Central bank rundown as AUDCAD sell bias opens up

 Trouble down under

On the face of it, there was not much change in July. No rate hikes are expected until actual inflation is within the 2-3% range and supportive monetary conditions (low rates etc) are to be maintained in order to support a return to full employment and for inflation to be consistent with this target. The labor market is still, like June's meeting, not expected to be tight enough to spur higher age growth (and therefore inflation with it) until 2024. The economic recovery is still regarded as stronger than 'earlier expected and is forecast to continue. The three-year yield target remained the same keeping to the April 2024 bond as its 3-year yield target instead of pushing it further down the line to the November 2024 bond. Bond purchases were extended until mid-November, but reduced by $1 billion a week. So, a more confident meeting on balance from the RBA.

The takeaway

The central scenario remains that the condition for a lift in the cash rate will not be met until 2024". The data the RBA want to see is inflation in the 2-3% range and spurred on by wages growth that exceeds 3%. A temporary spike in inflation is not stated to be enough to move the RBA for now.

COVID-19 resurgence

Headwinds now remain for the Australian dollar right now as the nation struggles to manage the rising delta variant. Australia's New South Wales Premier says that he will tighten COVID-19 lockdown rules in the worst impacted areas of Sydney. The sharp rise of the Delta variant has resulted in a number of strict lockdowns in Australia and that looks set to continue. The RBA is meeting next week and Westpac sees that the RBA may now increase their tapering levels to $6 billion per week.

This is especially the case with the recent dip in Iron ore prices this last week.

European Central Bank, President Christine Lagarde, -0.50%, Meets September

Dovish tilt in the context.

The meeting on July 23 kept interest rates kept unchanged and both the size of the bond purchases (PEPP) were unchanged at €1.85 trillion and AP purchases are continuing at the speed of €20 billion a month. Going into the ECB meeting there were expectations that, after the ECB's strategic review, the ECB would be revealing a more dovish hand. This was hinted at in the run-up to the meeting by Christine Lagarde who said that the PEPP could 'change' into something else. However, on Friday, July 16 a sources report said that, due to disagreement, the bond purchases would be left unchanged/not mentioned until September's meeting. This would have marked a shift from the June 10th meeting where sources piece revealed that three ECB board members were in favor of bond tapering.

'Marginal' disagreement

Christine Lagarde noted in the press conference that there was some 'marginal disagreement'.It was not surprising as within the GC are fiscal conservatives like Germany and the more liberally minded Italians, so getting an agreement was always going to be tough. Germany's Weidmann & Belgium's Wunsch opposed the ECB's new guidance according to Bloomberg/sources as it signaled a commitment to lower rates for longer. In addition to these two members, sources note that several more voiced objections due to the length of commitment and a lack of clarity. The ECB will accept an overshoot of inflation which they expect to be temporarily higher. Remember, they now have a symmetric 2% target. Some members wanted to aim for 'at least 2% inflation, not just 2% inflation.

The takeaway?

The ECB did not deny the dovish expectations, only disappointed with a lack of an action at their last meeting. It looks like setting up for a lower for longer message in September, but with internal disagreement. The path of least resistance is to see it as euro bearish until proven otherwise.

 Subscribe to #MoneyLifeResearch #GoldSignals #BestGoldSignals The Best Gold Trading Tips

4 Investment Strategies Before Trading in Forex Market

  

A forex trading strategy will help you to decide when to buy and when to sell a currency pair. This involves studying the fundamental and technical factors. So when it comes to choosing the best forex trading strategy, we would tell you that there is no single answer to this. All the forex trading strategies are unique and what might work for one investor might not work for another investor.

Things to be Considered Before Considering Forex Profit Strategies

While considering the best forex trading strategy for yourself, you should consider the following factors.

#1. Your Time Horizon

Are you investing for short-term, medium-term or long-term/

#2. Your Risk Bearing Capacity

What are the profit and loss targets that you have set in the forex market?

#3. Your Trading Style

Are you an Intraday trader or buy-and-hold trader?

