The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
Forex Market Wrap
The volatility in the market picked up this week after the US CPI data beat forecasts. The CPI came in above forecasts at 0.1% with Core CPI coming in at 0.6%. This surprised the market as it would push the Federal Reserve into hiking rates more aggressively in the future. The USD strengthened off the back of this data which was upheld until the mixed retail sales data was announced. The GBP weakened this week and was worsened by the unexpected drop in retail sales from 0.4% to -1.6%. This saw the GBPUSD price break the major swing lows of 1.1400.
The EURUSD price had a mixed week as the USD moved from weakness to strength. The price rallied early in the week ahead of the US CPI data. The price traded up to the monthly point of control and the major resistance trendline around the time of the news. When the news was announced we saw a drop of the price back below the key monthly value area low. Price is currently trading in a consolidation below this area now which could see the price break out.
The GBPUSD price breached the key monthly lows and major 1.1400 level for the first time in 40 years. Buyers were found below these lows and the price looks to close back above the level. Earlier in the week the price auctioned up to the high volume node on the weekly and monthly volume profile charts at 1.1713. The US CPI data then drove prices lower which continued with poor GBP data.
The USDJPY price ended up moving sideways within last week’s value area. The Bank of Japan this week talked of intervening which saw the JPY strengthen against the weakening currencies. Against the USD however it remained range bound. We highlighted the CPI gap that had formed this week and that price may want to fill this gap which was achieved throughout the week.
The USDCAD price was on our week ahead analysis this week as we saw a rejection of the channel highs and a yearly point of control. The price instead broke through the major highs and looks likely to continue that way as the risk sentiment shifts.
Did you see our Gold 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.