NEW YORK, N.Y. – The foreign exchange market saw the strongest rise for the New Zealand dollar last week and the biggest drop for the US Dollar, which is still looking towards bearish sessions moving forward, while other major currency pairs are looking for more bullish sentiments.
There are some signs of long-term trends showing in the foreign exchange market, which most are bullish for most of the major currencies in the world, except for the US dollar and the Japanese yen. Both currencies were last seen continuing to trade weaker today, especially the US dollar.
The declines followed the most optimistic sentiment in the global market after positive headlines regarding the trade negotiations between the US and China, with phase one of the agreement scheduled for signing early in 2020. Major stocks indexes in the US, especially the S&P 500 index, has been riding on optimistic market sentiment, closing the week with another all-time high, while the US dollar is dragging its price even lower.
Most analysts and market players are also leaning towards the sentiment that the latest quarter-point slash in the interest rate marks the last rate cut following the statement from Jerome Powell, suggesting that no rate cuts will likely happen in the future.
Based on the weekly chart, the US dollar is still showing bearish signs, which is expected to continue until next week’s trading. The previous week, it pierced a bearish candlestick that is very close to the lowermost price range. Last week’s price of the US dollar marks below the level of its price from three months ago and only a little over its price from six months ago.
Meanwhile, the S&P 500 index’s bullish signs are predicted to continue, with the index looking towards further gains in the coming week.
Elsewhere in the market, the price of the major currency pair, EUR/USD, recorded its biggest weekly close at the end of last week in the past five months ago. Friday’s sentiment was mostly bullish towards the volatility, marking as high as twice the average mark. While the resistance remains at 1.1200 points, it shows signs that a long-term and major breakout is in its midst.
The NZD/USD pair was mostly optimistic as well, recording its biggest weekly close at the end of the week in the past five months after breaking a couple of major resistance levels. Its strong bullish momentum for both short and medium-term is expected to continue in the coming week.