Market review for May 8 - 12

Here are the major events of the Forex market:


EUR/USD noted a strong decline, during which it tested the level of 1.08392.
GBP/USD correlating with the dollar, fell, forming on the weekly chart the candle pattern engulfing. The session closed at a price of 1.28822.
USD/JPY continues to grow, which lasts for 4 full weeks. The past five working days slightly pushed the price up, but the overall volatility was high. The closing price is 113.335.
AUD/USD continued to drop. The total volatility for the asset was slightly lower than the average, and the overall decline was 25 points.
USD/CHF has made a powerful breakout in the upward direction. The high was 1.00998 and the close is 1.00081.
USD/RUB after a short increase last week moved lower.
GOLD formed the doji candlestick pattern, while the total volatility was large enough for the asset. The extreme levels are the following – the high was 1236.652 and the low was 1214.392. Thus, the market balanced the strong fall, which began in mid-April.
Silver slightly increased after three weeks of a strong decline. On the weekly chart, you can find the hammer pattern.

The Swiss franc showed the most visible activity last week, which fell 1.41% against the US currency. The Swiss franc has made the strongest drop, due to a sharp decline in demand for currency. It happened on Monday, as a result of which the drop was almost 120 points.

The main decrease in the dollar against other assets is due to weak US statistics. In particular, sharply negative data on inflation came out on Friday, which significantly contributed to a drop in prices.

The British pound was balanced almost all the week. The exception was on Thursday, during which a sharp jump was recorded. The reason is the UK economic news. The Bank of England refused to raise the interest rate. The situation was aggravated by the fact that the country's GDP forecast was revised to a much worse position.

The situation in the stock market


American stock indexes closed last week in different directions. Nasdaq showed a slight growth, while Dow and S&P fell.

The worst data came from Dow Jones, which almost stayed unchanged at its Monday value. The overall fall is 0.53%. The reason for this dynamic is that most of the shares included in the calculation of the index dropped. A significant drop was avoided thanks to Apple, the shares of which rose 5.5% for the week. S&P 500 looked better – it fell only 0.43%.

The European stock market also pointed to a drop. Eurostoxx decreased by 0.6%. The situation is not critical since the drop is insignificant. German DAX and British FTSE 100 went up for the week.
See also:
Weekly trading forecast November 19 - 23
Weekly trading forecast November 19 - 23
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