The #Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
Forex Market Wrap 3rd December
This week the market remained fairly range bound despite the important data we saw. Despite the Federal Reserve announcing they are looking to speed up the tapering process and stating that inflation is no longer ‘transitory’ the USD didn’t move much. The NFP was forecast to come in slightly lower however the numbers came in significantly below estimations at 210k. Average hourly wages also fell alongside unemployment. This left the USD range bound providing no clear directions. Seasonally, the USD underperforms through December however, with the risk off environment in the market, there seems to be hesitation amongst investors.
In this week’s week ahead analysis we identified the potential for the USD index to fall however, despite breaking last week’s low the market failed to make any significant moves. This could be due to the uncertainty in the markets and we would need some sort of fundamental catalyst to get things moving again.
The JPY market was one of our currencies to watch this week due to the risk off environment. The JPY usually benefits in uncertain times like we have currently and it did strengthen against the weaker currencies. USDJPY did reject the 113.80 level we highlighted in the week ahead analysis however failed to find further sellers beyond 112.50.
NZDJPY fell in line with expectations this week as risk off sentiment remained. This currency pair alongside CADJPY and AUDJPY reacted well to the sentiment in the markets and can often lead to some large impulsive phases. The price looks to be closing a strong bearish close and that could offer further trading opportunities going into next week.
WTI Crude Oil
Oil prices also dropped earlier in the week into the major $64.00 demand zone where we saw buyers previously enter the market. This could just be a momentary pause before continuing to move lower in line with the uncertainty in the markets.
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