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.

HEADLINES:

  • USD continues to weaken across the majority of currencies as interest rate cycles in the rest of the world lead the US causing investors to seek yield elsewhere.
  • China announces its first trade deficit in seven years. The result was caused by an extreme increase in commodity prices.
  • US Treasury yields increase as traders increase their inflation concerns.
  • Gold makes record highs to finish the week with a strong session as commodities close the week higher across the board.
  • Oil surges again as NATO strikes end hopes of export resumption.

AUD/USD
The AUD continues it’s upward march towards 1.1000 and with such a strong close towards the highs of the week it gives a bullish signal to the start of the trading week. However, many traders are starting to be a little concerned that we haven’t had a pullback and that it may drift back towards 1.0400 where support lies before heading higher again.

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XAU/USD
A strong close to the week for gold as traders continue to be concerned about inflationary fears around the globe and buy gold as a store of wealth. The trend looks like continuing again this coming week and traders are looking to buy any pullback toward the support at 1465.00.

EUR/USD
USD weakness across the board helped EUR to fresh highs on Friday as investors searched for the higher yield of the EUR after the ECB decision to raise rates. This looks set to continue into the coming week as traders are happy to stay long or buy on the dip back towards

GBP/USD
GBP/USD was the underperformer of the major currencies as with no rate rise from the BoE last week, traders sought yield elsewhere as EUR/GBP was bought. 1.6400 was a major reversal point in back in late Feb, early March and traders are exercising caution, however the bullish sentiment continues to favor a push higher in the coming days.

USD/JPY
USD/JPY continued to consolidate between a wide range and this look set to continue into the week as traders continue to look for direction as to the next move. The trend is still higher, but in the short term, the range traders continue to make consistent money.

AUD/JPY
For the second consecutive day, AUD/JPY confirmed the uptrend on Friday and also allowed patient traders to get long at the right levels as 89.00/10 held strong. Traders happy to stay long now unless that level breaks, targeting 90.50 in the next few sessions.

Oil
Oil continues higher as traders aggressively bought with continued NATO airstrikes in Libya. Supply concerns are not slowing down and it doesn’t look like changing any time soon. This situation is keeping traders buying at any opportunity and unless this changes, traders will look for opportunities to get long.

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