Forex price action 1 hour

The forex trading week has come and gone. Time to take a look at what action driving forex price action. With that said, half of the top 10 movers are Swissy pairs, with the Swissy winning out in all of them.

Swissy strength was therefore a main theme this week. Did that surprise you? The Swissy got its price kicked during the past action weeks. Even so, action Swissy was tracking the euro for the most part.

Also Swissy pairs deviated from the euro on two occasions, though, as marked below. And the same can be said for Thursday, but risk aversion prevailed at the time, so Swissy strength did make some sense at least. Anyhow, whatever caused these weird bouts of strength, they certainly helped to give the Swissy the edge it needed to come out on top this week.

Iron ore prices climbed on Monday, thanks to higher Chinese steel prices. And steel prices rose, market analysts saybecause of lower Chinese steel supply due to the credit crunch in China. Instead of getting a bullish boost, however, the Aussie got slapped lower.

Latent risks in the housing market have been rising in price years, because significant house price appreciation in the core housing markets of Sydney and Melbourne has price to very high and forex household indebtedness. Aussie bulls kept chipping away, though, so the Aussie eventually recovered from hour losses and even ended up a net winner for the day.

The following day, iron ore took a plunge because Chinese steel prices took hits. And market analysts blamed the side in steel prices on expectations that demand for steel will fall because the rainy season has apparently arrived, as well as signs that the Chinese property market was starting to slow down.

Instead of plunging with iron ore prices, however, the Aussie held steady instead. Heck, it even found buyers later.

There were no dovish surprises in the minutes. Moreover, the minutes also revealed that the RBA was optimistic on wage growth when it noted the following emphasis mine: Wage growth had remained particularly low in the mining sector. Liaison suggested hour, while wage growth is likely to remain subdued for some time yet, there had been isolated reports of localised and skills-specific labour shortages feeding action higher wages.

Going back to the housing market, the RBA reiterated that emphasis mine: Looking at the details, house prices in Sydney increased by 3. And that, plus the earlier slide in iron ore prices, very likely weighed down on the Aussie.

After that, iron action prices slid even lower on Wednesday and risk aversion prevailed, so the Aussie took another broad-based hit.

Risk aversion persisted on Thursday, but iron ore prices finally stabilized. And so the Aussie finally got a chance to lick its wounds. As to why iron ore prices finally found a bottom, market analysts attributed that to higher steel prices because of short-term speculative activity. I kid you not. Anyhow, iron ore extended its gains a bit on Friday. The Aussie had a more mixed performance on Friday, but many Aussie pairs did follow suit.

The Swissy managed to edge out a win against the Kiwi, so the Kiwi was price the second strongest currency this week. Bears were waiting in the bushes, though, and they price attacked during the late Asian session. Profit-taking by Kiwi bulls after five consecutive weeks of Kiwi strength is a possibility, though, forex since a dairy forex and the RBNZ statement were coming up.

This is the first fall after consecutive increases during the hour previous auctions, which is a real bummer and is very likely why bearish pressure was applied on the Kiwi ahead of the RBNZ statement. When the RBNZ finally released it official press statementhowever, the Kiwi action by jumping higher and then steadily climbing higher still while ignoring the fact that risk aversion was the name of the game. This heavily implies that the RBNZ thinks the Kiwi still has room to move higher before it would have a negative impact on exports, which likely enticed forex bulls to jump in or scared off some bears.

Short-term traders probably had a very good week, though, since there was decent two-way action on the pound this week. Anyhow, Brexit and political drama in the U. And when Carney did finally deliver his speech, he said the following emphasis mine: But all expect that any changes would be limited in scope and gradual in pace.

In the coming months, I would like to see the extent to which weaker consumption growth is offset by other price of demand, whether wages begin to firm, and more generally, how the economy reacts to the prospect of tighter financial price and the reality of Brexit negotiations. I would just like to point out here that Carney stressed that his dovish view is his own and that other MPC members have their own views. Even so, the market reacted as if Carney spoke for the BOE as a whole and dumped the pound prettty hard.

Fortunately for pound bulls, BOE Chief Economist Andy Haldane gave a speech the following day. C ertainly, I forex such a tightening is likely to be needed well ahead of hour market expectations. I felt then there were strong grounds for holding back until later in the year, for two reasons. First, despite upwards pressure on inflation, there are still few signs of higher wage growth.

And despite robust surveys, there is still some chance of a hour than expected slowing in the economy. Both are reasons for monetary policy not to rush its fences. Nor does it need to do so, given the slow price of nominal pressures in the economy. This price thrown up a dust-cloud of uncertainty.

Financial markets-wise, that is manifesting itself in a weaker exchange rate. It is unclear what twists and turns lie ahead, with potentially important implications for asset prices and, at least potentially, confidence among businesses and consumers. Hour do not think adding a twist or a turn from monetary policy would, in this action, be especially helpful in building confidence, at least until the dust-cloud has started to settle.

As and when the MPC begins this process of normalising hour policy, it will be a sign of the economy itself having begun to normalise. By the way, Brexit and U. There was even a rumor this week courtesy of The Telegraph that the DUP was supposedly playing forex, demanding blackmailing?

Anyhow, a potentially interesting week for the pound ahead, so make sure to keep an eye on the pound. The messy price action implies that opposing currency price action was in play and that the Greenback probably lucked out.

Monetary policy divergence between the BOE and the Fed later got killed when Haldane got a chance to speak and shared hour hawkish bias, though. Anyhow, the Forex started dipping after that. Other than profit-taking, there was no clear reason why, though. Still, a win is a win. As you can see in the chart above and the bullet points below, the Loonie got dragged down by another week of slumping oil prices.

And as usual, market analysts were blaming the slide in oil prices on concerns that the glut is here to stay. This week, however, they were pinning price blame specifically on the rise in U. The first happened on Monday. In addition, the increase in sales was broad-based since nine out of the 11 retail store types reported higher sales.

Year-on-year, this translates to a 1. Even so, there was no follow-though selling, probably because recovering oil prices provided support. As such, the euro fell victim to hour currency price action. Other than that, there was news late on Friday that the ECB ordered forex embattled Italian banks to be wound up, namely Veneto Banca and Banca Popolare di Vicenza. The yen had a mixed performance action week, so opposing currency price action was action play.

With that said, the yen was a net loser on Monday since bond yields surged after New York Fed President William Dudley gave his hawkish speech, market analysts say. Bond yields went back down on Tuesday, so the yen rebounded. Market analysts pointed mainly forex wavering faith that the Fed can pull off another hike amid deteriorating inflation indicators.

After that, bond yields moved mostly sideways from Wednesday to Thursday, so the yen moved somewhat sideways as well, although it is at this time that opposing currencies apparently took advantage of the yen or got taken advantage of by the yen.

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