Start the week of November 28, 2021 with our Forex forecast focusing on major currency pairs here.
Technical Analysis
U.S. Dollar Index
The weekly price chart below shows the U.S. Dollar Index printed a bullish candlestick last week, again making its highest weekly closing price in over one year. The price is above its levels from 3 and 6 months ago, which shows that a long-term bullish trend in the greenback is present. However, Friday’s news sent the greenback falling, and the Index clearly rejected probably resistance overhead at 12238 as shown in the price chart below, so the bullish USD trend may have come to an end, at least for a while. The short-term momentum is certainly bearish.
Thebest strategy in the Forex market over the coming week will probably be to look for trades driven by other, weaker currencies, and using either USD or ideally JPY as the long counterparty, or maybe a mixture of both.
GBP/JPY
The British pound initially tried to rally last week but then collapsed on Friday as we saw a major “risk off move” around the world. The new coronavirus variant coming out of South Africa has people selling anything remotely close to being risk-related. It is worth noting that the market breaking down the way it has does suggest that we have momentum to the downside, but at this point we need to break through the ¥149 level to truly fall apart.
USD/JPY
The US dollar initially rallied last week but had an absolutely brutal Friday session. This was in reaction to the negativity coming out of South Africa, and the possibility of further lockdowns. This had a major “risk off” attitude coming into the market, and I think it does make sense that we would break apart here. If we can get down below the ¥112.50 level, this is a market that has further to go, perhaps reaching down to the ¥110 level. If we do turnaround at this point in time, I would expect more consolidation than anything else. Unfortunately, weekend news is probably going to be the main driver.
EUR/USD
The euro fell rather hard last week, reaching down towards the 1.12 level. However, we have recovered completely to form a massive hammer. This suggests to me that perhaps we have gotten a little bit ahead of ourselves, so it makes sense that we would get a little bit of a bounce. The “ceiling in the market” at this point seems to be near the 1.15 handle, and I think that is where we will try to get to in the short term. However, if we were to turn around and break down below the bottom of the candlestick, then the euro breaks apart to reach down towards the 1.10 level.
EUR/GBP
The euro rallied quite significantly against the British pound last week, but I still see a lot of resistance above, especially near the 0.8550 level. Because of this, a short-term rally is possible, but I do think it is only a matter of time before the sellers come back in and push this market lower.
Bottom Line
I see the best opportunities in the financial markets this weekaslikely to be long of USD/ZAR and USD/MXN. If you have access to the JPY crosses in ZAR and MXN, these are likely to be better options provided you are short of ZAR and MXN.
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The weekly price chart below shows the U.S. Dollar Index printed an indecisivedojicandlestick last week after having earlier rejected the zone of support which I had identified between 11899 and 11833. The price is above the levels from 3 and 6 months ago, which shows that the long-term bullish trend in the greenback is still valid. However, the short-term momentum is unclear in the USD right now. This suggests thattrades in the USD look better on the long rather than short side right, so the best strategy in the Forex market over the coming week will probably be to look for long trades in US dollar currency pairs but only once the short-term momentum turns from bearish to bullish.
WTI Crude Oil
WTI Crude Oil closed Friday at a new 6-year high weekly closing price for the second consecutive week. This is a very bullish sign. The price is likely to continue rising over the short term as the global energy supply crisis continues. Bulls should be aware of the potential resistance level shown in the price chart below just above $84.
EUR/USD
The EUR/USD currency pair broke to a new 14-month low price for the second consecutive week but made a significant bullish retracement as can be seen from the fact that the weekly candlestick is almost a doji. The Euro has the steadiest long-term weakness of any major currency, but it is trending slowly with deep retracements, like the EUR/USD tends to.It is likely that the price will continue to move lower over the coming days once the short-term momentum turns bearish again,although the medium-term downside may be limited by thebig psychological round number below at 1.1500, which is confluent with a long-term pivotal horizontal level at 1.1517which could halt the drop.
USD/JPY
The USD/JPY currency pair made a strong and dramatic bullishbreakoutlast week beyond its recent multi-month range.The range of the weekly candlestick was unusually large, and the price closed near the top of that range. These are bullish signs which suggesttrading this pair long is likely to be a good opportunity to make some profit, especially as there are no key resistance levels until 115.45.One word of caution: the breakout price action recently has included deep retracements.
