Having a wide scope is useful whenever you decide on your trading strategy for any given week. This is why looking at fundamental analysis is always useful. This can have a big impact on how successful your forex day trading or CFD trading is. You will have to carefully choose where to invest your funds by properly analysing the available assets.
The last week has given us a market that is on the up. All the indicators show healthy growth. Several factors may affect the growth of the dollar. This is in terms of both the EUR/USD pair and the USD/JPY on the forex exchange.
We have seen analysts with a more positive sentiment. This is largely due to the improvement in data over payrolls, as the increase of 187K was lower than expectations. This pointed to the likelihood that the economy of the US may finally be stabilising, with inflation lower. This means that increases in interest rates by the Fed are significantly lower for the time being. So, this is good for forex patterns going into the future.
Key Metrics Supporting the Forex Patterns
On top of this, there was also data surrounding the GDP of the US. It turns out that it was lower than analysts’ expectations. The rate of increase over the year was only 2.1%, with the hike in earnings each hour only at 0.2%. This further supported the sentiment that the US economy was finally relaxing.
The bullish sentiment seems the way to go. Larger companies are in a good position for considerable growth at the start of this month. Something else supporting the sentiment is the price index data (PCE). It did not exceed analysts’ expectations, another good sign, increasing by 0.2%.
Even before the release of all this data, the dollar forex patterns have been doing well. The previous week showed good performance in the dollar and some commodities, including oil. Overall, we will have to see the results for forex day trading in the future.