Market Overview (May 06 - May 12)

In this article, we would like to present the review of financial markets targeting the major financial instruments during the period from May 06 to May 12.

Indices:

Last week observed a very positive trading affair for most indices.

In the Old Continent, the Footsie (UKX) increased sharply at 2.14% from the beginning of the week, landed at 7724.6. The CAC40, in a similar strong bullish trend, also headed up by 0.48% to 5541.9. In Germany, the DAX ascended by 0.81%, closing at 13001.24.
In the United States, the NASDAQ (IXIC) made a considerable jump to 7402.88 at the end of the week, increasing by 2.39%. The neighboring DOW (DJI) had an impressive recovery by 1.78% to 24831.17.

In Japan, the Nikkei 225 had the 6th week of continuous rising at 22758.5, an increase of 1.24%.

Foreign exchange market:

In the forex market, the US Dollar had a pessimistic affair caused by the top leaders and the released indices. Fed Chairman Jerome H.Powell provided his positive review on the application of Fed’s policies, while the U.S President Donald Trump declared his final decision to pull the U.S out of the Iran deal. However, the exchange rate of the USD against other major currencies was relatively stable. Meanwhile in Europe, given the positive ECB President’s speech about the economy’s recovery, EUR/USD had two continuous reversal candles in the last trading days, promoting a slight descent of 0.18% with the exchange rate finalizing at 1.19383.

The Cable continued the bearish trend with a slight fall to 1.35383, losing an amount of nearly 0.13% from Monday’s rate. The bank rate remained at 0.5%, while a hold-rate decision was made with the interest rate. The monthly Manufacturing Production had a slight increase from -0.2% to -0.1%. This positive news was the main force to keep GPB/USD relatively stable this week.

The Japanese Yen had a gentle bearish week given no significant changes on the market. The Bank Lending rate and Average Cash Earnings both rose to 2.1%, printing a positive look on the financial market. USD/JPY gained by 0.22% of value from the week’s opening, closing at 109.358.
In the Maple Country, Canada's April jobs report with less new jobs created as wage increased. It lost 1,100 jobs as Statistics Canada showed on

Friday, while it was predicted that 17.800 new jobs would arrive. USD/CAD ended up the week at 1.27915, presenting an overall fall of 0.46%.
On the East side of Asia, the Australian Bureau of Statistics announced the Retail Sales of April at 0.0%, a serious fall from the forecast of 0.2%, while the Annual Budget was released with the focus on the improper spending. However, the negative news cannot stop AUD/USD from three continuous days recovering to 0.75418 later this week.

At the same time in New Zealand, the official cash rate was kept stable at 1.75% and the new Reserve Bank governor Adrian Orr spoke about his positive overview of the market. The NZD/USD responded with a sharp fall of 0.78% from Monday to 0.69624.

Adrian Orr
Source: Radio NZ


Other assets:

The yellow metal stopped the bearish trend with an increase from Monday’s price, finishing at 1318.85, recording a rise of nearly 0.33% from the opening of the week.

Oil price had a continued week of growing with a great demand from the market. The WTI benchmark has landed at $70.44 per barrel, posting an increase of nearly 1.08% from last week’s close.

In the cryptocurrency market, the Bitcoin ended the bullish trend in the last five weeks. At the time of writing, BTC/USD is trading around $8,380.7.
See also:
Weekly market overview November 12 - 16
Weekly market overview November 12 - 16
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