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 was light in high impact events with only GBP and EURO with big data out. The GBP CPI figures showed an increase in inflation for the year which boosted the GBP in the short term. This news was forecasted and will likely fuel the Bank of England’s further hikes. Euro manufacturing and services PMI saw increases which was also forecasted.
The USD Index closed bullish this week but the price largely ranged. The USD rebounded as the Federal Reserve chairman highlighted that there are more rate hikes to come in the near term. The price remained within last week’s range forming a bullish inside candle, this could lead to an impulsive phase forming next week.
Despite the rise in inflation the GBPUSD price closed below the 1.3200 key level we highlighted in the week ahead analysis. The price failing to hold above this major level shows that buyers are losing momentum and that we could see another move back to the key swing lows.
The price of Silver reversed this week despite the strong seasonal pattern. The Bullish weekly close suggests we could see a move back to the previous swing highs. If the price breaks above the head and shoulders neckline the sellers could exit their positions and the price could move quickly through the zone.
The stock markets continued higher this week as the Federal Reserve Chairman Powell gave a hawkish speech and outlined more rate hikes to come in the near term. This could see the stock market rally back to the all time highs offering long opportunities on pullbacks. The price retested a minor demand zone and rallied further. Now the price has made new highs we could look for further long opportunities.
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