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 investors would have been watching the PPI and Retail Sales out of the US to see if they would have shown some declines like in recent data releases. However, that was not the case this week, the PPI figures came in under expectation but the same as last month at 0.2%. Retail Sales jumped significantly from 0.00% to 1.3% but the USD didn’t seem to move on this information.
The UK Chancellor Jeremy Hunt released the details of the government’s budget which included tax rises and higher energy caps. This came after the CPI y/y rose to the highs of 11.1% up from 10.1%.
This could force the Bank of England to hike rates higher than expected.
USD Index Analysis
The USD pairs in general this week didn’t really see signs of movement this week. The price of the USD Index paused this week moving sideways which was a contrast to the week prior when we saw large bearish moves in the market. This could be the pause before seeing the continuation down to the 105.00 support.
Despite the release of the budget this week the price of cable also remained range bound. The price did at one stage try to climb above the 1.2000 handle but failed falling lower. This price however has remained above the 1.1800 level which is a positive sign for those long on the currency pair.
The USDJPY price also remained subdued this week despite price coming into the key support at 138.00. We expected to see a bounce around this level but the price only managed to climb from this level to highs of 140.00.
The price of USDCHF was one of the biggest movers of last week which was a sharp contrast to this week. The price did recover some of the losses from the week prior but compared to the bearish drop it was only a slight move higher. This could be a sign of what is to come in the future for this pair. A break below the current support of 0.9400 would open the door to sellers once again.
Did you see our GBPJPY Analysis? You can see it here.
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