Hey Valutraders! Did you know why the USD fell last week?
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I’m Brad Alexander and in this week’s Market Blast Fundamentals let’s take a look at the Nikkei (JP225), NZDUSD, GBPUSD, EURUSD, and the USD Index.
We will look at USD pairs in a minute but we can see this big fall in the USD Index last week.
Everyone was waiting for the US Consumer Price Index figures, to get the best reading on inflation, and the number came out much better than expected.
This was good news for everyone from the US Federal Reserve, to Emerging Markets in USD debt, to investors and to consumers as the Fed may be able to slow down on its Interest Rate rises.
This week everyone will be watching Wednesday’s FOMC meeting for information on the Fed’s upcoming monetary policy.
The USD has since recovered and it looks like a good technical opportunity might be happening.
The same can be said of EURUSD which rose and fell back to this lower trend line.
And the same with GBPUSD which rose and fell back to support at $1.21.
NZDUSD had the biggest jump in price action and the reason is that we expect the Reserve Bank of New Zealand to raise Interest Rates to 3% on Wednesday.
We had some good news from Japan with positive GDP numbers this morning and we will be watching Employment figures from the European Union and Australia.
Also, Retail Sales from the US, the UK, and Canada will give investors a good idea of economic activity so keep an eye on those currencies respectively.
Overall, the NZD is our strongest-looking currency.
The good news on Gross Domestic Product in Japan has sent the Nikkei higher and we have to look at the weekly chart to see the all-time highs from last year.
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