Our Weekly Forex Recap will give you some of the market highlights from the past week, keeping you up to date with events and currency movements that move the needle in the Forex industry.
The Dollar started off the week on the wrong foot mainly due to the US shutdown. The dollar weakness and expectations on Fed pause helped gold to reach its highest limits in 7 months. The Euro managed to reach a two-week high whilst the pound maintained its three-month high altitude due to Brexit optimism ahead of the vote.
Yen made some advances on Tuesday whilst stocks saw a drop off after US filed tech charges against China conglomerate Huawei for violations on Iranian sanctions and stealing tech from a US firm. This was not the best piece of news for the economy as this only adds more fuel to an already tense relationship between China and the US. Talking of the US, the dollar maintained its subdued performance based on speculation about potential Fed changes to its balance sheet runoff. The Euro kept its positive uptick, unphased by President Draghi’s comments.
An overall clouded market sentiment saw some light with Apple recording positive earnings. After MPs voted rejecting a no-deal Brexit, pound went through a slight slump of 0.7%. The Euro edged up to a two-week high on the back of a weak dollar. Gold climbed again on a new 8-month high taking advantage of the turmoil created by Brexit and the weakening dollar.
A new day but not a different look for the dollar as the greenback reached a three-week low after the Fed strikes passive tone. On the contrary, the Aussie and Kiwi dollars enjoyed near two-month highs whilst oil kept its upward trend in the midst of Venezuelan upheaval and as OPEC cuts stiffen supply.
Donald Trump tweets were the reason for optimism about the US-China trade talks even though a final resolution is not expected until the Presidents of the two countries meet. The imminent NFP helped the dollar hold a steady position, a first for the greenback in a few weeks. The Euro lost some ground following Bundesbank chief comments that “the dip in growth is likely to extend into the current year”.
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