Forex Markets Led By USD Failed To End The Week On Higher Note

Trade Markets Poised With Risks

Trade markets were poised with the risky atmosphere on 17th November 2022, however, the index for US Dollar was able to gain some advantages. Resultantly, the trading day closed relatively higher for the US Dollar Index.

On the other side of the US Treasury, the bonds failed in fetching any yields and started to edge down. Currently, USD is struggling in preserving strength.

However, there came a statement from inside the Federal Reserve which impacted the markets significantly.

Fed Reserve Monetary Policies Should Be Tightened

James Bullard, St. Louis Federal Reserve’s President, commented that Fed has to be more restrictive about the rate increase policy. He advised that instead of reducing the rate, it has to be increased by 5 to 5.25%.

USD Moving Into Crucial Range

Resultantly, the EUR/USD pair was able to make up good the Thursday loss of 1.0300 and closed Friday at 1.0350. The pair is currently moving towards its crucial range of 1.0370 which could be achieved depending on the catalyst.

GBP/USD Shortcomings

In contrast EUR/USD, the second most looked-up pair of GBP/USD fell sharply on Thursday during European trading hours.

Initially, on the day, the pair saw value edging down below 1.1764 but prior to the trading day close, the pair succeeded in making a decisive recovery. Currently, GBP/USD has been trading at a price range of 1.1900.

In the UK, the Parliament is hearing presentations on Autumn Budge. British Chancellor has claimed in the budget that the Treasury plans to collect an additional tax of over GBP 55 Billion.

The Chancellor suggested that there is an acute shortage in funding which can only be filled through additional taxes. He further claimed that in this manner inflation and interest rates would be decreased significantly.

The UK also published data pertaining to the National Statistics Office which showed that retail sales had drastically increased by 0.6% in the past month.

Japan’s CPI Data

On the other hand, the data pertaining to the Consumer Price Index of Japan also noticed a 3.7% increase in the last month. For the month of September however, the CPI noted was not more than 3%.

Japan’s October CPI increment also showed that the increase was more than double the size that was expected by the majority.

In any case, however, the USD/JPY pair failed to move upward and instead edged down. At the closing hours of Friday, the pair was last seen trading at 140.00.

The pressure was also seen to be mounted on the Gold price which is pressure stemming from the higher yields fetched by US Treasury Bonds. Resultantly, almost 1% of the value was lost in Gold on Thursday.

Back-To-Back Losses for Gold

Similarly on Friday, Gold failed again in rebounding and even couldn’t make up the 1% loss that it had suffered on Thursday.