In this article, we would like to present the review of financial markets targeting the major financial instruments during the period from Jul 08 to Jul 14.
Last week observed a positive trading affair for indices.
Heading into Europe, the FTSE (UKX) increased by about 0.67% throughout the week, locked at 7661.9. The CAC40 also mounted by 0.61% to 5429.2. In Germany, the DAX posted nearly no change from the opening of this week when closing at 12540.73.
In the United States, the NASDAQ (IXIC) made a considerable jump to 7825.98 at the end of the week, increasing by 2.61%. The DOW (DJI) also descended by 2.68% to 25019.41.
In Japan, the Nikkei 225 rose significantly about 4.5%, finalizing at 22597.4.
Foreign exchange market:
In the middle of the largest-ever trade war with new tariffs applied nearly everyday, the Greenback had a considerably bullish week largely thanks to the relatively stable CPI rate and more importantly, the FED Chairman’s first interview about the mechanism at FED. Being comfortable with the questions from Kai Ryssdal, Mr. Powell shared people a close look at FED’s works, and how FED is totally independent of the government’s viewpoint: “We have a long tradition here of conducting policy in a particular way, and that way is independent of all political concerns.” During the same period, the EUR/USD exchange rate fell significantly to 1.16842, losing 0.51%, with no new serious information affected the EUR while the USD got a whole week of increasing.
Last week was another pessimistic week for the British Pound. The Cable – Greenback exchange continued to head lower to 1.32334 with a decreasing amount of nearly 0.66% over the course of the five sessions, especially the three significant falls on Monday, Wednesday, and Friday. The first-time-released monthly GDP landed at 0.3%, while the June’s Manufacturing Production was also published far lower than forecast (0.4% compared with 1%).
The Japanese Yen – Greenback exchange rate had a week shooting up due to the continued rise of the USD against other major currencies. On Monday, the Bank of Japan (BOJ) Governor Kuroda, in a speech at the BOJ quarterly branch manager's meeting in Tokyo, confirmed that the central bank’s movements stay unchanged until inflation hits the target at 2%. The Greenback - Yen exchange gained about 1.85% of value from last week’s, closing at 112.330.
Moving back to the North of America, Canada had had significant releases: BOC Monetary Policy Report, Rate Statement, and the Overnight Rate. The Overnight Rate was exactly the same to forecast at 1.5%. After the announcement on the Overnight Rate, the Greenback - Loonie exchange rate rose to 1.31528, which was about 0.5% higher than last week’s close.
Regarding the Australia and New Zealand’s financial market, there were no significant changes but the recent NAB Business Confidence and the release of Business NZ Manufacturing Index. The AUD/USD exchange rate this week fell to 0.74224, losing 0.14% of value from last week’s; while the NZD/USD had the same tendency with a fall to 0.67653, posting a decrease of 1.01% from last Friday’s.
The yellow metal continued the bearish trend with a decrease from Monday’s price, finishing at 1241.27, recording a fall of nearly 1.06% from the opening of the week.
Oil price had a week of busy trading with much expectation from the market. The WTI benchmark has landed at $70.49 per barrel, a decrease of nearly 1.53% from last week’s.
In the cryptocurrency market, the well-known Bitcoin got a bullish week and is totally worth considering by traders. At the time of writing, BTC/USD is trading around $6,215.3.