In the ever-fluctuating world of trading and investing, it’s vital to keep up-to-date with the latest market trends and data in order to make knowledgeable decisions. This article delves into the significant market figures of the previous week, elucidating their implications for traders and investors.
The article covers a plethora of critical aspects such as significant earnings, trading figures, and financial instruments, whilst also scrutinizing the effects of the global market update on major currency pairs.
Top 5 Payouts:
Last week, the highest payouts recorded were $38,145; $32,651; $30,815; $28,515; & $25,679 respectively. These substantial payout amounts demonstrate the volatility of the market and the presence of numerous profitable opportunities for traders. The significant payouts indicate that traders were successful in capitalizing on these opportunities by making astute investment decisions.
Weekly Trading Stats:
Last week, traders were paid out a sum of $1,105,231, which was distributed among 890 participants. This showcases a considerable level of trader involvement in the market, with those making shrewd investment choices reaping considerable earnings.
Over this time span, a whopping total of 644,727trades were executed, involving a combined volume of 429,693 lots. These numbers highlight the remarkable trading activity, suggesting a market landscape typified by volatility and constant shifts.
Weekly Trading Instruments:
The week saw substantial trading activity involving notable pairs such as XAUUSD, EURUSD, US30, NDX100, and GBPUSD These pairs typically appeal to traders and investors due to their inherent volatility, thereby enhancing their investment attractiveness. The sizable trading volume associated with these pairs demonstrates their high demand throughout the week, offering traders prospective avenues for profit.
Among all the currency pairs, AUDUSD, USDJPY, and GBPUSD performed exceptionally well, achieving winning percentages of 53.94%, 52.77% and 51.52% respectively. This indicates that traders engaged with these pairs might have reaped impressive gains.
On the other hand, the currency pairs of USDCHF, CADJPY, and EURCAD did not fare well, posting losing percentages of 56.08%, 54.27%, and 54.22% respectively. This suggests that traders who ventured into these pairs may have sustained losses.
|| US Dollar Rebounds After Plummeting to a 15-Month Low! Will the Recovery Continue? ||
Global Market Update:
- The US Dollar Index (DXY) experienced a slight recovery after plunging to a 15-month low, signaling potential changes in the global currency market. Soft US inflation data, with June’s CPI and Core CPI falling short of expectations, has raised speculations about a more cautious approach from the Federal Reserve.
As a result, market participants anticipate fewer rate hikes and a stable Federal Funds Rate in the coming months. The DXY’s bounce-back brings hope to USD investors, but will the recovery persist?
- June’s US CPI growth of 3.0% YoY, below the forecasted 3.1%, coupled with a 0.5% decline in Core CPI, has stirred uncertainty in the financial markets. Additionally, June’s PPI figures also fell short of expectations, adding to concerns about the strength of the US economy.
With these conditions, market sentiment has shifted, projecting a reduced likelihood of aggressive rate hikes by the Federal Reserve. The US Dollar Index has shown signs of stabilization, but will this recovery be sustained amidst evolving economic dynamics?
- EUR/USD is currently facing a critical juncture as bulls have dominated the market, but there are indications that the bears may soon take control. Key support levels are being tested, suggesting a potential break in the near future. While the Euro is currently showing strength, underlying momentum hints at a possible shift in sentiment.
On the other hand, the US Dollar has experienced a correction as investors interpret the charts and anticipate that the Federal Reserve may be approaching the end of its rate hike cycle due to subdued inflation.
EUR/USD: Rabobank Expects EUR/USD to Trade Lower at Year-End Amidst Soft USD and Economic Challenges
- Soft USD outlook: USD is likely to remain soft in the near term due to disinflationary signals and skepticism about Fed rate hikes.
- Limited gains for EUR/USD: ECB rate hike cycle approaching peak, suggesting struggles for further EUR/USD gains beyond summer.
- Economic headwinds and US recession risks: Eurozone challenges and potential US recession strengthen the case for EUR/USD trading lower into year-end and early 2024.
GBP/USD: GBP/USD Faces Bearish Bias as Bears Eye Significant Correction
- Bearish sentiment: GBP/USD is showing signs of fatigue in the bullish momentum, attracting the attention of bears who anticipate a significant correction.
- Week ahead: The upcoming week is expected to hold a bearish bias for GBP/USD, indicating potential downward movement in the exchange rate.
