Trading review for the previous week (Oct 16 - Oct 20)

In this article, we would like to present the review of financial markets targeting to the main assets during
the period from Oct 16 to Oct 20.

Indexes:

Last week was a mixed affair with most indexes only consolidating.

Heading into Europe, the FTSE dropped by 0.42% over the course of the five sessions, trading at 7519.5.
The DAX trivially declined by 0.18%, closing at 12985.1, while the CAC40 slightly ascended by 0.38%,
finishing at 5372.4.

Switching to the US, the Nasdaq was dancing during the week and ended up at 6628.1, gently climbing
by 0.33%. Meanwhile, the DOW posted a surge of 1.85%, trading at 23325.9 on last week’s close.

In Japan, the Nikkei 225 (NI225) finished up the week at 21464.6, advancing well by 1.43%.

Forex market:

Looking out over the currency market, the Euro was gamboling the whole week despite European Central
Bank (ECB) President Mario Draghi dropping hawkish rhetoric that quantitative-easing asset purchases
would be recalibrated in the forthcoming policy meeting. Meanwhile, the US dollar has taken back its
bullish strength because the Fed’s officials had changed their expectations to three interest rate hikes
next year. In total, the Euro – Greenback slightly declined around 0.31%, closing at 1.17774.

Pound Sterling has weakened versus most major currencies last week because there were more negative
economic announcements than the positive ones. While good news merely matched economist’s
expectations, U.K. Retail Sales data was reported notably falling to a negative number, exposing signs
that the British economy could possibly resume its downtrend. Summarily, the GBP/USD pair descended
to 1.31862, falling by 0.74% over the course of the previous week.

The US Dollar - Japanese Yen has spent a week energetically towering, marking a new 3-month high
thanks in large part due to hawkish stimuli from the U.S. central bank’s officials. In conclusion, the
USD/JPY pair strongly advanced by 1.46%, trading at 113.501 on last week’s close.

Friday last week saw the US Dollar – Canadian Dollar pair shoot up, making its short-term bullish trend
continue mostly because of two Canada’s crucial economic releases coming in negatively. Combined with
the strengthening of the Greenback, USD/CAD rose around 1.13% during the week, ending at 1.26221.

Australia’s Employment data reported strongly falling was the main driver which caused the Australian
Dollar to head lower versus its FX counterparts. In summary, the Aussie was down versus the US Dollar
by 0.89%, finishing up the week at 0.78139.

The New Zealand Dollar posted a strong decline versus its crosses during the previous week despite
New Zealand’s CPI q/q confirmed rising well from the no-growth level. In conclusion, the Kiwi –
Greenback was affirmed descending by 3.06% to close at 0.69555 on last week’s close.

Commodity market:

The precious metal was pushed lower last week largely due to the Greenback’s bullish momentum, while
crude oil prices were gamboling during the week. In total, XAU/USD was down by 1.81% to finish at
1280.368. The USOIL increased around 1.24% over the course of the week, trading at 52.03.
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