WEEKLY MARKET RECAP: September 05 – September 09, 2022

WEEKLY MARKET RECAP: September 05 – September 09, 2022

Happy Friday, traders!

Welcome to our weekly market wrap, where we look back at these last five trading days with a focus on the market news, economic data and headlines that had the most impact on the financial market and may continue to into the future for the US Dollar and other key correlated assets.

Week started with the US Labor Day, keeping closed US markets, and the volumes lower as usual on a public holiday. EURUSD started the bullish attempts to return to parity after dropping to 0.98, while Russia cut off the Energy supplies to Europe, and the weaker US ISM Services report which was weaker than expected.

Early on Tuesday, Reserve Bank of Australia announced increase in Cash Rates to 2.35% as expected, with the AUDUSD to try to remain above the 0.68 level after the release.

Middle of the week, we saw oil prices dropping to a seven-month low level. Reason behind the drop of prices despite the cut output from OPEC+ by 100,000 barrels on Monday, is the strong U.S. dollar, the aggressive rate hikes, a spike in bond yields, and a slowdown in China’s growth, as said by Tina Teng, an analyst at CMC Markets.

Later on that day and early Thursday, we saw EUR regaining parity with USD, ahead of ECB verdict, and weaker Treasury yields. Data came out at 12:15 GMT, with the ECB raising rates to 1.25% as expected, 75 basis points higher than what the rates were the month before. After the announcement, and for the following sessions, the European currency managed to climb again above parity versus the greenback.

Thanks for reading! Have a great weekend.

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