Hello traders! Another dynamic week has passed in the world of Forex, and as always, we’re here to break down the key economic events that shaped the markets.
Recapping the last week
The Reserve Bank of Australia unveiled its Monetary Policy Meeting Minutes, shedding light on its economic perspective. The highlight? A slight outperformance in the Wage Price Index q/q, ticking up to 0.9%, against an anticipated 0.8%.
From the United Kingdom: Employment seemed to take a hit with the Claimant Count Change showing a spike to 29.0K, a number surpassing previous expectations. On the inflation front, the Consumer Price Index (CPI) y/y revealed a slight dip, settling at 6.8%, which still indicates an environment of heightened inflation.
Meanwhile, in Canada: Inflationary trends continued to be the talk of the town. The monthly Consumer Price Index (CPI m/m) registered a substantial climb to 0.6%, exceeding market predictions. Both Median CPI y/y and Trimmed CPI y/y remained consistent, echoing the steady nature of Canada’s inflation scenario.
From the United States: Mixed signals came through. Retail Sales m/m showed resilience with an increase to 0.7%, surpassing market expectations. Conversely, the Empire State Manufacturing Index presented a shocker, plummeting to a concerning -19.0. As for the job market, the weekly Unemployment Claims figures gave a bit of relief, clocking in at 239K, marginally below the previous week’s number.
And from the lands down under – New Zealand, Monetary policy stayed in the spotlight. The Reserve Bank of New Zealand (RBNZ) maintained its stance, keeping the Official Cash Rate unchanged at 5.50%. Insights and updates from their Monetary Policy and Rate Statement were further elaborated upon in the press conference.
A Glimpse into the Technical Landscape
In the FX arena, the US Dollar emerged as a powerhouse this week, pushing most major currencies into a retreat. The AUD and NZD pairings faced the brunt, registering the steepest declines.
This Dollar dominance didn’t just ripple through currencies; commodities felt the pressure too. Notably, Gold and US Crude Oil faced downward pressures, trending lower.
Over in the digital realm, cryptocurrencies took a sizable hit, moving considerably southward.
Lastly, global stock indices continued their descending trajectory. As we wrap up this week, the looming question on every trader’s mind is – will the upcoming week usher in a recovery?
In the charts below, we see the strong correction in the global indices, strong trends in JPY pairs and Gold and Bitcoin closing lower heavily.
What to Watch Out ForNext Week
Keep your charts ready and your trading strategies in place as the week promises a slew of data:
Europe will be in focus with Flash PMIs from both France and Germany, indicators that provide a preliminary glimpse into the manufacturing and services sectors’ performance.
The UK will release its Flash Manufacturing and Services PMI, giving traders insights into the short-term economic trends.
The US keeps the momentum with the release of its own Flash Manufacturing and Services PMI. Moreover, the recurring weekly Unemployment Claims will be on the radar, along with the Revised UoM Consumer Sentiment.
In summary, the markets continue to be influenced by a blend of monetary policies, employment data, and economic indicators. As always, staying informed is key.
Until next week, trade wisely and stay tuned with FXGlobe for your weekly market insights!