Cromwell FX Market View All Hail the King Dollar

cromwell_chart_280922-1.png

This post was originally published on Trademakers

courtesy of trademakers

Last week saw levels of unprecedented volatility in the Foreign Exchange Markets. The Fed raised rates by 75bps and committed to continue the tightening cycle as it looks to control inflation. This in turn put significant pressure on risk assets. The week finished with the UK mini budget that sent GBP tumbling.

 

Euro moved lower as the USD strength and Russia escalating the situation in Ukraine piled pressure on the single currency. The ECB tone during the week was far more hawkish than we have seen previously but currently it is not enough to add any lift to the Euro.

 

GBP fell like a stone at the end of the week. The mini budget only seems to pour fuel on the fire as the pound lost 5% during the week from 1.14 to 1.08 at the close. The GBP is in significant trouble and the markets are looking to push the currency lower against all others. The GBP lost 2% vs the Euro.

 

Commodity currencies continued their downward theme with all of them suffering in the face of a risk off market. NZD was the worst performer losing over 4% vs the greenback

Oil prices followed the risk asset trend losing 7% over the week and breaking key support in the mid 80’s/ WTI closed sub $80 at $79.31 on the week.

 

The week ahead should follow the same trend. With the sell off so violent, with the exception of some kind of relief from central banks I would expect the trend to continue. Sentiment has moved progressively worse over the last few weeks and outlook remains very poor.

Weekly Majors Market Performance

cromwell_chart_280922

What is Cromwell FX?

Cromwell FX is a quantitative FX manager offering superior risk adjusted returns. The portfolio is the most liquid pairs . The strategy is fully automated and adhere to strict rick management procedures to control leverage and position limits.

The post Cromwell FX Market View

All Hail the King Dollar

first appeared on trademakers.

The post Cromwell FX Market View All Hail the King Dollar appeared first on JP Fund Services.

The post Cromwell FX Market View All Hail the King Dollar first appeared on trademakers.

Connect with SGT Markets

Follow us for the latest news & insights

Related Articles

bmams_cautionary-tales-of-poor-risk-management-no2-the-demise-of-bearings-bank-1024x538.jpg

Cautionary Tales of Poor Risk Management – No.2 The Demise of Bearings Bank

cromwell_weekly_mainimage_250523-1024x538.jpg

USD Debt Ceiling Agreement Close

cromwell_weekly_mainimage_250523-1024x538.jpg

USD Momentum Slows as Debt Ceiling Talks Continue

bmams_cautionary-tales-of-poor-risk-management-no1-the-collapse-of-ltcm-1024x538.jpg

Cautionary Tales of Poor Risk Management – No.1 The Collapse of LTCM

bmams_data-mining-shapes-the-new-age-of-trading-1024x538.jpg

Data Mining Shapes the New Age of Trading

cromwell_weekly_mainimage_170523-1024x538.jpg

USD Strong All Week & Debt Ceiling Worries Creep In

invest-in-europes-largest-green-hydrogen-plant

Invest in Europe’s largest green liquid hydrogen plant

bmams_blogpost_024-1024x538.jpg

Navigating Market Uncertainties Through Probabilistic Thinking

cromwell_weekly_mainimage_100523-copy-1024x538.jpg

Fed to end cycle

bmams_blogpost_023_main-1024x538.jpg

The Minimax Mindset for Conquering a Sophisticated Market

cromwell_weekly_mainimage_030523-1024x538.jpg

Stagflation?

cromwell_monthlyupdate-1024x538.jpg

Cromwell FX – April 2023