EUR/USD: The euro fell against the dollar but remained not so far from a monthly high on Friday because of US economic data which showed growth in U.S. consumer spending in June. Mass vaccinations against COVID-19 increased demand for travel and services. However, America’s inflation has already exceeded the 2 percent target.
In general, the currency seems to be taking a wait-and-see attitude for further serious moves. It is possible that a new balance of currencies will be established around these levels, but this is hardly a bullet for a long time.
GBP/USD: The pound is likely to continue its gains against the dollar as the number of infections in the UK decreases. Although the number of infections is still quite high, it’s still decreasing. And due to the vaccination of a large number of the UK population, the number of deaths is negligible, even with the new strain of the virus. It is likely that soon the currency pair will take the level of 1.4004.
XAU/USD: Latest data from Reuters analysts confirm a further increase in gold prices this year. Gold may rise in price, among other things, due to high inflationary expectations. In particular, this is indicated by the falling US bond yields. Investors are getting out of them and buying gold amid concerns that the US Federal Reserve raises it’s rate. Gold price could be $1835 in the third quarter and $1841 in the fourth quarter of 2021. Further strengthening of gold can be expected after a slight correction and breaking through the level of 1830.