Eightcap Trade Zone Weekly Market Wrap | FOMC, BoE, ECB, NFP, Forex, Indices, Gold, Crypto, & more
Welcome to this week’s Market Wrap. We lead with an overview of all the key data, announcements from the Federal Open Market Committee (FOMC), the Bank of England (BoE), the European Central Bank, and Non-Farm Payrolls (NFP), as well as the latest news and updates from Forex, Stocks, Indices, Oil, Gold, and Cryptocurrencies.
It has been a mini rollercoaster so far. After a solid rally post-FOMC, we saw those gains tested on Thursday night as the USD made a solid comeback. The Fed raised rates by 25 pts and backed in more rises to some. The big question remains about inflation, but for now. It looks like it is continuing to drop.
Stock indexes mainly saw a solid week, with the Nasdaq firing back to life and European heavyweights continuing to charge higher. The DAX and CAC continued to be standouts in the group, and Meta news boosted the Nasdaq to levels not seen since September 2022.
The USD dived after the Fed but found new interest on Thursday night, pulling back most but not all of its losses. The UK and EU held their interest rate decisions on Thursday, and while we did see 50 pt rate hikes, the message didn’t support buyers, and we saw the EUR and GBP fall to the USD. The GBP has started to break its fast trend. Gold hit 1959 during the week but was caught up in the USD rally and finished sharply lower, back below 1915. Will we see a support hold or a new retracement form?
We didn’t touch on the Yen in today’s video, but it has been firmer to risk majors and the USD this week. Its best returns came against the GBP as it traded 2.30% lower.
Crypto has been firmer this week as inflation and renewed money in the NASDAQ seem to support buying. US inflation and interest rate policy have had a direct impact on crypto, and for now, as these look to be softening, we continue to see coins recover. Bitcoin trading back above 24k USD during the week.
We have US employment data and ISM Services PMI to end the week. The focus will be on the NFP, which is expected to come in lower at 193K. The opinion is that it misses further to the downside, which could set off a bigger reaction than if it beats to the upside. Average earnings are expected to come in flat at 0.3%, and unemployment is expected to increase a touch to 3.6%.
Weekly Wrap Video
Have a fantastic weekend.