The Week That Rocked Forex Markets 🚀— And What’s Next

Welcome to another power-packed edition of the Edge-Forex Blog, where we break down last week’s market shenanigans and give you a front-row seat to what’s brewing this week. No fluff, no filler — just the cold, hard truth about what’s moving forex markets. Buckle up, because last week’s action was as wild as a Wall Street wolfpack reunion .

Last Week’s Recap: Central Bank Mayhem & King Dollar’s Comeback

Rate Cut Parade: 4 Central Banks, 1 Wild Week

What do you get when four major central banks drop their rate decisions in the same week? Chaos, volatility, and profit potential galore . The SNB and BoC played Santa early, each delivering 50 basis point cuts, while the ECB was a bit more reserved with 25bps. Over in Australia, the RBA sat this one out, keeping rates steady .

Inflation Refuses to Tap Out

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All eyes were on the US inflation numbers, and boy, did they deliver. Core CPI came in at 0.3% MoM and 3.3% YoY, reminding everyone that inflation isn’t going down without a fight . The dollar flexed its muscles in response, posting nearly a 1% weekly gain . If you’re riding the USD train, this is your stop .

Fed Rate Cut Rumors: 95% Priced In?

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Markets think they’ve got the Fed’s next move figured out. A 25bp rate cut is 95% priced in for next week. But here’s the twist — the Fed’s been dropping hawkish hints, and if Powell comes in hot , we’re looking at a USD rally that’ll knock yen pairs off their feet . Play this one smart.

What’s Coming This Week: Fireworks in the Forex Arena

Monday: PMI Mania

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It’s a PMI extravaganza with flash readings from France, Germany, the Eurozone, and the UK. If you’re trading EUR or GBP, this is where you want to be . PMI surprises have a history of sending currency pairs on wild rides .

Tuesday: UK Wage Growth & Unemployment

If you’re a GBP trader, Tuesday’s like your Super Bowl . Wage growth and unemployment data are dropping, and if those numbers run hot , expect the pound to flex . Everyone’s watching for a hint on where the BoE might move next.

Wednesday: The Main Event — FOMC Decision

This is it, folks. The FOMC rate decision and the ever-dramatic dot plot projections . Markets expect a 25bp rate cut, but it’s Powell’s words that’ll shake up the forex world . Fewer 2025 rate cuts? Dollar surges .

Wednesday (Again): New Zealand GDP

Kiwi traders, eyes on the prize . Q3 GDP is forecast to be flat, but if it’s worse than expected, NZD’s getting tossed around like a beachball in a hurricane .

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Thursday: Triple Threat — Norges, Riksbank, and BoE Rate Decisions

Here’s the deal: The Norges Bank’s got currency weakness issues , so if they’re hawkish, NOK’s taking off . The Riksbank’s expected to cut 25bps, but if inflation’s stronger than thought, don’t rule out a pause . Bank of England? Flatline . No surprises expected there, but surprises happen when you least expect them.

Friday: Retail Sales & Personal Income Bonanza

It’s not over yet. China’s Loan Prime Rate kicks things off, but it’s the retail sales reports from the UK and Canada that could move the needle . Retail sales data has a sneaky way of blindsiding the market . Add in US personal income and spending reports, and you’ve got a recipe for end-of-week volatility .

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What’s the Play?

USDJPY — Watch for dollar strength on Powell’s hawkish pivot. This pair’s been a mover, and it’s not done yet.
GBPUSD — UK wage data will set the tone for the week. If wages heat up, the pound’s going for a run .
NZDUSD — Flat GDP? NZD could get slapped . Watch this for momentum plays.
EURUSD — PMI reports will shape the week’s narrative. If Germany’s data surprises, so will the euro .

Final Word

Big moves, big plays, and big profits . That’s this week’s forex forecast. PMIs, wage data, and FOMC theatrics are on deck, and the markets are hungry for action. If you’re not watching these moves, you’re playing yourself .