Gold (XAUUSD) Rising on Weaker USD. US Indices Bullish. GBP Higher on Interest Rates.
Hey Valutraders! Did you see what last week’s Interest Rate Decision did to the markets?
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I’m Brad Alexander and in this week’s Market Blast Fundamentals let’s take a look at GBPUSD, Gold (XAUUSD), the USD Index, the Russell 2000 (RUS2000), and the S&P 500 (US500).
Last week’s Interest Rate rise by the US Federal Reserve had a negative effect on the stock indices as expected.
The news media very often say that these changes in monetary policy are built in, but in reality, they almost always affect the markets.
In the case of the S&P 500, price action broke out of this bullish channel and fell to a key level of 3700.
Investors bought the dip and price action is rising again.
On the Russell 2000, price action fell as well, but hit this lower trend line and the bullish trend is continuing.
Between the Interest Rate decision and the Non-Farm Payrolls last week, we saw a lot of volatility on the USD Index with price action finally settling lower.
This USD weakness saw price action on Gold rising but starting to consolidate now.
We will look at this from the technical side in the next video.
This week’s economic calendar is much lighter than last week’s with the most important news regarding UK Manufacturing and Gross Domestic Product on Thursday.
GBP is rising based on some stability in the UK Parliament and last week’s Interest Rate rise by the Bank of England.
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