Last week saw both the Fed and BOE raise interest rates by the expected 75bps. The initial reaction was negative as the Fed moved its terminal rate above 5% and risk assets were sold. Despite this Friday’s trading was strong and we ended the week with some market strength.
Euro underperformed during the week despite inflation beating expectations at 10.7%. The single currency lost against all majors bar the GBP.
GBP reversed all its previous gains as the Bank of England did raise rates by the expected 75bps. However, the pound fell as expectation of further aggressive rate hikes seems to be off the table and we may see a significant slowing in the pace of rate increases. The GBP fell around 2%.
Commodity currencies managed to post another positive week their third in a row as oil and other commodities rallied. AUD and CAd both rallied around 1% while NZD rallied 2%.
Oil prices move higher for a second week with WTI gaining around 45% to close in the mid $92 area.
The week ahead should be quieter as the market still seems to be trying to second guess the Fed and when they will pivot. This may not be as soon as expected with inflation still strong and this needs to be brought under control before the fed can consider reducing the pace of rate rises. Data wise is lighter than last week but still containing some important releases such as US bless and UK industrial production.
Weekly Majors Market Performance
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Cromwell FX Market View
Fed & BOE Hike; Payrolls Still Strong
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Peyman Khosravani is a global blockchain and digital transformation expert with a passion for marketing, futuristic ideas, analytics insights, startup businesses, and effective communications. He has extensive experience in blockchain and DeFi projects and is committed to using technology to bring justice and fairness to society and promote freedom. Peyman has worked with international organizations to improve digital transformation strategies and data-gathering strategies that help identify customer touchpoints and sources of data that tell the story of what is happening. With his expertise in blockchain, digital transformation, marketing, analytics insights, startup businesses, and effective communications, Peyman is dedicated to helping businesses succeed in the digital age. He believes that technology can be used as a tool for positive change in the world.
