BluetonaFX - Forex Weekly Recap
Hi Traders!
Forex Weekly Recap for 19–23 June, 2023:
Fundamentals
This week was a very eventful one, filled with major announcements from central banks and key data releases.
Less-hawkish-than-expected meeting minutes from the Bank Of Japan (BOJ) and Reserve Bank of Australia (RBA) weakened both the Australian dollar and Japanese yen throughout the week.
The U.K. announced higher-than-expected inflation figures in May, which led to concerns about the UK's economic growth and caused weakness in the British pound. However, there was a small bounce back following an interest rate hike from the Bank Of England (BOE).
The US dollar strengthened following hawkish testimony from Federal Reserve Governor Powell. Additionally, Treasury Secretary Yellen said she sees a lower U.S. recession risk and that a consumer slowdown is needed to contain inflation.
After a tentative start to the week, the Euro started gaining ground mid-week when the European Central Bank’s (ECB) hawkish bias stood out while markets worried about global growth trends. ECB Executive Board member Schnabel sees prices rising due to corporate profits and higher salaries.
Key Data
US Initial weekly jobless claims for the week ending June 17: 264K vs. 271K the previous week
Germany Producer Prices Index for May: -1.4% m/m (-0.6% m/m forecast; +0.3% m/m previous)
The Bank of England confirmed a 50 basis point interest rate hike to 5.00% with a 7-2 vote.
The U.K.'s inflation rate remained at 8.7% y/y in May.
UK Retail sales slowed down from 0.5% m/m to 0.3% m/m in May (compared to -0.2% m/m expected).
RBA meeting minutes showed rate hike arguments were "finely balanced," as members weighed inflation risks, a tight labour market, and rising home prices.
The BOJ's meeting minutes showed one member wanting to ensure that their policy "does not fall behind the curve" as wages and inflation accelerate.
Technicals
AUDUSD 1W Chart
The Australian dollar was very bearish this week. The chart shows a bearish engulfing candle, which suggests that the bearish momentum will continue. There is a support level at 0.64583, which is May 2023's low.
USDJPY 1W Chart
The US dollar is gaining huge momentum against the Japanese yen, which must cause some concern for the Japanese economy. It looks like it is heading for the Apex level at 151.946. This is a level the market has not been at in more than 30 years. Before that level, there is a vector level at 145.902.
EURUSD 1W Chart
EURUSD reached 1.10000 again after 5 weeks and has now pulled back from the psychological level. The price action on the chart suggests that there may be a triangle pattern forming. There is another resistance level above 1.10000 at 1.10956.
GBPUSD 1W Chart
After breaking the 13-month resistance level of 1.26670 the previous week, this week traders retested the resistance break of 1.26670, and the market is still trading above the resistance level. If the bullish momentum continues, the next long-term resistance level will be the psychological 1.30000 level.
We will be back with another Forex Weekly Recap report next week.
Best of luck for the trading week ahead. Trade safely and responsibly.
BluetonaFX
Forex Weekly Recap for 19–23 June, 2023:
Fundamentals
This week was a very eventful one, filled with major announcements from central banks and key data releases.
Less-hawkish-than-expected meeting minutes from the Bank Of Japan (BOJ) and Reserve Bank of Australia (RBA) weakened both the Australian dollar and Japanese yen throughout the week.
The U.K. announced higher-than-expected inflation figures in May, which led to concerns about the UK's economic growth and caused weakness in the British pound. However, there was a small bounce back following an interest rate hike from the Bank Of England (BOE).
The US dollar strengthened following hawkish testimony from Federal Reserve Governor Powell. Additionally, Treasury Secretary Yellen said she sees a lower U.S. recession risk and that a consumer slowdown is needed to contain inflation.
After a tentative start to the week, the Euro started gaining ground mid-week when the European Central Bank’s (ECB) hawkish bias stood out while markets worried about global growth trends. ECB Executive Board member Schnabel sees prices rising due to corporate profits and higher salaries.
Key Data
US Initial weekly jobless claims for the week ending June 17: 264K vs. 271K the previous week
Germany Producer Prices Index for May: -1.4% m/m (-0.6% m/m forecast; +0.3% m/m previous)
The Bank of England confirmed a 50 basis point interest rate hike to 5.00% with a 7-2 vote.
The U.K.'s inflation rate remained at 8.7% y/y in May.
UK Retail sales slowed down from 0.5% m/m to 0.3% m/m in May (compared to -0.2% m/m expected).
RBA meeting minutes showed rate hike arguments were "finely balanced," as members weighed inflation risks, a tight labour market, and rising home prices.
The BOJ's meeting minutes showed one member wanting to ensure that their policy "does not fall behind the curve" as wages and inflation accelerate.
Technicals
AUDUSD 1W Chart
The Australian dollar was very bearish this week. The chart shows a bearish engulfing candle, which suggests that the bearish momentum will continue. There is a support level at 0.64583, which is May 2023's low.
USDJPY 1W Chart
The US dollar is gaining huge momentum against the Japanese yen, which must cause some concern for the Japanese economy. It looks like it is heading for the Apex level at 151.946. This is a level the market has not been at in more than 30 years. Before that level, there is a vector level at 145.902.
EURUSD 1W Chart
EURUSD reached 1.10000 again after 5 weeks and has now pulled back from the psychological level. The price action on the chart suggests that there may be a triangle pattern forming. There is another resistance level above 1.10000 at 1.10956.
GBPUSD 1W Chart
After breaking the 13-month resistance level of 1.26670 the previous week, this week traders retested the resistance break of 1.26670, and the market is still trading above the resistance level. If the bullish momentum continues, the next long-term resistance level will be the psychological 1.30000 level.
We will be back with another Forex Weekly Recap report next week.
Best of luck for the trading week ahead. Trade safely and responsibly.
BluetonaFX
Penafian
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