FOMC, RBA, NFP, OIL, GOLD, FOREX, USD, Indices & Crypto | Weekly Market Wrap with Joe Jeffriess

Hi, and welcome to this week’s wrap traders. Our weekly report examines some of the moves and news as we get set to close the trading week.

This week was far from boring, as we saw plenty of volatility. The RBA got the AUDUSD going with a surprise rate hike. The AUDJPY also jumped but was cut down by a strong JPY during the middle of the week. The USD was mainly lower as the FED lifted rates during this week’s FOMC and sent mixed messages about future policy.

On the one hand, they said it could be data-dependent but also told us that inflation was still a problem and was too soon to cut rates. This came off the back of an ongoing banking saga that saw JP Morgan pick up the First Republic. Other bank stocks continued to have issues, with PacWest dropping 50%. Attention is also on short sellers as comments came of possible manipulation of banking stocks over the crisis.

The USD has spent most of the week lower, and we have seen mixed gains from risk majors. The AUD led the run, and the EUR retreated after the ECB lifted rates but failed to give any real hawkish outlook.

Gold was rather deadly after the FOMC. The price dashed to new highs for 2023 but cut back sharply. Silver held its rally and also hit new highs for 2023 today.

Oil had another shocker plunging twice this week on what we think are recessionary fears around future demand. The price dropped below $70. Will we hear from OPEC now prices are trading this low?

After a mixed FOMC and further banking sector worries, US indexes mainly traded lower this week. The ECB definitely supported the DAX last night as it fought weaker US leads.

Crypto started the week with heavy selling but clawed back losses throughout the week, with ETH actually getting in front today.

With Powell’s data-dependent comments, could today’s NFP cause further volatility? Keep an eye on US indexes, Gold, and the USD after its release at 8:30 am EST.

Eightcap’s Weekly Wrap