The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
FOREX Market Wrap
The market was littered with high impact news this week including four central bank announcements. The week started with retail sales data out of the US which came in much lower than forecasted. This could be a sign that consumers are not willing to spend as much in the market. Later in the week the Federal Reserve hikes interest rates by 75bps above the forecasted 50bps. This was a reaction to the strong inflation data we saw last week.
The Swiss National Bank shocked the market this week by hiking interest rates by 50bps from -0.75% to -0.25%. This announcement came as a surprise to investors which saw the Swiss Franc strengthen significantly.
The Bank of England also hiked interest rates but by the forecasted 25bps to 1.25%, this left investors disappointed. The BoE has to find a balance between the rising inflation rate and the rising unemployment rates. Many investors have said the Bank of England has not done enough to support the UK economy.
The AUDUSD price whipsawed this week in line with the data announced. The price of the market fell initially as the USD strengthened, with the price reaching the major support and high volume level at 0.6880. This led to a rally in the market as the USD Index fell through a key support, this saw the price reach the high volume level of last week’s price action at 0.7048. Price continued to fall in line with the overall bias of the market and if we have a strong move into the close we could see this continue.
The GBPUSD price also had a high volatility week with the price ranging between 1.1950 and 1.2400. The price rallied towards the low volume areas around 1.2400 and found resistance in line with our bias for the week. This downward move could continue if the USD continues to strengthen.
The NZDUSD price continued on its path lower after finding support at the key 0.6200 lows. This support coincided with the USD Index finding a top and breaking through lows towards 104.00. The value area low from the previous week’s profile was the area of interest for sellers and we did see selling pressure begin from this point.
The US stock market continued to decline after the price dropped heavily into last Friday’s close. This recent bearish breakout could see the price decline further towards the major support at 3400.00. The Federal Reserve hiking interest rates aggressively didn’t help the stock market and with future plans to hike we could see this pattern continue.
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