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Eightcap Trade Zone Weekly Market Wrap | FTX, CPI, Forex, Stock indexes, Gold, Crypto, & more

November 11, 2022
by Joseph Jeffriess, Market Analyst

Welcome to this week’s wrap-up traders. Instead of focusing on one market, we have done a walk-around in today’s video, taking a look at some of the key data, comments, and news that hit the market. We have also done an analysis walk-around, looking at #FOREX, #stocks, #indices, #oil, #gold, and #cryptocurrencies. What a wild week, from insane swings in crypto to rallies from stocks and risk currencies.

The week started with solid stock indexes and FX gains as markets continued from Friday’s momentum. By mid-week, things began to turn, and the week was definitely split into two groups. FTX crisis hit the crypto markets on Wednesday and carried over into Thursday as Binance pulled out of its non-US asset purchase deal. This had catastrophic consequences on the crypto market, which we have not seen for a long time. SOL, for example, plunged 47% lower early on Thursday’s session. FTX was one of the top five exchanges in the world, and its failure sent shockwaves through the crypto world.

The surprises and volatility didn’t stop there. The anticipated US CPI hit early Friday morning, and it missed the downside. This was a surprise as the Fed has continued to tell us that inflation is hot and rates could continue to rise. This data certainly has put that hard-line into question at the moment, as CPI data Y/Y came in at 7.7% and M/M came in at 0.4%. This set of fresh plunges on the USD set off Stella rallies on the Dow Jones, SP500 and Nasdaq. Other indexes like the CAC have also been quietly outperforming, with buyers breaking the AUG high this morning.

We have UK GDP to come today and US consumer confidence tomorrow. But we feel the focus is going to remain on the change in momentum that the USD is seeing and the current risk asset rallies. Crypto markets saw some amazing recoveries late Thursday but are seeing fresh selling today. Has the FTX drama been factored in? Or will we see new tests of yesterday’s lows by sellers? It’s a wild time at the moment for traders!

Weekly Wrap Analysis Video

Have a great weekend and good trading.

 

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