In the fast-paced world of forex trading, staying ahead is not just a plus; it’s a must. Changes in the global economy can quickly impact currency markets, and having the latest information is crucial. Being up-to-date with forex news isn’t just about knowing; it’s about making smart decisions that can really affect your trades.
According to Daily Forex, here are a few insights and potential trends to keep an eye on in the forex market.
Risk-On Surge: Dollar Decline
Last week witnessed a resurgence of risk-on sentiment, propelling the US Dollar further into a potentially new long-term bearish trend. However, the week concluded with a risk selloff, triggered by remarks from Fed Chair Powell on Friday, casting uncertainty on the likelihood of imminent rate hikes.
Positive US GDP and Global Inflationary Moderation
In a surprising turn, US Preliminary GDP data exceeded expectations, reaching 5.2%, alongside the US Core PCE Price Index meeting projections. However, the most noteworthy development was the lower-than-expected and declining inflation data from Germany, Spain, and Australia. This unexpected set of data played a pivotal role in fostering risk-on sentiment in the market.
RBNZ Holds Rates Steady with a Hawkish Outlook
The Reserve Bank of New Zealand (RBNZ) maintained interest rates at a robust 5.50% during its policy meeting last week. However, what captured market attention was the bank’s hawkish stance, leaving the door open for potential rate hikes in the ongoing cycle. This unexpected turn of events provided a boost to the New Zealand Dollar.
Last Week’s Data Release
- Chinese Manufacturing PMI: The Chinese Manufacturing Purchasing Managers’ Index (PMI) reported a marginal dip, falling just short of expectations.
- OPEC Meetings: Resulted in agreed-upon production cuts. Surprisingly, crude oil prices declined despite these efforts.
- Canadian GDP: Canada’s Gross Domestic Product (GDP) slightly surpassed expectations, indicating a modestly stronger economic performance.
- US CB Consumer Confidence: The US Conference Board’s Consumer Confidence Index exceeded forecasts, reflecting a slightly more optimistic sentiment among consumers.
- US Unemployment Claims: Unemployment claims in the United States aligned with expectations, suggesting stability in the labor market.
- US ISM Manufacturing PMI: Reported a slight downturn, falling marginally short of anticipated figures.
- Canadian Unemployment: Canada’s unemployment figures aligned with expectations, indicating a steady state in the country’s labor market.
The news presented on Prime Codex is solely those of the analysts quoted. They do not represent the opinions of Prime Codex on whether to buy, sell, or hold specific pairs. Traders are advised to conduct their independent research before making an investment decision.