The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
The Forex Market Wrap: A Look at the Week’s Major Developments
This week, the Bank of Japan (BoJ) surprised investors by not tightening monetary policy, instead remaining dovish. This caused the Japanese yen (JPY) to weaken. This dovish stance was a deviation from the expectations of many analysts, who had predicted a more hawkish approach from the central bank.
In other economic news, US Retail Sales data fell from -0.6% to -1.1%, while the Producer Price Index (PPI) m/m fell from 0.2% to -0.5%. These numbers indicate a slowdown in the US economy, which could weigh on the US dollar (USD) in the coming weeks.
The USD Index remained range bound this week, staying above the key support level of 101.50. The market could break higher if sellers fail to trade below these lows. This could be a positive development for the USD, which has been under pressure in recent weeks.
One currency pair to watch this week was AUDUSD. The Australian dollar (AUD) had been showing strength in the market, but this week, the price fell back towards the previous highs. The AUD did find short-term support at these levels, however.
Another currency pair of interest was USDJPY, which saw the previous swing lows at 131.00 hold as resistance after the data from the BoJ. This level could be key to watch in the coming weeks, as a break above it could signal a stronger JPY.
Finally, the price of Gold traded above the highs of $1910.00, but failed to break above this level with any momentum. The direction of the USD Index will be important to watch for traders, as it could dictate the next move for the price of Gold.
Overall, this week saw a number of key developments in the forex market, with the dovish stance of the BoJ and weak economic data from the US being the major drivers of movement. Traders will be closely monitoring the USD Index, as well as the AUDUSD and USDJPY currency pairs, in the coming weeks.
Have you watched our NZDUSD 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 with your quick account setup for any future concerns. Start trading with Blueberry Markets today.