Weekly Market Overview 17 to 22 March -2024

Market Overview:

The forex market experienced notable movement in forex trading forecasts during the reporting period, driven by various factors influencing major currency pairs and market sentiment. Notably, firmer inflation prints in the United States contributed to Dollar strength and increased speculation regarding future Federal Reserve policy actions. Additionally, market focus remained on key currency pairs such as EUR/USD, GBP/USD, and USD/JPY, with anticipation surrounding potential policy adjustments by the Bank of Japan.

Major Currency Pair Performance:

EUR/USD: The EUR/USD pair retreated from recent peaks, reflecting shifts in market sentiment and investor positioning.

GBP/USD: Similar to EUR/USD, GBP/USD also experienced a downturn from recent highs amid evolving economic outlooks and geopolitical developments.

USD/JPY: Market attention was drawn to USD/JPY as traders monitored the Bank of Japan’s upcoming policy decisions and their potential impact on the Japanese yen.

EURSD Technical Outlook on SMC

According to the Daily view, the price break is a swing low and now it is retracing to the upside targeting the higher time frame POIIn the 4-hour time frame, the price break is a short-term swing high indicating more upcoming bullish. There are two short-term POIs below the recent Price. Price may retest those POIs before moving bullish.

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USD Index (DXY) Performance:

The USD Index (DXY) demonstrated strength throughout the reporting period, surpassing the critical 103.00 level. This bullish momentum was fueled by rising speculation of a Federal Reserve interest rate cut in the near term, along with adjustments in market expectations regarding the number of rate cuts anticipated for the year.

Upcoming Economic Events:

March 18: The release of the NAHB Housing Market Index is scheduled, providing insights into the sentiment and activity within the US housing market.

March 19: Building Permits and Housing Starts reports are anticipated, offering further clarity on the performance and outlook of the US housing sector.

March 20: The Federal Reserve is set to convene for its scheduled meeting, accompanied by a press conference featuring Chair Jerome Powell. Market participants eagerly await policy announcements and insights into the Fed’s monetary policy stance.

Analysis and Outlook:

Looking ahead, forex traders are advised to closely monitor upcoming economic events, including housing market indicators and the Federal Reserve meeting. These events are expected to significantly influence market sentiment and currency movements, presenting opportunities for strategic trading decisions.

Conclusion:

The forex market continues to navigate through dynamic shifts in economic data releases, central bank policies, and geopolitical developments. As traders prepare for upcoming events, it is crucial to remain vigilant, adapt to evolving market conditions, and employ risk management strategies to mitigate potential uncertainties.

Disclaimer: This report is for informational purposes only and should not be construed as financial advice. Forex traders are encouraged to conduct thorough research and consult with qualified professionals before making trading decisions.