EURUSD, Gold and Crude Oil set to resume a Bullish movement.
EURUSD had remained Bullish since the month of August. This has been due to increase in Economic growth. There have been positive signs coming from Germany. Factory Orders were up 24.4% in July, while Industrial Production in the same period increased by 5%. EU Gross Domestic Product was upwardly revised to 2.2% QoQ in the second quarter. The down note came from the ZEW Survey, as Economic Sentiment shrank to 26.5 in Germany and 31.1 in the EU in September. Presently, the ECB has shifted its target for inflation till 2022 and “recalibrated” its Pandemic Emergency Purchase Program. This is a very positive news for Euro. Equally, a tightening of Eurozone monetary policy is edging closer and that means any stronger than expected activity or inflation figures are more likely to boost the Euro than weaker than predicted data are to weaken it. With this month‘s meeting of the ECB’s policymaking Governing Council now out of the way, there is little to stop the Euro from appreciating as tighter Eurozone monetary policy draws closer.To get more news about
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The prices of Gold has witnessed a short decline last week with a strong dollar performance. However, the precious metal is expected to resume its previous Bullish momentum as the spread of the Delta Variant of the Covid has further increased in the US affecting Economic growth. Equally, the approaching Indian festive season will further create higher demand for Gold as the precious metal had always been the chief ornament used during this celebrations. We expect to see gold trading above $1800 this week with all eyes at the next resistance at $1830 on the wider outlook ahead of the festive season approaching.
Crude oil is currently set for a break out from the present region. However, with the increasing cases of the Delta Variant of the Covid, the demand for Crude Oil may dwindle. This week's inventory on Crude Oil will determine the direction of this break. Generally, there is a mixed sentiment with greater probability that the bulls may dominate. The next resistance for Crude Oil is at $74 per barrel. Alternatively, should the break out occur at the downside, the next support to watch out for is at $61 per barrel.