After considering all of the above factors it is important to choose the best forex trading strategy that works for you.

Here is a list of trading strategies that work:

1. Price Action Trading

2. Range Trading

3. Position Trading

4. Trend Trading

For Profitable Signal and recommendation Contact us now

Rising oil prices boosted by rising stock markets and improved demand outlook

 [10:33 AM, 7/30/2021] +65 3165 7233: Oil prices posted their biggest one-week gain on Thursday, as investors expected strong demand.  New York crude oil futures rose 1.7%.  US stocks rose to record highs;  in the second quarter, US GDP growth was slower than expected and household spending posted its biggest increase in decades, highlighting demand for oil and other commodities;  Crude oil prices were also supported by a weaker US dollar.

 TD Bart Melek, head of commodities and equities strategy, said that there is almost no doubt that risk appetite has increased across the board, which is certainly boosting the market.

 Oil prices fluctuated in July and are likely to post a second-month decline since October. Rising production and a rebound in the new crown epidemic have put pressure on;  The spread of delta strains has led to the re-implementation of restrictions in some areas.  It is expected that global markets will remain tight into the end of the year.

 At the same time, investors are still paying attention to the financial reports of the US oil industry.  Although oil companies maintain discipline and focus on shareholder returns, rising oil prices can encourage increased production;  Rob Haworth, senior investment strategist at Bank of America Wealth Management, said that it is only a matter of time before output increases in the US, not that it will or will not;

 West Texas Intermediate September futures rose $1.23 to $73.62 a barrel;  Brent oil for September delivery rose $1.31 to close at $76.05 per barrel.  The contract expires on Friday.

[10:34 AM, 7/30/2021] +65 3165 7233: US dollar drops to one-month low on dovish Fed tone and weaker-than-expected US GDP data

 The US dollar fell to a one-month low on Thursday. A day before the Federal Reserve announced that the US job market still needed to "make some progress" before support measures.  economic support is withdrawn, the US dollar continues to gain momentum in a month has lost momentum.

 Edward Moya, senior market analyst at OANDA Americas, said: "The strength of the US dollar against the euro appears to be over, as the economy slows to make significant progress in the job market.  and the Fed seems a long way from scaling back its debt purchases."

 The US dollar index is still up 1.6% since the Fed's June meeting, after the Fed switched to a hawkish stance.  The US GDP data released on Thursday gave little support to the index.

 The data showed that despite the strong growth of the US economy in the second quarter thanks to large-scale government support, the growth rate remained lower than analysts expected.

 On Thursday, the US Commerce Department announced last quarter's quarterly GDP growth rate of 6.5%, much lower than the 8.5% forecasted by economists surveyed by Reuters.  .

 Simon Harvey, senior forex market analyst at Monex Europe, said, “Due to the stability of the risk environment and the market digesting Fed Chair Powell's dovish remarks yesterday, the dollar  The US dollar was under pressure today and interest rate GDP growth in the second quarter was almost two percentage points lower than expected.  This has barely alleviated the pressure on the dollar.

 “If the yield curve continues to slope slowly and risk appetite persists, the dollar decline could accelerate over the next few weeks,” OANDA’s Moya said.

 Subscribe to #MoneyLifeResearch #GoldSignals #BestGoldSignals The Best Gold Trading Tips

📕 Comment on Gold on 30/07/2021

In yesterday's trading session, precious metal Gold rebounded quite strongly, the price increased from 1806 to 1832 ($26) and closed with a bullish candle around 1828. With a breakout of the multi-day accumulation zone recently.  If it goes up, it is likely that in the coming time, the main trend of precious metal Gold in my opinion is to increase, so we will be inclined to buy up.

Switching to the shorter-term timeframe H4 we can see that this precious metal is currently facing a short-term resistance around 1830-1834.  Here, I think the possibility of precious metal Gold will correct slightly so we can continue to go up so we can establish a short sell position here and wait for a signal to buy up.  Gold precious metal's support zone in turn will be around 1823-1815.

Get more information: https://www.moneylifeconsulting.com/