Fundamental analysis GBPUSD, EURUSD, NZDUSD, AUDUSD, XAUUSD, Brent, WTI for 28.09.2021

Today the U.S. currency is showing significant growth. Yesterday market participants began to increase the volume of long positions on USD, giving up risky assets. On Tuesday in the second half of the day, strong short-term support for the trading instrument was provided by the speech of the Fed head Jerome Powell. The official spoke about the economic recovery amid the pandemic. According to Powell, the sectors most affected by COVID-19 are recovering, the rollback of QE will start soon, and most importantly, high inflation is temporary. The Fed believes that price pressures will fall soon and inflation will stop at the 2% target. The Fed chief concluded by saying the regulator will do everything it can to continue U.S. economic recovery.

EUR/USD is trading near yearly lows, with 1.1650 being a strong psychological level. The rejection of the PEPP bailout has gone unnoticed since the difference in the monetary policy parameters between the U.S. and the European Union is large. In addition, the elections in Germany, which is the main economic driver of the Eurozone, led to a weakening of the EUR. Coalitions are not formed and political and economic vector is not clearly defined.

The British pound seems to have reacted just today to cautious comments from the Governor of the Bank of England, Bailey, who said that there is increased price pressure and that the economic recovery is slowing down. GBP/USD has consolidated below support at 1.3550, the last time the pair traded this low was in mid-January.

Investor interest in AUD/USD and NZD/USD weakened. The Aussie dollar rose on the news of the relaxation of quarantine measures in a number of large cities on October 11. If the plan is successful, Australia will show a significant economic recovery in the fourth quarter of 2021. USD/CAD is strengthening on the back of a strong dollar. The Canadian currency temporarily lost support from oil due to the correction in the price of the hydrocarbons market.

Brent and WTI crude oil on Tuesday once again made a new three-year high. Today's decline may be perceived as a technical correction. The weekly reports on U.S. commercial oil inventories are likely to be a driver for further gains.

The XAU/USD is still under pressure from the strong dollar, but the effect from the speech of the Fed chief will soon pass, and the issue of the US government debt and possible dissolution of the government will be a driver for strengthening the metals market.