The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
Forex Market Wrap
Surprisingly the Bank of Japan monetary policy announcement was the market mover for this week. The Bank of Japan is known to remain neutral on rates however that wasn’t to be this week. The Japanese Central Bank uncapped their 10-year government bonds from 0.25% to 0.5%. This surprise move strengthened the JPY across the board with some currency pairs moving over 600 pips in one session.
In other news the Canadian CPI data came in mixed, the CPI m/m dropped from 0.7% to 0.1%. The GDP data also fell from 0.2% to 0.1%.
The USD remained range bound this week between the 104.70 and 103.70 handle. The news seemed to have had little effect on the USD this week. However, this consolidation period the index is going through could suggest a breakout move is to come. A break below 103.75 would trigger selling opportunities. If the price breaks through 105.50 the buyers would look to get involved.
The price of cable was one to watch this week as the market looked to be heading out of a bullish channel. The lows of 1.2125 were expected to be broken if the USD strength continued in the market. Despite the USD ranging the price of cable traded through these key lows. If this momentum continues we could expect the market to trade lower.
The strength meter highlighted the opportunity to see the NZDUSD price move lower this week. It showed us the NZD was losing strength and the USD was in a reversal zone. On the weekly chart the price showed a rejection of the recent swing highs. This could see the price trade lower on trend opportunities. We identified the H4 chart for a breakout opportunity which saw the price trade down to the 0.6280 level.
The price of Gold remained below the $1800.00 level this week which could suggest a move lower is likely. Buyers are not being aggressive above the level which has seen selling pressure on any USD strength. Currently the market is trading within a consolidation pattern on the daily time frame. If the price was to break through the $1780.00 lows we could see further downside.
Have you watched our GOLD analysis? You can see it here.
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