EUR/USD: The euro fell against the dollar on Wednesday after comments from the officials of the US Federal Reserve on interest rates. Bullish comments on the U.S. economy triggered a rebound in the dollar and turned currency market’s attention away from the release of an unexpectedly weak private employment report. Market focus now shifts to Friday’s U.S. non-farm payroll report with economists in a poll forecasting almost 1 million increase in jobs. If the market expectations are confirmed, the dollar will strengthen, which will lead to a decline in the euro.
XAU/USD: Gold is falling due to the strong dollar and cautious investor sentiment. Market sentiment is deteriorating ahead of events such as data on the spread of Covid-19 in Asia and the United States. Now all attention is focused on the Bank of England’s policy decision, Initial Jobless Claims in the United States and new data on COVID-19. The Fed’s official position returned to the topic of reducing support for its economy. After this news, the market is likely to decide where it will move next in the medium-term – up or down.
BRENT: Oil prices fell for the third day in a row due to the unexpected increase in US oil inventories and a negative US economic report. Traders also have concerns that global energy demand may come under pressure due to the spread of Delta Covid-19. Brent crude futures fell 2.8% while WTI fell 3.4%. Despite the above, high demand for oil from US consumers, as well as the efforts of OPEC+ to maintain balance between supply and demand on the global oil market can bring the buyers back to the market at any time. For this reason, we recommend considering long positions.