Trading review for the previous week (Sep 4 - Sep 8)

Last week saw a mixed affair for global financial markets, with almost all indexes tumbling. In Europe, the DAX made a considerable gain of 1.28% during the week, trading at 12301.7. The FTSE was down by 0.93% to close at 7378.2, while the CAC40 slightly lost by 0.17%, locked at 5113.5.

In the US, the Nasdaq dropped by 1.14%, closing at 6360.8 at the end of last week. The Dow which deeply plunged on Monday finished up the week at 21799.7, declining by 0.83%. In Japan, the Nikkei 225 strongly fell by 1.91%, closing at 19274.1.

Currency markets

Heading into currency markets, the Euro found itself strengthening against its counterparts because European Central Bank President Mario Draghi hinted that the QE cutting process might be started in January 2018. Meanwhile, the U.S. initial unemployment claiming figure surged to a seasonally adjusted 298,000, the highest level since April 2015, causing the US Dollar to trade lower on last Thursday. Summarily, the Euro-Greenback advanced by 1.49% over the course of the week, trading at 1.20346.

The Sterling-Greenback currency pair has spent a week shooting up in a nod to Fed Chair Yellen’s dovish speeches on Aug 25 along with a set of U.S. negative economic releases, despite UK’s economic growth remaining sluggish. The British Pound climbed versus its US cousin by 1.86% to finish up at 1.31912 on last week’s close.

Rising geopolitical tensions caused by North Korea’s nuclear program continued to drive the Japanese Yen higher during the period from Sept 4 to Sept 8, sending the JPY higher versus its FX crosses. Combining with the weakening US Dollar, the USD/JPY pair ended up at 107.817 at the end of last week, strongly dropping by 2.18%.

Last Wednesday saw Bank of Canada Governor Stephen Poloz give fireworks by raising the key interest rate to 1% from the 0.75% level, making the Canadian Dollar head higher against most major currencies. Summarily, the Greenback-Loonie descended by 1.92% over the course of the week, trading at 1.21534.

The Australian Dollar ascended against its counterparts during the prior week thanks to positive second-quarter GDP data which was confirmed at 0.8% on Tuesday, fairly up from its previous release of 0.3%. Despite Reserve Bank of Australia Governor Philip Lowe endorsing a wait-and-see approach, the Aussie-Greenback still made a rise of 1.1% to finish at 0.80506 on last week’s close.

The NZD/USD currency pair has spent a week rallying energetically due to the currently bearish prospect of the US Dollar. The Kiwi-Greenback was generally up by 1.5% to close at 0.72585 at the end of last Friday’s New York trading session.

Commodities market

Gold prices (XAU/USD) continued to head higher last week thanks to the boosts from the weakening USD, while crude oil prices sharply fluctuated during the week but finished with a negligible change. In conclusion, XAU/USD increased by 1.66% to close at 1345.616. The USOIL was trivially +0.02%, trading at 47.40.
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