Trading review for the previous week (Sept 25 - Sept 29)

In this article, we present the review of financial markets targeting to the main assets during the period from Sept 25 to Sept 29.

Indexes:


Last week was a positive affair with almost all indexes rising.

In Europe, the FTSE made a gain of 0.82%, trading at 7369.4 on last week’s close. The CAC40 rose around 0.9% to end up at 5329.8, while the DAX fairly grew by 1.65%, closing at 12807.8.

In the US, the Nasdaq finished up the week at 6494.4, advancing by 1.1%. Nevertheless, the DOW was trivially up by 0.27%, locked at 22401.1.

Switching to Japan, the Nikkei 225 moved in range the whole week and ended up gently increasing by 0.22%, trading at 20347.0.

Forex market:


Looking out over currency markets, despite European Central Bank (ECB) President Mario Draghi dropping hawkish hints, the Euro still found itself falling versus its G10 FX counterparts. Meanwhile, thanks to Federal Reserve Chair Janet Yellen’s hawkish rhetoric that “a rate hike in December 2017 is needed”, the Greenback was well boosted. In summary, the EUR/USD currency pair was down around 1.09% over the course of the prior week to finish up at 1.18115.

Thursday last week saw Bank of England (BOE) President Mark Carney conflict fiercely about monetary policy with British Prime Minister Theresa May, leading to a frisking British Pound. In conclusion, GBP’s retracement extended, marking a loss of 0.72% of the Sterling against its crosses during the week to go back to the 1.33931 level.

The Japanese Yen continued to rise energetically thanks to swelling geopolitical risk caused by North Korea’s nuclear testing in addition to the new stimulus delivered by Bank of Japan (BOJ) Governor Haruhiko Kuroda’s hawkish speech on last Thursday that he expected inflation to accelerate towards BOJ target. Generally, the USD/JPY pair slightly increased by 0.45%, closing at 112.469.

USD/CAD’s rally remained on the way during last week largely because of the strengthening Greenback along with Bank of Canada President Stephen Poloz’s dovish tone that “there is no predetermined path for interest rates from here” on Sept 27. The US Dollar pushed higher by 1.11% versus the Canadian Dollar, trading at 1.24678.

The Australian Dollar headed lower last week due to hawkish boosts from Fed Chair’s Yellen. Summarily, the Aussie – Greenback finished up the week at 0.78315, well declining by 1.58%.

Together with the Aussie, The New Zealand Dollar weakened versus a basket of major currencies over the course of the week as Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler decided to keep the policy interest rate on hold. NZD/USD was down around 1.78%, ending up at 0.72065.

Commodity market:


Gold prices continued to trade lower last week, marking the fourth dropping week in a row, while crude oil’s bullish trend remained ascending. In summary, XAU/USD descended around 1.35% to close at 1279.72. The USOIL strongly advanced by 1.93%, finishing up at 51.61 in the final trading session of the previous week.
See also:
Weekly trading forecast December 10 - 14.
Weekly trading forecast December 10 - 14.
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Weekly trading forecast December 3 - 7
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