US Dollar continues to rise along with China woes
Last week we saw the continuation of dollar and yields rising bringing a general risk off sentiment to equities and commodities. The USDollar rallied but found resistance above the 103.50 level as the FOMC minutes gave the indication that there was a level of hawkishness among the members. the DXY closed 0.6% stronger at 103.43.
Euro had a overall mixed week with the weeks economic releases coming inline. The single currency lost 0.6% as the USDollar rallied but was relatively flat vs other currencies.
GBP had a better week gaining slightly vs the Dollar. UK wage growth continues to rise and the market consensus is that further rate rises could be on the horizon if inflation remains stubbonly high. With this bring the interest rate disparity that could fuel a further GBP rally and we expect the pound to continue to perform.
Commodity currencies continued their poor run of form as the risk off mood remains in play. All risk currencies gave up fiurther ground with CAD losing almost 1% and AUD and NZD both losing 1%+
Oil having risen for 7 weeks of the trot finally had a negative week. The risk off sentiment moved oil lower by 2% to close at $81.40.
The week ahead will be dominating with the markets wathcing the Yields as they sit on resistance levels. Coupled with this USDollar wil lbe watched to see fi it breaks higher again and could continue the risk off theme.
Data wise it is a quieter week with PMI's and housing data from the US.
Weekly Majors Market Performance
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