The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
Forex Market Wrap Analysis
The news was light in announcements this week but we still ended up seeing a significant move for the USD. All investors were watching the US CPI data on Thursday to see if the Fed would begin to slow down the pace of tightening. CPI numbers fell unexpectedly showing further declines to inflation and giving the Fed the option to hike by 50 bps in the December meeting. This news was met by sellers which saw the USD weaken across the board.
In other news GDP fell in the UK for the second consecutive month to -0.6%. Last month’s number was revised higher to -0.1%. The Bank of England made comments recently saying the UK could be in a recession for 2 years.
USD Index Analysis
The USD Index had one of its worst performing weeks of the year with the price trading from 111.00 to 106.50. Earlier in the week the price looked to be holding at the key 110.00 handle. This was short lived as the CPI data saw sellers enter the market driving prices outside of the bullish channel and below the key 108.00 lows. It is clear that investors were waiting for the CPI confirmation before committing to shorting the USD. If this continues, the price could head for the next support of 105.00.
The weakening USD and bullish tone from the ECB have seen the price of EURUSD trade through major resistance levels. In the week ahead analysis videos we identified that buyers could be waiting for long opportunities above the 1.0100 level. Once price broke through these highs the market could reach the next point of resistance which is 1.0350.
The price of NZDUSD rallied as expected this week, in our week ahead analysis video we looked at the strength of the NZD and if that would see the NZDUSD price trade to the key 0.6000 level. The NZD remains strong in the market which saw the price find support at the 0.5870 handle and then rallied to and beyond the 0.6000 level.
The price of Gold rallied again this week trading through the key highs at $1730.00. This was fuelled by the US CPI numbers which caused the USD to weaken. If this is a sign of a change in trend then we could assume the price may continue to trade higher towards the next resistance at $1800.00.
Did you see our USD Index Analysis? You can see it 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.