NZD/USD
The New Zealand dollar has been all over the place during the week, even as the Royal Bank of New Zealand has raised rates. The New Zealand economy is far too attached toAsiato think that it is simply going to take off to the upside. The market is showing signs of confusion, and I think at this point if we break down below the 0.68 handle, this market could unwind. On the other hand, move above the 0.70 level, then it is very likely that we go higher.
NZD/JPY
The New Zealand dollar rallied significantly last week, with ¥78 above offering resistance, right along with the ¥79 level after that. To the downside, the ¥77 level has offered little bit of support, and the 50-week EMA is starting to reach towards that area. This is a market that I think will continue to be very noisy and choppy, and I would anticipate more back-and-forth action due to the fact that there is so much concern around the world as far as growth is concerned, and this is a very risk-sensitive pair.
GBP/USD
The British pound rallied during the week but turned around at the 50-week EMA to show signs of hesitation again. If we can break down below the 1.35 handle, it is very likely that this market will go much lower, perhaps reaching towards the 200-week EMA. On the other hand, if the market were to turn around and break above the 1.37 level, then it is possible we may go looking towards 1.39.
Bottom Line
I see the best opportunities in the financial markets this week as likely to be short EUR/USD and long WTI Crude Oil in US dollar terms, and long USD/JPY.
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Get the Forex Forecast using fundamentals, sentiment, and technical positions analyses for major pairs for the week of September 27, 2021 here.
The difference between success and failure in Forex trading is very likely to depend mostly upon which currency pairs you choose to trade each week and in which direction, and not on the exact trading methods you might use to determine trade entries and exits.
When starting the trading week, it is a good idea to look at the big picture of what is developing in the market as a whole and how such developments and affected by macro fundamentals and market sentiment.
There are a few strong valid long and short-term trends in the market right now, so it is a good time to be trading to take advantage of that.
Big Picture 26th September 2021
Last week’s Forex market mostly moved weakly counter to most prevailing trends. The Japanese yen was weak while the US dollar, Canadian dollar, and Swiss franc were strong. Global stock markets recovered from a dip.
I wrote in my previous piece last week that the best trades were likely to be short of the AUD/USD currency pair taking aswing tradingstyle, and long of the USD/CHF currency pair with short-term day trades. This probably would have given a mixed outcome as the AUD/USD currency pair fell over the week, but the USD/CHF currency pair failed to rise.
Fundamental Analysis & Market Sentiment
The headline takeaway from last week were mildly hawkish tilts from the Federal Reserve on the USD and the Bank of England on the GBP. This sent yields higher, with the yield on the US 10-year treasury surpassing 1.45% for the first time since July. Global stock markets mostly recovered over the week, with the bearish Chinese market a notable exception. Perishable commodities are rising, with WTI Crude Oil’s breakout to close at a new 50-day high on Friday leading the way there.
This week’s schedule will be dominated by US and Canadian GDP data, but apart from these economic releases, scheduled events look very light. There is a federal election in Germany today and the opinion polls show the two major parties are closely tied. The election will determine the successor to Angela Merkel, who has been in office for the last sixteen years.
We are seeing an increase in supply chain disruptions, most notably in recent days within the UK where it has been hard for motorists to find retail gasoline for sale over the past days.
Last week saw the global number of confirmed new coronavirus cases fall for the fifth consecutive week after previously rising for more than two months, with deaths lower for the fourth consecutive week. Approximately 44.3% of the global population has now received at least one vaccination.
The strongest growths in new confirmed coronavirus cases right now are happening in Barbados, Belarus, Croatia, Egypt, Estonia, South Korea, Laos, Latvia, Lithuania, Moldova, Romania, Russia, Slovakia, and the Ukraine.
Technical Analysis
U.S. Dollar Index
The weekly price chart below shows the U.S. Dollar Index printed another bullish candlestick last week after having rejected the zone of support which I had identified between 11899 and 11833. The price is above the levels from 3 and 6 months ago, which shows that the long-term bullish trend in the greenback is still valid. We also have some bullish momentum evidenced by the fact that the weekly candlestick closed not far from the top of its range. This suggests thattrades in the USD look better on the long rather than short side right now, so the best strategy in the Forex market over the coming week will probably be to look for long trades in US dollar currency pairs.
WTI Crude Oil
WTI Crude Oil closed Friday at a new 50-day high price. This is a bullish signand many trend-following hedge funds will be buying WTI Crude Oil futureson Monday. However, bulls should be warned that the multi-month price action remains rectangular shaped, as can be seen by the chart below, with the $76.38 level above the current price quite likely to act as resistance. Nevertheless, the price is more likely than not to rise over the very short term.
