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 ripped the benefits of the strong NFP results, whilst the euro and pound held firm, awaiting new proposals from PM May. The Prime Minister is working on alternatives and is expected to have new proposals for Brussels for next week. In the meantime, oil continued its strong showing amidst tightening supply.
Slow and steady rise for the greenback with risk appetite showing signs of bouncing back. The dollar/yen pair hit a 5-week high with US treasury yields rebounding from their post-Fed meeting lows. Euro and pound hover on the low whilst gold crazy run of increase finally sees comes to a stop.
Dollar kept its upward trend on Wednesday as there were no shocking revelations from Trump addressing the state of the union. Brexit aside, the pound saw a decrease after weak services PMI results. The expectations for some meaningful developments in the USA-China trade talks were not met, disappointing market participants.
With overall trade uncertainty and the ambiguous state of the Brexit deal, it’s only natural that risk outlook was mixed on Thursday. In saying that, the greenback gained some ground hitting a 2-week high on the back of a drop in the major currencies. Even though Fed Powell said the economy “is in a good place”, market players were still reserved, waiting on the development of the US-China trade talks. Kiwi and Australian dollar fell together, with the weak job data being an obvious factor.
Dollar and Yen led the way in safety flows whilst the Euro subsided to the bearish look on growth forecasts. The pound on the contrary, seemed to have recovered after the Bank of England dip with the dollar from down under falling even more due to the RBA adverse outlook. Overall, risk appetite takes a step back on fears and uncertainty about trade and economic growth.
Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances or needs.
Risk warning: Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.38% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please consider our Risk Disclosure.