Forex and other markets news
Weekly review. 21.11 - 27.11
Weekly review. 21.11 - 27.11
The Fed Is Softening The Rhetoric.
Summary
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RBNZ Interest Rate Decision increased to 4.25%
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German Ifo Business Climate Index (Nov) inched up to 86.3
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U.S. index dollar declined to 105.925
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Gold reached 1,755 USD
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Bitcoin traded around 16,500 USD
GOLD
Gold ended the week rising to 1,755 USD, bouncing off the important support level of 1,725 USD amid the high volatility of the dollar. Investors are waiting for the Fed meeting on December 14, at which the rate is expected to be raised by 50 bp. The last meeting minutes showed that almost all board members are in favor of easing monetary policy, but rates will remain at a high level until there is confident evidence of cooling of inflation. The key resistance levels for gold are 1,766 , 1,785 and 1,802 USD , while the support levels remain at 1,703 , 1,725 and 1,745 USD.
Currencies
German confidence remained at minimal levels in November, apparently it has nowhere to worsen, but there is little good in Germany, judging by macroeconomic data. A coming deep recession in Germany will increase dissatisfaction with the ECB's policy.
Real estate demand in the U.S. has been declining for the second quarter in a row, while the third quarter was even worse than the second. The White House has issued a law prohibiting Wall Street bankers from buying residential real estate, it is their actions that prevent the fall in housing prices in the U.S. and have created the worst conditions for Americans to buy a home since the 2008 mortgage crisis. If this is the case, then real estate prices will be much lower.
The volume of buyback in the U.S. is a record. This certainly supports the stock market, as the S&P500 would probably be trading 10% lower without it. Technically, the 200-day moving average on the week chart tends to be a strong support level for the S&P500, unless there is a recession. Given that the U.S. is heading straight for recession, we may expect a breakdown of the moving average.
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EURUSD rose to 1.04089 upon the weakened U.S. dollar.
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GBPUSD reached 1.20963 amid slightly positive U.K. economic data and weakening greenback.
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USDJPY fell to 139.080.
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AUDUSD grew up to 0.67464.
Cryptocurrencies
Bitcoin is trading at the level of 16,500 USD and it has fallen by 0.9% over the past week . There was a high volatility on the market in the beginning of the week. Bitcoin declined to 15,400 USD, but later the cryptocurrency market received support from the weakening of the dollar and the growth of stock indices in the U.S. umid release of the Fed minutes. First cryptocurrency sales intensified on the news of the possible bankruptcy of Genesis, which had 175 million USD stake in the collapsed FTX exchange. While there is no negative news, bitcoin is trying to get out of the pit where it was sent by Sam Bankman-Fried (FTX). Fear of a possible collapse keeps investors from taking active action. Buyers need to pass 17,150 and 18,500 USD in order to break the bearish sentiment.