The Forex Market Insight Report shows charts on different major currencies and commodities, with brief commentaries on how new data releases and news cause movements in the market.

Headline:

  • Gold smashes through previous highs to close at record levels as investors seek an alternative to the USD and inflation hedge. Strong rumours of fresh central bank buyers causing the metal to surge.
  • AUD consolidates above 1.0900 and breaks through the sellers at 1.0950 to close the month at record highs.
  • Swiss National Bank president Hildebrand comments that “current monetary policy risks stoking inflation” saw CHF bought aggressively helping the EUR reach fresh highs.
  • US equity markets closed the week on a positive note with the Dow up 0.37%, S&P500 up 0.23% and Nasdaqup 0.04%

AUD/USD
After initially being sold on the back of investment funds rumoured selling around 1.0950 for end of month, AUD was helped by the incredible one way move in commodities and solid support was found under 1.0900. Although there is further selling interest rumoured around 1.1000, traders are content buying the dip and looking for a clean break higher later this week.

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XAU/USD
Gold posted fresh record highs after another solid buying session on Friday. Buying interest rumoured to be coming from Central Banks trying to remove USD risk from their portfolios and also hedging the expected surge in inflation. Gold opened lower as the exchange increased margin requirements but traders still calling it higher an happy to buy dips

EUR/USD
Traders continue to be bullish EUR/USD at the moment and helped along by strong comments from the president of the SNB, Eurozone currencies were supported on Friday as it almost looks certain that higher interest rates look set to continue. EUR does however look like it wants to consolidate in the short term but traders feeling a break topside is imminent.

GBP/USD
GBP found good support as all of the Eurozone currencies posted solid gains. From here traders are content to be buyers on the dip or on the break of resistance around 1.6750 looking for a push towards 1.6900 in the coming week. Only a break down through 1.6600 is a bearish signal and support on the dip is expected around those levels.

USD/JPY
USD/JPY again drifted lower and has now confirmed that the downtrend is back in existence in many trader’s minds. From here most happy to play it from the short side and looking to sell the rally so long as we don’t break back above 82.00.

AUD/JPY
AUD/JPY consolidated nicely on Friday night and traders still seem to have bullish feelings, especially give such a strong close in the AUD/USD late last. The USD/JPY drifting lower is not helping much but traders still content to be buyers chasing the yield in AUD and this is expected to continue unless we see a fundamental shift in the short term.

OIL
Oil played follow the leader as commodities closed the week extremely strongly and Oil consolidated above 113.00 a barrel. Traders are still playing it from the long side unless we have a significant downside break, but failure to break 115.00 in the first few days of the week could test their patience.

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