GBP/USD
The GBP/USD currency pair is looking heavy as it has again fallen to test the pivotal 1.3600 area for the third time since July. This pattern is likely to produce either a significant bearish breakdown in line with the bearish trend or give another bullish reversal from the 1.3600 area which could become a long-term bullish triple bottom.
A daily close of a firm bearish candlestick below 1.3600 could be a good short trade entry signal.
Silver (XAU/USD)
Silver broke down to new long-term low daily closing prices last week, although the low if its recent spike down has not yet been exceeded.The price action is clearly bearish although the price was reluctant at the end of the week to close at a significant low. Nevertheless,the trend is clearly bearish, and a daily close below $22.25 would be a bearish signalindicating that a short trade entry could be appropriate here. The bearish case for Silver is helped by the fact that Gold is also looking weak, albeit less so.
GBP/JPY
The British pound fell significantly during the last trading week, but then turned around to show signs of life at the ¥149 level. The market has turned around to form a bit of a hammer, and now it looks like we are trying to break out to the upside. That being said, the ¥153 level been broken to the upside is what needs to be seen in order to get overly bullish. In the meantime, I anticipate that we will have a lot of choppy behavior, based mainly upon the idea of risk appetite either being on or off.
EUR/USD
The euro fluctuated last week to show signs of confusion, with the 1.1685 level underneath offering support. If we break down below that level, then I believe that the euro will sell off quite drastically to open up a move down towards the 200-week EMA. That being said, this is a market that seems to be somewhat consolidating, and if we break above the top of the weekly candlestick, we could go looking towards 1.1850 level above. At this point, I think the market will stay in this tight range that we have been in for a while.
AUD/USD
The Australian dollar went gone back and forth last week as we continue to hear a lot of noise in this pair. That being said, the market is likely to make a decision based upon which side of this candlestick we break out of. If we break down below the bottom of the candlestick, it is likely we will go looking towards the 0.71 level. On the other hand, if we break above the top of the weekly candlestick, then it is likely we will go looking towards the 0.7450 level. Keep in mind that the Australian dollar is highly sensitive to the risk appetite of traders around the world and everything going on in China.
CAD/JPY
The Canadian dollar initially fell during the course of last week, but then turned around at the ¥85 level to show signs of strength. Furthermore, you should keep an eye on the oil market as it looks like it is trying to break out to the upside. If oil continues to rally the way it has been, then it is likely that the Canadian dollar could go looking towards the ¥90 level over the longer term. On the other hand, if we turn around and show signs of exhaustion, then we could go looking towards the ¥86 level initially before reaching towards the bottom of the candlestick.
Bottom Line
I see the best opportunities in the financial markets this weekaslikely to be short in Silver and the GBP against the USD once new low daily closing prices have been made, as I outlined above
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Market Morning Briefing: Pound Seems To Be Holding Above 1.36
STOCKS
Dow trades higher after the FOMC and looks bullish for the near term. A rise above 35000 is needed to prevent further fall towards 33000. Dax is also bullish and needs to sustain above 15500 to move up further. Nikkei looks bearish while below 30000. Shanghai has risen well from support and looks bullish. Nifty and Sensex can see a steady rise in the near term.
Dow (34258.32, +338.48, +1%) has risen back above 34000 and while it holds strong, we may expect a rise back towards 34500-34750. However, in the medium term it needs to rise above 35000 and sustain higher to prevent any vulnerability to fall back towards 33000.
DAX (15506.74, +158.21, +1.03%) has risen well too but needs to rise and sustain above 15500 to indicate bullishness towards 15700/800 in the medium term.
Nikkei (29639.40, -200.31, -0.67%) continues to fall over the last few sessions and the view is bearish while below 30000 to see a dip towards 29250-29000 followed by a rise towards 30500-3700 eventually in the longer run. Japan markets are closed today.
Shanghai (3648.57, +20.08, +0.55%) rose sharply from support near 3560 and while that holds, view is bullish on the shanghai.
COMMODITIES
Commodities have risen well. Crude prices have risen and are heading towards resistances. Brent needs to hold below 77-78 while WTI can test 73-74 before coming off from there. Any break above the mentioned resistances can take them higher towards 80 and 75 respectively which are crucial in the medium term. Gold has dipped and needs to sustain above 1740 to move up again soon. Else a fall to 1725/00 cannot be negated in the longer run. Silver can fall towards 22-21.50 but before that it can attempt to rise towards 23.50. Copper tested 4 and has bounced back well from there. It can now rise back towards 4.30/40.
