Cromwell FX Market View Dollar Slumps After CPI Numbers

cromwell_weekly_mainimage_221122.jpg

This post was originally published on Trademakers

courtesy of trademakers

Last week saw the CPI number released. the YoY number met expectations however the market viewed the print as further fuel to the Feds fire to pause its tightening of interest rates. The USD fell significantly along with a risk asset rally.

 

The Euro finally had a good week helped by some good economic data as well as ECB members remaining hawkish. The single currency moved above 1.08 vs the USD mostly impart due to USD weakness but also moved closer vs the GBP to the 0.90 level.

 

GBP only managed to rally vs the USD as that sell off played out and failed to rally against any of the other majors. The GBP still looks very fragile and while the immediate economic mess of Liz truss seems to have been resolved the pound and the UK economy still looks very venerable.

 

Commodity currencies rallied as the risk on momentum entered the market. NZD and CAD both gained around 0.5% while the AUD outperformed with 1.5% gains vs the US Dollar.

Oil remains hugely volatile with big swings to either profit or loss on the week. Last week WTI rallied 8.7% closing around the $80 mark. This is somewhat due to the continued talk of the great China reopening.

 

The week ahead could continue the US Dollar sell off as markets look to the Fed for a pause. It is still unclear if the market view will win out or if the fed.

Weekly Majors Market Performance

cromwell_fx_marketview_170123

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

Dollar Slumps After CPI Numbers

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