The #Forex Market Wrap is here!

Watch the video to learn what key levels have been hit this week!

Forex Market Wrap

In the major news announcements the Bank of England surprised the market by hiking interest rates to 0.25%. A lot of investors were expecting a hold at 0.1% due to the growing rate at which Covid is spreading in the UK. This news came after the Federal Reserve left rates unchanged at 0.25%. They did however double the amount of which they taper from $15bn to $30bn. 

In other news the Australian employment numbers jumped significantly and unemployment dropped. This saw the AUD rally against its weaker counterparts. 

USD Index

As we can see from the chart above the price of the USD index has remained within its tight trading range. We were looking to see if the news on Wednesday would have decided a direction from the market but this was not to be. Instead the price did initially break the highs of the range however, quickly fell back below into the range and to the other side. We will still need to wait to see if the bearish seasonal pattern will play out or not. 

GBPUSD

The GBPUSD price jumped above the major 1.3300 level this week due to the BoE announcement. However we have seen the price pullback to the breakout highs now. If buyers step in here we could expect the market to rally and break the 1.3400 level.

GOLD

Gold prices were one to watch for us going into this week largely due to the amount of data that was coming up for the week. Often when we see large news weeks investors will look to hedge any potential risk by moving capital into the commodity. Not only this but the price action was suggesting an impulsive phase was coming. The low ranging weekly candle offered the opportunity to buy the commodity as the price climbed back above the weekly lows. 

Want to see our previous week ahead analysis? you can see it here.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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