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23.09.2021 Market Report

U.S. Federal Reserve

According to Bloomberg, Federal Reserve Chair Jerome Powell said the U.S. central bank could begin scaling back asset purchases in November and complete the process by mid-2022. Officials revealed a growing inclination to raise interest rates next year. Powell, explaining the U.S. central bank’s first steps toward withdrawing emergency pandemic support for the economy, told reporters Wednesday that tapering “could come as soon as the next meeting.” That would be on Nov. 2-3. The Fed also raised its 2022 inflation outlook to 2.2% from 2.1%.

USD/JPY: to slide towards the 107.36 mark

USD/JPY has bounced from the 109.12/07 lows. However, the pair’s upside remains capped below 110.25. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects USD/JPY to drop as low as 107.36.

GBP/USD: Failure at the 1.3571 July low to introduce scope to 1.3160

GBP/USD is attempting to stabilize at the 55-week ma at 1.3635. But as cable has already seen a dip below here, a decline towards the 1.3571 July low is expected, with a break below here to open up 1.3160, analysts at Commerzbank brief.

Gold Price Forecast: XAU/USD’s recovery to face stiff resistance at $1771

The Technical Confluences Detector shows that gold is struggling below immediate resistance at $1765, which is the convergence of the previous day’s low and SMA5 one-day. Gold price is attempting a tepid bounce but remains in the red for the second straight session ahead of the BOE monetary policy decision. The BOE could likely follow the Fed’s signal at tapering, in light of rising inflation expectations in the UK. However, the central bank decisions’ likely play a second fiddle to the persisting concerns over a potential default story of China Evergrande’s group.

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