The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
FOREX Market Wrap Analysis
This week all investors’ eyes were on the US CPI data at the end of the week to see if the Federal Reserve’s hikes have had an effect on the rising inflation rate. The CPI figure came in at 1.00% above forecasts of 0.7%. This had a negative effect on the stock markets, as this would mean the Federal Reserve would continue to hike interest rates aggressively. In other news, the RBA hiked interest rates above forecasts to 0.85% and are likely to front run rates further. The ECB left rates unchanged but declared they would hike rates by 25bps in July with more planned towards the end of the year.
The AUDUSD price was on our watch list this week for two possible reasons. First we wanted to see if the recent Australian Dollar strength was in line with the strength meter and the rate hike to come from the RBA. Initially, the price of AUDUSD did rally on the news however, the risk faded in the market quickly giving risk currencies like the Australian Dollar no momentum. The point of control at 0.7185 was the level to watch for us this week as we felt if the price traded below this level we were likely to see further downside towards the untested point of control at 0.7084.
The GBPUSD continued to fall this week after trading through the value area low of the weekly profile. After this the direction was likely to continue to move lower and the price retested the weekly point of control numerous times before the price broke though the key lows and low volume levels around 1.2420. This is due to the recent inflation data out of the US and if the USD continues to strengthen which is likely we could see this pair continue to trade back towards the 1.2200 lows.
The NZDUSD price also continued lower this week, we highlighted this in a previous video on the channel. Again, we saw price break through the value area low on the weekly ofile and the price continued to trade lower. Buyers stepped in at the major low volume area but this was short lived with the price breaking this and continuing to move towards the major untested point of control around 0.6355.
The S&P500 was also one to watch heading into this week as the weekly profile showed an evenly distributed week. When we get these types of profiles form we can often see a significant breakout. The US data helped drive the market lower this week with the stock market dropping over 6%. This will likely continue as the market has reacted negatively to rising inflation over the recent months.
Do you trade USDCAD? See our latest analysis on the forex pair here.
Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you from your quick account setup to any future concerns. Start trading with Blueberry Markets today.