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Eightcap Trade Zone Weekly Market Wrap | PMI, Fed Minutes, Core PCE, Forex, Indices, Gold, Crypto, & more | Eightcap Trade Zone Weekly Market Wrap

Published: 24.02.2023
by Joseph Jeffriess

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

I’ll be honest. It wasn’t the most exciting week, but we saw some movement, even though much of it was in current ranges.

The Fed minutes told us mainly what was known, inflation is still too high, but it is starting to weaken. Rates will continue to increase, most likely at 25-point increments.

The USD had a decent week as it continues to grind higher on a short-term trend. The US30 continues to hold around a support base, and the NDX100 and SPX500 have set minor rallies after sellers broke through trends. We will continue to watch these markets tonight and next week to see if sellers can confirm the trend breaks with a new push lower.

FX wise, the AUD, EUR and GBP moved lower to the USD after it continued to push. The GBP continues to hold above 1.1990 support, but we still see plenty of seller pressure from above. The GBPJPY pushed higher to form a breakout, but the jury is still out on whether this was actually a false break. The Yen did see two solid days to the risk majors, and like the NDX100, new breaks lower could be confirmed if we see a new leg lower.

Oil traded in a 4.95% range this week but continues to fight back from the mid-73s. Overall it continues to trade in a long-term range.

Crypto majors failed at resistance this week and were sent lower in two selling sessions. Buyers tried to get moves going on Thursday but were rejected into the NY session.

To end the week, we have US core PCE price index data coming out at 8:30 am EST. This is another piece of the inflation puzzle, and if we see higher-than-expected data, it could worry risk assets.

Next week is not too exciting on the data front; some to watch are US CB consumer confidence and US ISM manufacturing and services PMIs. Australian CPI could be interesting as a higher reading could cause some headaches for the RBA after weaker jobs data and public scrutiny of its recent rate hikes.

Governor-elect Ueda speaks on Tuesday; traders will be interested to understand better his direction moving forward.

Weekly Wrap Video 

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