11/14/2022
π° WEEKLY FUNDAMENTAL ANALYSIS FOR THE FOREX MARKET
β ( 2022.11.14 - 2022.11.18 ) β
β οΈοΈ
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π₯ USD WEAKNESS π₯
β Even if the DOT PLOT SENTIMENT reaches 5%, US INFLATION DATA DROP and FED RATE HIKE SLOW when it is already at 4%, it is possible to sell USD in the future. Anyway, some EFFECT of US MID TERM ELECTION being won by DEMOCRATIC can come to the SHORT TERM MARKET in the near future.
β It is most likely to come as a DXY UP SIDE CORRECTION. So keep an eye on it. According to the current sentiment, the US dollar is NEGATIVE.
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π₯ YEN DEMAND π₯
β The main reason behind YEN being STRONG is FED RATE HIKE EXPECTATION DROPPING WITH US INFLATION. This situation was caused by the FED being quite dovish.
β Here, with USD DROP, there was a very good DEMAND for JPY, a SAFE HEAVEN ASSET, last week. When DXY DROP, JXY INDEX (JAPANESE YEN INDEX) DEMANDED very well with strong INVERSE CORRELATION between DXY and JXY. You were able to see how the YEN weakened and the DOLLAR became STRONG AGAINST YEN when INFLATION EXPECTATIONS were very high. Now it is happening backwards.
β When INFLATION EXPECTATIONS DROP and the DOLLAR is WEAK, JAPANESE YEN is becoming DEMAND. Therefore, there has been a DEMAND for TRADITIONAL SAFE HEAVEN. The reason for all this is MARKET SENTIMENT. Now the RATE HIKE SENTIMENT has DROPped in the MARKET.
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