Weekly Market Breakdown | USD Plunge, FOMC, Forex, Indices and More | Trade Zone with Joe Jeffriess
📈 Welcome to our Weekly Market Breakdown, your compass through the latest market intricacies impacting diverse assets.
It was another week of solid volatility, but unlike last week, news was the main influence driving the moves. The USD was the bigger story this week after its reaction to the FOMC policy statement. Restrictive policy looks to be over with eyes on a new policy coming in, and there is talk that we could see two cuts in 2024.
It wasn’t great for the USD, and it was hammered during the week. On the flip side, we saw fantastic rallies from risk assets, with the EUR, AUD, and GBP all setting off continuations higher. Gold also saw a few solid days of buying off the back of the USD. Palladium jumped yesterday, adding 15%.
Indices were another asset class that benefitted from the Fed’s policy change. We saw the US30 and GER30 trade at new records this week. Other central banks held rate meetings this week, but they were not to the same effect as we saw with the FED. The Bank of England and European Central Bank held rates steady as expected.
Crypto saw some new weekly highs this week, but most of the majors mainly traded below last week’s highs after some solid selling started the week. Most coins bounced back towards the week’s end, and ADA hit new yearly highs.
Next week, we see the Bank of Japan meeting as the key event. Rates are expected to remain on hold, but it’s the policy statement that has been causing the most drama with the yen of late.
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