Brent (76.44) has risen well breaking above 75 and could now head towards interim resistance at 77-78 above which there is crucial resistance at 80. The broad 77-80 zone is likely to be tested before a sharp fall towards 70 is seen in the medium term.
WTI (72.41) has risen well as expected and could test 73-74 in the near term.
Gold (1763.90) has fallen as expected from resistance zone of 1780/90 and while that holds, a dip to 1740 cannot be negated. We would have to watch price action near 1740 to see if the price bounces from there or falls further down in the medium term. While correlation with Euro remains strong, a possible bounce in Euro from 1.1665 can help Gold bounce back too.
Silver (22.55) has risen a bit and has scope to rise towards 23.50 before falling off from there. Any break below 22 if seen in the near term would prove contrary to our view and lead to a sharp fall towards 22-21.50. .
FOREX
FED announced that it would start tapering by end of this year and stop purchases by mid-2022. It also signaled 3-rate hikes in 2023. Dollar Index rose sharply but needs to sustain above 93.40 to trade higher else a decline towards 93 is possible soon. Euro has broken below 1.17 and may test 1.1665 support which needs to hold to prevent further dip to 1.16. Aussie and Pound have bounce well from immediate supports. USDCNY is holding below resistance zone of 6.47/48. USDINR can test 74 on the upside but has 50% chance that it would come off from there back to 73.80/60. Watch price action near 74.00
Dollar Index (93.44) rose sharply to 93.4150 yesterday as FED announced starting of tapering by end of this year and signaled 3-rate hikes in 2023. Although the index has come off a bit it needs to break below 93.40 and sustain lower to avoid any further rise towards 93.60-93.80 in the near term. Watch price action near 93.40.
Euro (1.1697) fell to test 1.1684 yesterday before rising slightly from there. Note support near 1.1665 which needs to hold in order to keep some room on the upside intact. Else a fall towards 1.16 cannot be neagted.
EURJPY (128.50) has bounced well from support near 128 and while it holds, there is scope for a rise to 129 in the near term.
Dollar-Yen (109.88) rose sharply along with the rise in Dollar Index. But note that the pair still trades within 109-110.40 range which could hold for some more time.
Aussie (0.7226) has paused its fall near 0.7220-0.7200 and a bounce looks possible from current levels towards 0.7250-0.73 eventually.
Pound (1.3625) seems to be holding above 1.36 and while that holds, a bounce back to 1.3650-1.37 cannot be negated in the near term. Only a break below 1.36 if seen will force to look for lower levels.
INTEREST RATES
The US Federal Reserve left the rates unchanged at 0%-0.25%. It had said that the stimulus taper will begin soon. The PCE and Core PCE inflation projections have been revised higher to 4.2% and 3.7% respectively from its earlier projection of 3.4% and 3% respectively. The US Treasury yields have risen at the near-end (2Yr and 5Yr) while the far-end (10Yr and 30Yr) yields have seen a dip. A break below the immediate supports can drag the far-end yields further lower from here. The German yields remain stable and are likely see a fresh fall from here and resume the broader downtrend. The 5Yr and 10Yr GoI have risen-back yesterday. However, they have key resistances ahead that can cap the upside and keep it pressured for a further fall going forward.
The US 2Yr (0.24%) and 5Yr (0.85%) Treasury yieldshave risen while the 10Yr (1.30%) and the 30Yr (1.81%) have dipped after the Fed meeting outcome. A fall below 1.28% on the 10Yr and 1.8% on the 30Yr can drag the yields to 1.2%-1.18% (10Yr) and 1.7% (30Yr) in the coming days. It will also negate the chances of seeing 1.4%-1.45% (10Yr) and 2% (30Yr) on the upside. We will have to wait and watch the follow-up movement in the coming sessions.
The German 2Yr (-0.72), 5Yr (-0.64%), 10Yr (-0.33%) and 30Yr (0.16%)yields continue to remain stable below their key resistances. Our view remains the same. We expect the yields to resume the broader downtrend and see a fresh fall from here. The 10Yr can fall to -0.5% while below -0.25% and the 30Yr can test 0% while it sustains below 0.2%.
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The US Dollar Index created a double-bottom formation on the chart in January and May 2021, which lined up with a support area made in early 2018, giving it a firm base to launch an uptrend.
