Markets gained widespread anti-risk sentiment last week. The Dow Jones the balance fell by -1.1% as equity investors began to seemingly fear the delta option and its contribution to slowing global growth. With the latest US retail report, which highlighted consumer sentiment, hard economic data seemed to emphasize this narrative and likely weighed risk appetite similarly negatively.
Nasdaq however, price activity fell by only -0.3% during the week as high technology continues to defy gravity and keep market-weighted indices afloat despite expansion. In the meantime, though S&P 500 The index fell -0.6% and Russell 2000 fell short due to its -2.5% slide. Main stock indices there was also selling pressure outside the US, with the exception of ASX 200. The DAX 30, FTSE 100and CAC 40for example, it fell by -1.1%, -1.8% and -3.9%, respectively. Chinese technology stocks fell as the government had more cuts in the sector, causing the Hang Seng index to fall -5.8% and fall into bear market territory.
Main goods also fell last week. Crude oil price activities fell by -9.2% and copper prices fell -5.8% as COVID-19 delta and the accompanying material headwind increased concerns about COPID-19 global GDP growth. This had a negative effect on commodity currencies such as Australian dollar and Canadian dollar, but increased the demand for secure currencies such as US dollar and Japanese yen. Not to mention FOMC minutes were revealed and hinted at the possibility that the Fed could narrow down in the “coming months”.
US DOLLAR WEEK RESULT AGAINST VALUES AND GOLD
FX traders pushed USD / CAD 309-point higher and AUD / USD According to 231-point. NZD / USD pricing became 139 points during the week as RBNZ’s unexpected decision to put interest rates on hold prompted Kiwi’s weakness. The strength of the US dollar was felt against others like it Euro and Pound Sterling as well. In fact, the broader DXY index rose 1% last week, reaching a nine-month high EUR / USD and GBP / USD sharply weakened. Whether or not the US dollar will be able to maintain its bid will likely depend on the upcoming Jackson Hole Symposium in the Federal Reserve and the expected speech by Fed Chairman Powell.
The Fed’s symposium is likely to focus on the language surrounding the timetable for tightening asset purchases and possible delays, as it is time for the economic outlook due to the growing downside risks posed by the recent pandemic. The DailyFX economic calendar describes the additional risk of high-impact events next week, including the release of key PCE inflation data. IHS Markit’s monthly PMIs and the latest minutes of ECB meetings are also cross-cutting. What else can the markets expect next week?
The sharp decline in the euro last Thursday /USD below the critical level of 1.17 has paved the way for a couple of further sharp losses, although consolidation is likely to be achieved first on both sides 1.17.
The cryptocurrency market looks good in the run-up to the weekend, as prices have exited the final consolidation phase and are pushing higher.
Quite a week for the place gold in August after the beak. Markets are waiting for further guidance as the Jackson Hole Symposium approaches. XAU / USD looks at dollar riders.
FinTwit has come to life in the summer months as markets break significant levels. SPX crashes, Aussie tanks and Jackson Hole have eyes.
With declining risk appetite in emerging market currencies, the G10 continues to perform poorly. Jackson Hole and US data ahead.
The Federal Reserve Symposium in Jackson Hole, Wyoming, could affect the near-term outlook for GBP / USD if the central bank provides details of a possible exit strategy.
The Australian dollar is under pressure to develop a stronger US dollar as commodity risks increase, the Delta spreads and the Fed sees.
Investors turn their attention to the Jackson Hole symposium as global stocks suffer setbacks.
GBP / USD price activity fell by almost 250 points last week and closed below the key moving average. Will the British pound weaken further against the US dollar or can the cable get stuck on critical support?
Despite recent increases in costs, gold prices appear to be declining in the near future. The XAU / USD technical posture offers practical trading provisions.
The Nasdaq 100 fell below the 20-day SMA line and has undergone a technical correction. The MACD indicator fell lower, suggesting that the downward momentum may increase.
The Australian dollar fell more than 3% and a major technical break further threatened Aussie’s losses. Significant levels in the AUD / USD weekly technical chart.
The US dollar rose, but prices ended uncertainly last week. The main developments to look at are the USD / CAD gun, the EUR / USD wedge, the AUD / USD hammer and the GBP / USD triangle.
USDCAD has made an incredible effort to get rid of the burdensome congestion controls in so many other markets to reveal one of FX’s most convincing trends. Is it a trend that can continue to work or just a trained rubber band due to a bigger turnaround?