Risk Rally, AU CPI, Forex, Indices, Gold, Crypto, & MORE | Eightcap Trade Zone Weekly Market Wrap
A different week this week as, for once in a while, it felt like a good old-fashioned risk run. Data-wise, it wasn’t necessarily a big one, but we got a few pleasant surprises. Australian CPI came in at 6.8%, US CM consumer confidence rose to 104.2, but US final GDP slipped to 2.6%. German Prelim CPI rose to 0.8%, and traders will be looking out for Friday’s Core PCE index for more information on the US inflation puzzle.
Despite the data, we saw mainly one-way traffic this week as the USD and JPY were sold, and risk majors like the AUD, EUR, and GBP rallied firmly. The JPY, which has been seen as a banking crisis safety option as of late, was the hardest hit, with the USD adding close to 2%. Those currencies also saw a solid week compared to the USD, as the index fell by 0.64%.
Stock indexes also followed the lead. US and European indexes post solid weeks, and the NDX100 hit another higher high, breaking last week’s high. The ASX also starred this week, adding 2.85% (CFD Index).
Gold was flat for a second week, and oil fought back, hitting $74 at one point, taking its two-week rally close to 10%.
Crypto was mixed for another week in a row, but Bitcoin retested 29,000 during the week. We have run over BTC and ETH, reviewing resistance levels that look to be holding these markets back at the moment.
This week we have a shortened week with the Easter holidays. We will be watching the RBA rates decision after the last CPI data. Will we see a hold? Despite the holiday US employment data will be released on Friday, and traders will be watching closely to see if the data impacts the current inflation situation.
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