market Committee are pushing for a complete rejection of QE in the first quarter of 2022. The realization of such a scenario increases the chances of three rounds of monetary policy tightening next year.

EUR/USD stayed in the positive zone on Tuesday. The publication of the positive statistics on the business activity in Eurozone in November was a surprise for the market participants, especially the growth of the index in the manufacturing sector looks surprising. At the same time the new wave of pandemic in Europe and the restrictions being implemented are likely to cause the main macroeconomic indicators to fall in the fourth quarter of 2021.

GBP/USD is declining today and is already ready to update the lows of the current year. The trading instrument is currently testing the key support level of 1.3350, the breakdown of which will contribute to the fall in the range of 1.3230-1.3270.

Pacific zone currencies AUD/USD and NZD/USD are also declining on Tuesday amid a strong dollar. The New Zealand dollar weakened amid a decline in retail sales in the third quarter, which can be explained by the worsening epidemiological situation in the country. At the same time, the Reserve Bank of New Zealand will hold its monetary policy meeting tonight. Despite the pandemic the macroeconomic indicators are normal, the labor market is growing and so is inflation. In the current situation the probability of an interest rate hike is very high, so some investors are counting on a 50 basis point tightening. The USD/CAD still has not overcome the strong psychological level of 1.2700. Today the growth of the trading instrument was limited by the oil prices recovery and decline in the U.S. services sector activity indicator from 58.7 to 57 basis points.

Brent and WTI showed significant gains today. US pressure on OPEC+ will not lead to production growth, as parties to the agreement lack the capacity to increase output. At the same time the President of the USA ordered to allocate 50 mln barrels from strategic reserves for sale.

Gold has been falling for four days in a row. Reaching the local highs, the speculative market refused to buy the metal. XAU/USD has consolidated below 1800.00. Investizo expects gold to fall to the level of 1760.00 within 1-2 days.