Technical Analytics Report

Daily Analysis Report : 16 Dec '2021


The European currency is showcasing unchanged market movements against the US dollar within the Asian session, combining close to 1.1300. Market activity remains unaffected as traders are looking forward to the publishing of the results of today’s meeting of the European Central Bank (ECB) about the rate of interest. It is presumed that the European regulator will not modify the present parameters about monetary policy, but the present and updated forecasts and comments from officials will be really important, especially because the US Federal Reserve has restricted its rhetoric. Yesterday the American regulator increased the pace of reduction of the quantitative easing (QE) program, planning to finish it in full by March 2022. Within the Next trading year, the US Fed is also assuming three rate hikes by 0.25 basis points, depending on the nature of the growth of the rate curve will be based on the volatilities of the labor market. The macroeconomic statistics which was published from the US the day before showed little disappointed investors, In the end not allowing the dollar to combine at fresh highs in the local market. Retail Sales in November fell gradually from 1.8% to 0.3%, while market forecasts assumed a slowdown to only 0.8%.


The British pound is trading combined against the US currency within the morning trading session, holding really close and centered to highs from the local market on  December 7. Today investors are looking forward to the results from the meetings of the European Central Bank (ECB) and the Bank of England, and activity in the market remains a little low. In the meantime, traders are aggressively discussing the minutes of the US Fed meeting, released on the previous day. The American regulator is expected to increase the speed of cutting down the quantitative easing (QE) program, hoping to begin raising interest rates a little quicker in the year 2022. Within the same time frame, the Chairman of the US Fed, Jerome Powell, emphasized that the regulator will be taking steps further in tightening monetary policy precisely, on achieving full employment within the American labor market. Extra support for the pound on the previous day was provided by optimistic macroeconomic statistics from the UK. The Consumer Price Index increased to 0.7% in November after rising to1.1% in October. Real Market movements turned out to be a little higher than the slowdown that was expected to be 0.4%. Every year, consumer inflation increased from 4.2% to 5.1%, also taking over the forecasts of 4.7%.


Within the Asian trading session, AUD/USD will go down slowly, holding really close to the highs of the local market from December 10. On the previous trading day, the instrument has shown positive market movements, despite the expected decision of the US Federal Reserve to increase the reduction of the quantitative easing (QE) program, which could potentially lead to rapidly increasing interest rates in the US. The final decision was no surprise, as it can be quickly traced in the rhetoric of officials, and therefore the reaction of the American currency was stopped. Investors were really concerned about the sudden decline in US retail sales in November from 1.8% to the level of 0.3%. Presently, the instrument is supported by the statistics upon the labor market from Australia. The Employment trends that are Changing in the country in November by 366.1K after a reduction of 46.3K in the previous month. Analysts calculated more on the modest growth of 200K new jobs. Within the same time frame, the Unemployment rate for the same time period decreased sharply from 5.2% to 4.6% with the forecast that was predicted to fall to 5.0%.


The US dollar showcased unpredicted profits against JPY within the Asian trading, testing close to 114.00 reaching to breakout. USD/JPY is constantly updated from local highs from November 26, receiving constant support from the outcomes of the US Fed’s meeting held on the previous trading day. The regulator made the quite expected decision to increase the reduction of the quantitative easing (QE) program, which may now be duly completed by March 2022. The Chairman of the US Fed, Jerome Powell, noted that the national economy does not depend on such significant incentives, but the regulator constantly monitors the situation as there are exposed risks. In addition, the official mentioned that the beginning of the rate hike is sure to happen after the US labor market attains full employment. Macroeconomic statistics published today in Japan did not provide any tangible support to the yen. Export volumes in November rose by at least 20.5% after increasing by 9.4% in October. Imports were added by 43.8% after rising 26.7% in October. The trade deficit in November increased from 68.5B to 954.8B yen.


Gold prices are showing improvising gains within the Asian trading session, again testing close to 1780.00 for attaining a breakout. On the previous day, the quotes of the asset went down sudden;y and were updated against the local lows of October 12 against tightening of monetary policy by the US Federal Reserve. As expected, the Chairman of the department, Jerome Powell, announced an increase in the pace of the withdrawal of the quantitative easing (QE) program from 15B to 30B dollars in a month, which will allow it to be fully completed in March 2022. Above this, the regulator will slowly revise its plans for the rates and are now expecting three increases in the upcoming year. In one way or another, gold cannot manage to combine at fresh lows in the local market, which is approximate to the end of the afternoon trading session, the instrument will completely step into the green zone. Today, the European Central Bank (ECB) and the Bank of England will be taking over the baton of regulators’ meetings, and the US will publish macroeconomic statistics on industrial production and the market movements of jobless claims.