Last Week’s Market WrapLast week central banks continued the rate hike path, with the Reserve Bank of Australia starting the hikes on Tuesday morning,
Last Week’s Market Wrap
Last week central banks continued the rate hike path, with the Reserve Bank of Australia starting the hikes on Tuesday morning, with a surprise 25 basis points raise which gave the AUD and the NZD a boost, before the bank problems resurfaced again, which hurt the risk sentiment, sending safe havens such as the JPY and Gold higher. Although the risk aversion abated eventually as JP Morgan took over First Republic Bank customers.
The FOMC (Federal Open Market Committee) meeting took place on Wednesday evening, with the FED delivering the last 25 bps rate hike, which sent the USD around 50 pips higher across the board. The European Central Bank (ECB) held its meeting on Thursday, raising rates by 25 bps and president Lagarde made some hawkish comments for further rate hikes, although the Euroe turned bearish after the meeting.
This Week’s Market Expectations
This week starts slow in the first two days, with only the Eurozone Sentix Investor Confidence scheduled to be released later today, which is expected to show a slight improvement. On Wednesday the US core CPI inflation report will be released, and it is expected to have remained steady in April at 5.0%. The Bank of England is expected to hike rates by 25 bps as well on Thursday, to 4.50%, which will be followed by the US PPI producer inflation. On Friday the UK Consumer inflation report will be released as well to close the week.
Last week the volatility picked up again as the banking problems returned, which sent safe havens higher. The FED and the ECB added further to the volatility, and we saw quite a few jumps, followed by reversals lower. We opened 20 trading signals in total, with 8 losing ones and the rest closing in profit.
GOLD Remains Supported
XAU/USD – 240 minute chart
Is the Trend Changing for EUR/JPY?
USD/JPY – Daily chart
Cryptocurrency Update
The Trend Remains Bullish for BITCOIN
BTC/USD – Daily chart
ETHEREUM Remains Supported
ETH/USD – Daily chart
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