RBA, FED NFP, Forex, Indices, Gold, Crypto, & more | Eightcap Trade Zone Weekly Market Wrap

March 10, 2023
by Joseph Jeffriess, Market Analyst

Welcome to this week’s wrap-up, traders!

This week’s Fed testimony was the key mover, but we still have the NFP to come, and if we see more hot figures, this could set off more of the same for the USD and stock indexes.

Post Tuesday, the USD has been a bit mixed, with risk majors pushing higher into Friday. The AUD was in all sorts this week after the RBA hinted at a possible pause and combined with the Fed talking up more rate rises and a higher-than-expected peak rate figure. This set off some serious selling on Tuesday, as we saw the AUDUSD knocked back into the 65 handle. The EUR and GBP faired a bit better. UK GDP beating expectations coming in at 0.3%

BoJ Kuroda had his last meeting on Friday, and the central bank stayed dovish, with the JPY giving up gains to the majors.

Stock indexes mainly had a week to forget, the ASX200 was punished on Friday, dropping over 2%, and it wasn’t much better for US indexes as they were cut down. Over 4% was lost on the US30 and 2% on the NDX100 pre-NFP. Stocks fell with the USD on Thursday, which is usually not common. Gold had a mixed week, and depending on what happens with the NFP it could be trying to set up a point of support. Oil fell from resistance as Fed comments sent worries through the demand outlook due to higher rates possibly causing a recession.

Today’s NFP could be an important one. Last month’s data shot higher, reinforcing worries around higher rates. The Fed has said it’s data-dependent, so if we see another hot NFP this could damage already fragile stock indexes. The USD has been mixed since Tuesday, but one would think another hot figure, a higher USD.

Cryptowise, Silvergate continues to be the big story. We have posted a separate report looking at yesterday’s sell-off.

Next week, some of the key events to watch out for are; US CPI data, PPI and Retail Sales: UK Annual Budget Release, Australian Employment, and ECB rates meeting.

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