The #Forex Market Wrap is here!

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

Forex Market Wrap Analysis

The most anticipated news was towards the end of the week with US CPI data beating forecasts and showing an increase in the inflation rate. Looking at the trading economics graph of the inflation rate for the past 22 years we can see that it is nearing the 8% level. Not only this but US 10YR Yields rose to 2% for the first time since 2019. This then saw many media outlets rush to suggest this could put pressure on the Fed to hike rates more aggressively.

USD Index

The USD Index shows the price has mostly consolidated as the market continues to digest the information from inflation data. If the market expects a stronger Fed move could cause the USD to gain strength again and a break above the highs then buyers may re-enter the market driving prices higher.

AUDUSD

The price of AUDUSD did break higher and looked to push towards the double bottom neckline area. The 4hr broke the trend, retested the demand zone we were featured in a previous video and saw the price rally. This could turn next week depending on how the market takes the inflationary data, a more aggressive hike from the Fed could mean a stronger USD is to come a move back towards 0.7000.

NZDUSD 

The NZDUSD price also rallied this week as the market continues to trade within the weekly retracement phase. The 4hr time frame formed a new high and retested the minor demand zone before seeing higher prices. For this to continue we would need to see the USD weaken and the stock markets move higher. This could turn next week if the market does begin to move into a risk off environment.

S&P500

The stock market this week looked to reject the minor resistance zone and it looks more likely to react negatively to the expectation of a rate hike. Typically, the S&P500 is negative before the Fed ends stimulus and begins to hike rates. Once the rate hikes are announced we should see a stronger stock market.

See our week ahead analysis this week? If not 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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