However, the DXY reacted bearishly against previous resistance at 93.191, with a large selloff on Friday, producing an almost perfect double-top spanning the last three weeks. That said, the index is still technically in an uptrend on the 4-hour chart until the previous support at 91.782 is broken. A break of 91.513 would be even more bearish.
S&P 500
The S&P 500 notched up another positive week, continuing the uptrend that began on 24th March 2020. With the price in record-high territory, there are no previous resistance levels to slow down its long-term bull run (that doesn’t mean that the trend won’t pause or reverse at some point, but it will probably require an economic shock to make that happen). To repeat the words in my last market commentary, the first piece of investing advice I got was, “Buy the stock market, and just hold it.” The actions of the S&P 500 is proving this statement correct. After a precipitous sell-off in Feb/March 2020 when the global impact of COVID became apparent, it made back its losses and marched into new highs with the confidence of a star athlete. The index has shaken off, with remarkable speed, any concern you could throw at it, from peaking economic growth, historically high valuations, coronavirus variants, and extreme weather events, to name a few.
Our S&P 500 strategy is to buy on dips, preferably when it retests previously broken resistance levels, and we’ve identified levels in previous market commentaries. This has worked particularly well on the release of bearish economic data. For example, on Thursday, the U.S. Bureau of Labor Statistics released the monthly Producer Price Index (PPI) numbers, a key inflation indicator. It came in higher than expected (1.0% compared to the forecasted 0.6%). The market sold off for a couple of hours, only to turn around and close higher than its open that day and make a new closing high the next day.
The most recent previously broken resistance levels that could potentially act as supports on dips are 4426.1 and 4386.5
What would make me reconsider the uptrend and look for a potential market reversal or at least a pause in the trend? If the market broke the support levels at 4234 (made on 19th July), 4138 (made on 21st June), and 4035 (made on 13th May). The last significant support before that was made way back in September 2020 at 3210.
EUR/USD
The EUR/USD is potentially starting a new downtrend. A reversal zone made in the first quarter of 2018 was tested in January 2021 and May 2021, creating a double-top formation on the chart.
On the daily chart, the market is below 1.19573, a key interchangeable support/resistance level, again a bearish sign. However, the price bounced off a previous support level, 1.17041 last week, effectively producing a channel between 1.17041 and 1.19573. The bounce also potentially sets up another bullish week ahead. We want to see the price break at least 1.17041 and 1.16121 to be more confident of a bearish outlook. 1.17041 is more important because it is the support in between the high in January and the high in May.
GBP/USD
A reversal zone made in the first quarter of 2018 was tested in February 2021 and June 2021, creating a double-top formation on the chart. But the price is still firmly in the reversal area.
On the daily chart, it’s clear the price is stuck in a sideways pattern. That said, there are several clues to a potential bearish move. The price made a double-top, and the second peak was a “rounded top” formation that can act as a strong resistance.
Looking at where the price is sitting right now, it is below 1.4005, a key interchangeable support/resistance level. Last week, the price trended down for most of the week before having a bullish Friday to leave it near where it opened for the week. In that sense, our commentary on this pair is almost identical to the previous week, but because it is sitting in a long-term resistance area with the potential to breakout, we want to highlight it again.
We want to see the price break the support at 1.3670 to be more confident of our bearish sentiment (and 1.3572 – the low made on 20th July – to be even safer).
USD/CAD
Over May & June 2021, USD/CAD bounced off a long-term support level made in September 2017 at 1.20613.
Visible on the daily and 4-hour charts, the price has made a series of higher lows since June 2021. However, recently, it has stalled and resistance at 1.25902 has appeared. The price must break the 1.25902 level for us to continue to feel bullish on the USD/CAD. The next resistance that could stall the price is 1.28075. If the price breaks the support at 1.24221, we would be neutral to bearish on the pair.
GBP/CHF
Normally, I focus on Forex majors, but a nice sideways channel on GBP/CHF is visible on both the haily and 4-Hour charts:
AUD/USD
AUD/USD is such an interesting pair from a support & resistance point of view. A large head & shoulders reversal pattern has formed over the first six months of 2021. The neckline of that pattern stood at 0.75812 – it was broken and then retested as resistance, thus providing a short entry opportunity. Note that “flipping” levels, i.e. support turning into resistance, and vice versa, can work out well. Now the price is retesting a previous resistance, 0.74135. The confluence of these factors gives us a nice bearish outlook for this pair
Summary
The best opportunity I see in the markets is to go long S&P 500 – I would look at the 4-hour chart to buy off support levels. Next, the best opportunity is the bullishness in Bitcoin, if you have the stomach for its volatility!
