The previous week witnessed the gold prices rising in almost every trading session. At the start, the volatility was low since investors were waiting for the US inflation data to be released by the Federal Reserve.
Since the gold prices were rising, traders assumed a slowdown in US inflation, slowing the Fed interest rates. With the financial market fluctuating, traders looked for the best forex trading platforms to get more information.
Many realized that the Fed prevented the metal from clearing above 1,800 USD. It resulted in the Euro rallying since the US CPI report fell softer than expected. Similarly, monthly core inflation dropped from the 0.5% forecast to 0.3%, with the monthly inflation rate falling flat.
The news immensely hurt the Fed rate hike’s outlook, causing traders to gain more data. Many turned to an OctaFX broker review to learn about the most recent market insights with their team of analysts’ reports.
However, this development weakened the EUR/USD pair during the weekend. On the other hand, the US dollar gradually recovered to better-than-expected numbers. Similarly, the British Pound’s performance mirrored the euro.
A disappointing US CPI report was a major reason behind the GBP/USD pair’s performance. However, the pair lost its gains with investors fearing a rate hike by the BoE (Bank of England) and UK inflation hampering economic growth.
The market expects the Bank of England to increase interest rates by at least 115 basis points before the year ends. Besides this, the USD/CAD pair dropped to its two-month low, reaching as low as a weak US dollar.
Volatility remained low while Canada did not release major economic information during the week. However, volatility is expected to surge even more since Canada published its retail sales and inflation numbers this week.