Trading review for the previous week (Oct 23 - Oct 27)

In this article, we would like to present the review of financial markets targeting to the main assets during the period from Oct 23 to Oct 27.

Indexes:

Last week posted a mixed trading week with most indices buoyantly fluctuating.

In Europe, the FTSE fell from earlier last week but took back its strength during the week and finished at 7510.3, slightly losing by 0.12%. Conversely, both the DAX and the CAC40 strongly climbed. The DAX rose by 1.82% to end at 13226.5, while the CAC40 ascended by 2.28%, trading at 5494.1.

Switching to the US, the Nasdaq finished up the week at 6699.7, advancing around 0.94%. The DOW made a gain of 0.46%, closing at 23432.2.

In Japan, the Nikkei 225 strongly grew by 2.51% over the course of the five sessions, locked at 22010.0.

Forex market:

Heading into the currency market, last week marked the dovish return of the European Central Bank on monetary policy because ECB President Mario Draghi, in his Thursday conference, announced that the Quantitative-Easing buying program “can be extended if necessary” in 2018, causing the Euro to weaken against its G10 FX currencies. Meanwhile, the US Dollar received actuation from the U.S. Advance GDP report which was positively confirmed instead of falling as analysts had predicted. These factors made the Euro – Greenback currency pair head lower by 1.43%, trading at 1.16051 on last week’s close.

The British Pound - Greenback has been gamboling during the previous week largely because of the opposite economic announcements from the UK and the US. Last Wednesday, U.K. Prelim GDP posted a rise, driving the Sterling higher. However, U.S. economic news also brought fuels for the US Dollar, making the GBP/USD currency pair decline by 0.44% to end at 1.31258.

The US Dollar- Japanese Yen continued its uptrend last week thanks in large part due to the Greenback’s strengthening. Nevertheless, JPY received stimuli from Japan’s rising stock market, therefore, USD/JPY merely advanced by 0.13% over the course of the week, finishing at 113.643.

A rising US Dollar in addition to the dovish rhetoric from Bank of Canada President Stephen Poloz, who seemed to remain in no rush to raise interest rates, have driven the Greenback – Loonie to move higher during last week. In total, USD/CAD mounted around 1.48% to end up the week’s sessions at 1.28076.

The Australian Dollar found itself plunging versus major FX counterparts last week since two Australia’s economic reports came in negatively. Coupled with the Greenback’s stabilization, the Aussie– Greenback finished Friday’s session at 0.76723, sharply falling by 1.79%.

Along with the twin brother Aussie, the New Zealand Dollar posted a strong drop over the course of the week. In total, the Kiwi – Greenback pair continued to lose another 1.17%, trading at 0.68730.

Commodity market:

The precious metal’s bearish trend remained on the way still mostly due to the U.S. economy painting a positive picture. XAU/USD dropped by 0.55% during last week, closing at 1272.81.

Crude oil had another positive week. In total, the USOIL posted a surge of around 3.97% to finalize at 52.03 on last week’s close.
See also:
Weekly trading forecast Aug 13 - 17
Weekly trading forecast Aug 13 - 17
13.08.2018
Market reviews
Weekly trading forecast Aug 06 - 10
Weekly trading forecast Aug 06 - 10
06.08.2018
Market reviews