I am monitoring the levels outlined above for the EUR/USD and GBP/USD. Both have bearish pictures on the larger timeframes, but EUR/USD has bounced off a confirmed support level visible on the daily timeframe, and GBP/USD is in the middle of a channel.
USD/CAD will break out from the tight price range visible on the 4-hour chart and provide trading opportunities.
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Get our trading strategies with our monthly & weekly forecasts of currency pairs worth watching using support & resistance for the week of August 16, 2021.
This week we will begin with our monthly and weekly forecasts of the currency pairs worth watching. The first part of our forecast is based upon our research of the past 18 years of Forex prices, which show that the following methodologies have all produced profitable results:
Trading the two currencies that are trending the most strongly over the past 3 months.
Assuming that trends are usually ready to reverse after 12 months.
Trading against very strong counter-trend movements by currency pairs made during the previous week.
Buying currencies with high interest rates and selling currencies with low interest rates.
Let us look at the relevant data of currency price changes and interest rates to date, which we compiled using a trade-weighted index of the major global currencies:
Monthly Forecast August 2021
For the month of August, we make no forecast as there are no clear trends in the Forex market showing very strong momentum.
Weekly Forecast 8th August 2021
Last week, we made no weekly forecast, as there were no large counter-trend price movements in any important currency pairs or crosses.
We again make no forecast this week.
The Forex market saw low volatility last week. The seven Forex majors moved an average of 0.27% against the USD, with the largest percentage move coming from USD/JPY, moving only 0.55%. GBP/USD, a reasonable size of the Dollar Index, was virtually unchanged at 0.01%. The low volatility was probably reflective of a relatively light week for economic data releases, the key release being CPI and PPI data.
Volatility is likely to be low to moderate next week.Volatility will be helped by a few high-impact economic data releases, including core retail sales and FOMC meeting minutes.
Last week, EUR and JPY showed strength against the US dollar (EUR/USD and USD/JPY, respectively). CHF showed lots of strength for four consecutive days, particularly Monday and Tuesday, and wiped out much of that strength on Friday – although it moved only 0.08% from open to close during the week, it had a large range within the week.
Key Support/Resistance Levels for Popular Pairs
We teach that trades should be entered and exited at or very close to key support and resistance levels. There are certain key support and resistance levels that can be watched on the more popular currency pairs this week.
Get the Forex Forecast using fundamentals, sentiment, and technical positions analyses for major pairs for the week of August 16, 2021 here.
The difference between success and failure in Forex trading is likely to depend mainly on which currency pairs you choose to trade each week and in which direction, and not on the exact trading methods you might use to determine trade entries and exits.
When starting the trading week, it’s wise to look at the big picture, significant trends and critical levels in the market, and what fundamental drivers could affect them.
15th August 2021 Weekly Commentary:
In a relatively light week for U.S. economic data releases, all eyes were on the latest inflation numbers. The July Consumer Price Index (CPI) rose by 0.5%, in line with forecasts and nicely below the 0.9% registered in June. Core consumer price inflation, which excludes volatile food and energy costs, came in at 0.3%, slightly below the forecasted 0.4%, and well below the previous month’s core CPI number of 0.9%. This slowdown in inflation appears to align with the U.S. Federal Reserve’s narrative that recent spikes in inflation are transitory as the economy works through pandemic-related bottlenecks. However, the Producer Price Index (PPI) increased by 1.0%, well above the forecasted 0.6%. Upon the release of the PPI data on the morning of 12th August, the market sold-off for a couple of hours, before rebounding and finishing the day up from its opening price.
Key Highlights
The S&P 500 notched up another positive week, continuing the uptrend that began on 24th March 2020.
The EUR/USD bounced off a support level created on 29th March to end the week in positive territory, potentially setting us up for another positive week, although the long-term picture looks bearish.
The GBP/USD was almost unchanged by the end of the week; it has been in a sideways channel for about six months, and, similarly to EUR/USD, its bigger picture also looks bearish.
The USD/CAD trend that started at the beginning of June now looks weak, with ominous resistance areas formed over the last two weeks.
Bitcoin delivered a fourth positive week in a row after having bounced off a key support level.
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