Bleeding Red, The Market Is 'Shaking' Heading Into The Weekend
The currency market is getting lively towards the end of the week with aggressive price movements displayed on Wednesday yesterday involving several currencies including the US dollar and the Pound.The US dollar surged as it headed into the opening of the New York session driven by an increase in US Treasury yields.The market expects interest rate hikes to be implemented by the Federal Reserve (Fed) at its early May meeting, before starting to halt rate hikes at subsequent meetings.Meanwhile, the European Central Bank (ECB) and the Bank of England (BOE) are both expected to continue raising interest rates.This is reinforced by the indication from the UK inflation data published in the European session yesterday showing that inflation is still above the 10% level.The Pound continued to surge in reaction to the data being published.Commodity currencies including the Australian dollar and the New Zealand dollar traded gloomy after the US dollar regained dominance.The New Zealand dollar significantly weakened at the opening of the Asian trading session this morning following the New Zealand inflation reading published a while ago showing a lower figure (1.2%) than expected to increase (1.5%).Gold trading also witnessed a price plunge after failing to hold on to the $2,000 level with a decline reaching around $1,970 before a price rebound.The market's focus will be on the focus data that will be published after this, such as the US unemployment claims data and the manufacturing and services PMI data on Friday.Investors are advised to be more cautious heading into increasingly risky week-end trades.
The currency market is getting lively towards the end of the week with aggressive price movements displayed on Wednesday yesterday involving several currencies including the US dollar and the Pound.
The US dollar surged as it headed into the opening of the New York session driven by an increase in US Treasury yields.
The market expects interest rate hikes to be implemented by the Federal Reserve (Fed) at its early May meeting, before starting to halt rate hikes at subsequent meetings.
Meanwhile, the European Central Bank (ECB) and the Bank of England (BOE) are both expected to continue raising interest rates.
This is reinforced by the indication from the UK inflation data published in the European session yesterday showing that inflation is still above the 10% level.
The Pound continued to surge in reaction to the data being published.
Commodity currencies including the Australian dollar and the New Zealand dollar traded gloomy after the US dollar regained dominance.
The New Zealand dollar significantly weakened at the opening of the Asian trading session this morning following the New Zealand inflation reading published a while ago showing a lower figure (1.2%) than expected to increase (1.5%).
Gold trading also witnessed a price plunge after failing to hold on to the $2,000 level with a decline reaching around $1,970 before a price rebound.
The market's focus will be on the focus data that will be published after this, such as the US unemployment claims data and the manufacturing and services PMI data on Friday.
Investors are advised to be more cautious heading into increasingly risky week-end trades.
