A Bitter Sweet Environment In Global Forex Markets
Bitter Sweet Markets
The atmosphere in the forex markets hasn’t changed a bit and remains to be bitter. However, for USD in particular, the mood was rather sweet as USD was able to make some recovery which it had lost in the week’s initial days.
Nonetheless, USD edged up mainly because of the pivot that US Federal Reserve shouldn’t need to decline the rates.
Global Stock Markets’ Atmosphere
Wall Street was subjected to losses because the stock markets in the European and Asian regions were unable to close the week in green.
USD Supporters i.e. Indexes and Bond Yields
To the utter surprise of the majority, US indexes saw their value surging as a result of which the week ended on the positive side for the USD.
Additional strength was achieved by the USD when US Treasury Bonds showed impressive yields.
Investors need to remain alert because the sentiment is that they could not afford to place their bets against the greenback.
On the other hand, Nancy Pelosi, the Speaker of the House, stated on Thursday that she would not contest the mid-term election results.
She said that even though she was not elected as a congressional leader in the House but she would not take up her concerns by asking for re-election.
EUR/USD fell low on Thursday but was able to end the day at a price range of 1.0300. This indicates that bulls are showing resistance.
In Europe, the European Central Bank has however brought its rate down from 10.7% to 10.6%. According to experts, the rate of 10.6% is still a very high rate as compared to October which needs another review by the ECB.
After losing value in earlier hours of trading on Friday, GBP/USD value was lowered to 1.1762. However, a quick recovery of exactly 100 pips was made by GBP/USD ahead of the trading week’s end.
AUD/USD too was seen moving down on the last day of the week and settled at 0.6690. Similarly, USD/CAD too edged lower and settled at 1.3300 on the day.
Gold Continues To Decline
There was no chance for the Gold to stop its back-to-back declines. After losing 1% Gold ended the week at a price range of $1,760 per troy ounce.
Tip of the Iceberg
In the crypto markets, the FTX scandal continues to affect and haunt other crypto trading platforms/exchanges. It is said that so far what is happening in the crypto industry is only a fraction of a massive disaster.
However, the week remained more or less quite pleasant for the cryptocurrencies. There was no volatility throughout the week and stability was encouraging.
According to experts, the consequences emerging from FTX’s fall are only the beginning of a huge climax. They suggested that it was the first wave of consequences and the impacts thereof have been sustained by the majority but not for long.