Forexlive Americas FX news wrap: USD ends week with solid gains against all major currencies


The US dollar was the strongest currency this week and the strongest currency today. The NZD was the weakest of the majors today.

Strongest to weakest major currencies

The greenback this week rose against all major currencies, helped by more hawkish comments from the Federal Reserve and global concerns over growth in China, the eurozone and the UK due to rising currency. inflation, Covid headwinds, rising US yields and the war in Ukraine.

EURUSD fell -217 pips -2.12% on the week (USD up 2.12%). The high price was reached on Monday, the low price was today. Yesterday the pair fell below the extreme lower that confined the pair in July and early August at 1.0096. The move tilted the downward bias even further and the selling continued into the afternoon session in New York where the low price reached 1.0031, just 31 pips from the parity level. Recall that in July the low reached 0.9951 before starting the run towards the August high at 1.03678.

The GBPUSD also traded at its high for the week on Monday (at 1.2147). For the week, the USD was up 2.56% against the GBP. After bouncing higher on Tuesday and falling on Wednesday just ahead of Monday’s high (high hit 1.2142), buyers turned to sellers and the pair ends a 3-day downward streak . The low price reached 1.1791 today. The lowest price for the year and dating back to March 2020 hit 1.17594. Key support level for next week’s trading.

USDJPY after swinging high and low on Monday and ending slightly lower that day (the low reached 132.54), the pair climbed higher on each of the next 4 trading days. For the week, the greenback was up 2.52% against the yen. Today’s high price extended to 137.22 which took the pair just above a swing zone between 137.00 and 137.152. The price pulled back at the close and closes just below this zone at 136.86. Next week, this area will be a key barometer for early week trading.

USDCHF closed higher on each of its 5 trading days this week (dollar up). The dollar gained 1.85% against the CHF.

AUDUSD (dollar up -3.45%) and NZDUSD closed lower daily (USD up -4.33%). The RBNZ rate hike of 50 basis points did little to support the NZD against the greenback.

A snapshot of other markets at the end of the week shows:

  • Spot gold is down $12 or -0.69% at $1746.89.
  • Spot Silver is down -$0.46 or -2.39% at $19.04.
  • Crude Oil is trading virtually unchanged at $90.02 after a high-to-low session
  • Bitcoin is trading sharply lower on the day at $21,320. Last Friday, the price closed at $24,407. So for the week the price is down $3087

In the US stock market this week, major indices close lower for the 1st time in 5 weeks of trading:

  • The Dow Jones industrial average fell -0.1%
  • The S&P index fell -1.2%
  • The NASDAQ index fell -2.62%
  • Russell 2000 fell -2.92%

On the US debt market:

  • The 2-year yield is trading at 3.24%. Last Friday, it stood at 3.253%
  • The 5-year is at 3.098% after closing last week at 2.960%
  • The 10-year is at 2.972% after closing last week at 2.837%
  • The 30-year is at 3.213% after closing last week at 3.115%


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