Trading Review For The Previous Week (Aug 21 – Aug 25)

Last week seemed a flat week for global financial markets until Friday’s last trading session, with most indexes making no impressive move. In Europe, the FTSE was the only superstar while making a remarkable gain of 1.3% during the week, closing at 7411.6. The CAC rose gently by 0.26%, trading at 5104.3. The DAX finished up at 12179.2, slightly up by 0.04% compared to its previous close.

In the US, the Nasdaq closed at 5822.3, climbing by 0.52% over the course of the week. The Dow also finished up rising by 0.67%, trading at 21818.1.
In Japan, the Nikkei 225 ended the week at 19451.3, dropping by 0.06%.

Currency markets

Heading into the weekend, Fed Chair Yellen’s dovish speeches drove tremendously negative impacts to the US dollar, making most cross-USD currency pairs soar on last Friday’s New York trading session. Although the Euro received some good news due to positive economic releases on last Wednesday, this currency pair still had been consolidating almost the whole week until it finally found drastic fuel to strongly strengthen versus the Greenback. Summarily, EUR/USD rose by 1.36%, closing at 1.19195.

Pound Sterling continued to dip lower last week because of continually disappointing economic figures, however it finally made a bullish move on Friday thanks to Yellen. GBP/USD finished up the week slightly rising by 0.04%, trading at 1.28771.

The US Dollar - Japanese Yen had a difficult week trading mixed. Japan’s headline inflation confirmed to remain well below Bank of Japan’s target of 2% indicated that the economic growth is still sluggish, leading to a possibly more-dovish-than-expected monetary policy of BoJ in the near future. Last week, the bullish momentum seemed to match the bearish one, causing USD/JPY to trivially climb by 0.13% to end up at 109.323 on last week’s close.

USD/CAD kept falling down since there were positive outcomes for Canada’s economy last week. CAD’s strength has been built in recent weeks due to traders’ expectations for the interest rates to be raised in near-term by Bank of Canada (BoC). Combined with Yellen’s dovish tone, the Greenback - loonie lost about 0.85% over the course of the week, trading at 1.24788.

The Australian Dollar disconcerted global traders as Australia’s financial information was “at sixes and sevens”. Reserve Bank of Australia’s boss intended to leave interest rates unchanged, while recent economic releases were quite positive. Generally, AUD/USD inconsiderably moved, only +0.01% to finish up the week at 0.79289. However, the Kiwi (the twin brother of AUD) found itself falling well against the US dollar by 0.96% during the week, trading at 0.72380

Commodities market

Gold prices (XAU/USD) tumbled last week waiting for Jackson Hole Economic Policy Symposium’s outcomes, and finally finished up rising by 0.56% to trade at 1290.708. Crude oil prices traded mixed and, conversely, ended up at 47.83, dropping by 1.54%.
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