- UK economic data impact: Despite GBP/USD experiencing a sixth consecutive day of gains following better-than-expected UK economic data, top-down analysis suggests a shift towards a more bearish outlook.
EUR/JPY: EUR/JPY Bears Eyeing 152.20 with 61.8% Ratio in Focus
- Bearish sentiment: Bears are actively observing EUR/JPY and targeting a potential downside move towards the 152.20 level, with a focus on the 61.8% Fibonacci retracement ratio.
- Firm Euro and bullish control: While the Euro has remained strong and bulls continue to dominate, the attention is shifting towards the Japanese Yen and its impact on EUR/JPY.
- Technical analysis and bearish bias: Despite EUR/JPY trading higher on Friday, a closer look at technical analysis reveals a bearish bias, indicating the potential for a downward shift in the exchange rate.
AUD/USD: AUD/USD Retreats as USD Sell-off Pauses on US Confidence Data
- Weekly gain for AUD/USD: Despite a retreat below 0.6850, AUD/USD is poised to make a 2.40% weekly gain, marking its highest level in 2023.
- USD supported by US confidence data: The USD received some support after the release of positive University of Michigan (UoM) Consumer Confidence Index data.
- DXY Index stabilizes but remains vulnerable: The DXY Index stabilized below 100.00, but its vulnerability persists, indicating potential further movement for AUD/USD.
NZD/USD: NZD/USD Retraces from 5-Month Highs as US Consumer Sentiment Improves
- Retracement from highs: NZD/USD pulls back from five-month highs above 0.6400, driven by profit-taking ahead of the weekend and easing US inflation concerns.
- Impact of US economic data: US economic data for the week revealed a disinflationary trend, reducing expectations of further rate hikes beyond the anticipated July FOMC decision.
- RBNZ decision and NZD performance: Despite the Reserve Bank of New Zealand (RBNZ) holding rates steady, the New Zealand Dollar (NZD) is set to end the week with solid gains of over 2.70% against the US Dollar (USD).
GOLD:
XAU/USD Nears $1,920 as USD Index Momentum Wanes:
- One more rate hike expected: The market anticipates only one more rate hike by the Federal Reserve, leading to a significant gain in the Gold price.
- Sideways trend expected: Commerzbank agrees with the market sentiment and forecasts a sideways trend for the Gold price in the coming weeks.
- Potential for rate cuts: If the market begins discussing the possibility of rate cuts, Gold prices may continue to rise.
SILVER:
Silver Price Struggles to Break $29 as USD Index Rebounds, US Retail Sales in Focus:
- Loss of upside momentum: Silver price (XAG/USD) faces selling pressure as it attempts to surpass the crucial resistance level of $29.00, while the US Dollar Index (DXY) rebounds, impacting the white metal’s performance.
- US Retail Sales data awaited: Market focus turns to the upcoming release of the monthly US Retail Sales data for June, with expectations of a 0.5% expansion compared to the previous rate of 0.3%.
- Rebound in USD and inflation pressures: The US Dollar Index has experienced a rebound after a six-day decline, driven by easing price pressures in the US economy and households adjusting spending due to higher inflationary pressures.
OIL:
WTI Price Retreated after Rejection from 200-day SMA, Still Set for Weekly Gains:
- Profit-taking and price retreat: WTI price experienced a retreat near $75.50 as bulls took profits ahead of the weekend, following a three-day winning streak.
- Rejection at 200-day SMA: The price of WTI was rejected twice this week at the 200-day Simple Moving Average (SMA) level of $77.17, indicating some weakness in the market.
- USD weakness and dovish bets: Despite some recovery in the USD on Friday, the currency remains vulnerable due to soft inflation figures and dovish bets on the Federal Reserve, which may limit WTI losses.
Watch out for Next Week’s Important Dates
- On 24th July, the United States S&P PMI report will come out. A figure that is higher than anticipated should be viewed as positive (bullish) for the USD, while a figure that is lower than anticipated should be viewed as unfavorable (bearish).
- On 20th July, the United States Initial Jobless Claims report will significantly impact US bond and stock markets. A higher-than-expected figure should be seen as negative (bearish) for the USD, while a lower-than-expected figure should be positive (Bullish) for the USD.
- It is essential to pay attention to the United States New Home Sales report on the 26th of July as it may significantly impact major currencies. A higher-than-expected figure should be Positive (bullish) for the USD while a lower-than-expected figure should be seen as negative (bearish) for the USD.
