The review of last week [17th July -21st July]

The starting of the last week for the professional traders were very much flat as there was heavy impact news release. However, the Industrial Production y/y data release of the Chinese government came out 7.6% better than the expected data of 6.5% gain. These pushed the low Yielding Japanese Yen significantly higher which ultimately helped the USDJPY pair to breach the broken trend line support level at 112.35.On that day most of the Japanese traded higher against most of its major rivals in the global market.

The kiwi dollar is trading significantly higher against the mighty green bucks for the last 11 weeks. On 18th of July, the fundamental news release of New Zealand CPI q/q came out negative (0.0%) than the forecasted data of 0.2%.Though most of the leading investors thought that the minor correction will take place in the NZDUSD pair but the falling USD index mitigated the negative data release. On the contrary In the Australian Monetary Policy Meeting Minutes the Aussie dollar gain a significant amount of bullish strength after RBA president came out with the proposal of tightening their monetary policy. Followed by this the scheduled data release of CPI y/y for the pound came out negative and pushed the GBPUSD pair lower in the global market. However, the cable recovered all of its loss after BOE Governor Carney comes out with hawkish speech.

On Wednesday the falling U.S dollar index was helping most of the major pair to rally significantly higher but the 1.25 M home sales data release create a new hope for the dollar bulls. Most of the major pairs including EURUSD and GBPUSD traded lower in the global market. Though the U.S dollar index was supposed to rally much higher the ongoing debate of Obama’s health care program’s existence mitigated the bullish thrust of the green bucks. However prior to the closing of the day the dollar bulls were relieved as most of the White House member agreed to keep Obama’s Health care program active until a new better alternative is found.

Thursday was a very volatile market for the Yen and Aussie traders. The Unemployment rate for the Australian economy remains unchanged (5.6%).But the most of the leading investors considered the static data as a positive sign of recovery in the Aussie economy which ultimately pushed the AUDUSD pair significantly higher. On the contrary, the low Yielding Japanese Yen lost most of its bullish strength after the Monetary Policy Statement. The statement was released on behalf of BOJ (Bank of Japan) which stated that they are not yet ready to hike their interest rate as they have to adjust the current data of the trade balance. On the contrary ECB president Mario Draghi came out with a hawkish speech in the ECB Press Conference which pushed the EURUSD pair significantly higher.

The market volatility in Friday was less as there was no such high impact news release. However, the traders found some nice volatility in the Canadian dollar pair after the release Core Retail Sales m/m data. Though we had a negative data release the rising oil price refueled the loonie in the market.
See also:
Weekly trading forecast November 19 - 23
Weekly trading forecast November 19 - 23
Today, 11:09
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Weekly trading forecast November 12 - 16
Weekly trading forecast November 12 - 16
12.11.2018
Market reviews