Weekly Overview of CFD Movements - 19/09/2022 - 23/09/2022
September 21, 2022
Risk Disclaimer: The example below is for illustrative purposes only and is based on price movements derived from Contracts for Difference (CFDs). The calculations reflect hypothetical outcomes using historical or specified price data for the relevant instrument on the stated date and are not indicative of future performance. Any reliance placed on this material is strictly at the user’s own risk.
The euro fell against the dollar, as US CPI Inflation came in higher than expected increasing the likelihood of a sharper rate hike from the Fed this week.
The British pound fell sharply by the end of the week hit a thirty seven year low against the dollar. Sterling dropped after GDP, inflation and Retail Sales data suggested that a prolonged recession was likely.
The USD/Yen traded upwards over the week, with the pair coming close to 20 year highs as the dollar surged.
Gold prices sank last week to their lowest level since April 2020 on expectations of sharper interest rate hikes.
US stocks traded lower as market sentiment turned negative. On Friday Goldman Sachs cuts its GDP forecast for the US and projects a more aggressive Fed which is expected to increase unemployment.
Oil prices were slightly higher last week despite disappointing EIA inventories data. On the other hand, a potential Iranian nuclear deal appears to be going nowhere, amid the ongoing energy crisis.