US Dollar rebounds with Stocks also higher

Intermediate

USD
The US Dollar finally halted its decline last week, which was unexpected after disappointing US economic data. The Dollar Index (DXY) rose 0.7% to close the week up at 97.83.

EUR
The Euro turned over and remained under a lot of pressure before the ECB press conference. However, there was no real news in Mario Draghi’s last meeting as the ECB chairman and we now welcome Christene Laragarde as chairwoman. She will have a tough time on her hands following weak eurozone economic data. In light of this, EUR/USD finished the week trading below the all-important 1.11 mark.

GBP
The Pound was incredibly volatile again last week, however, the likelihood of a No-Deal Brexit is still considerably reduced, but the risk still remains as a No-Deal is still not completely off the table. Overall, the Pound gave back some of its recent gains and finished the week -1.2%, however traders are looking more towards the upside.

JPY
Another fairly quiet week on the Yen front, we saw a slight retreat but no real impulsive moves.

AUD & NZD
A fairly negative week for both pairs, which both fell around 0.7% on the week versus  the USD, mostly driven by a stronger US Dollar.

EQUITIES
Stocks showed more strength and it is still clear to us that the risk is for more upside gains. Fairly positive US-China trade talks and signs of progress from the EU/UK boosted equities higher. The S&P 500 finished the week hitting new all-time highs rising over 1.1% to 3021, the DAX gained 1.8% to close at 12886, and the FTSE100 finished 2.2% higher at around 7324.

The Week Ahead
The week ahead will have traders’ eyes focused on the all-important EU/UK and US/China deals once again. With the October 31st Brexit deadline quickly approaching and the most likely outcome being a further extension, yet again we will likely see a very volatile week ahead for both GBP and EUR.

On the macroeconomic front we have CPI releases from the Eurozone, Germany, Australia, Japan, and Switzerland. As well as this we have the important interest rate decisions from the US and Canada, ending the week with the US Nonfarm Payroll release Friday. Until next week, Happy Trading!

Editor

Bryce has over 3 years of experience managing his own personal investment portfolio. In 2018 he completed a BA (Hons) degree from the University of Sussex in Event Management. He then went on to ta...continued

Comments on this analysis

Your email address will not be published. Required fields are marked *


Latest Related News

Euro surges after ECB PEPP expansion (EURUSD Forecast)

The “risk on” theme that has extended into early June has kept the safe haven US Dollar in a weakened position, sending EURUSD higher since latter May.The acceleration higher over the past 24 hours was driven by the European Central Bank (ECB) confirming larger than expected increase of EUR600bln for its Pandemic Emergency Purchasing Programme (PEPP).Here we look at the EURUSD forecast into today and… Continued

Pound upside risks with a weaker US Dollar (GBPUSD Forecast)

The “risk on” phase has extended through late May into this week, with global stock averages surging to new cycle highs.In the Forex world, the US Dollar continues to weaken (alongside the Japanese Yen), seen very much as a safe haven currency in the COVID-19 world.The positive global view continues to be driven by hopes the easing of lockdowns and the reopening of the global… Continued

Equity bull theme resumes (despite US-China tensions)

Macroeconomic/ geopolitical developments The positive “risk on” theme was again reinforced by additional positive steps regarding the launch of an €750bn EU recovery fund. The “risk on” theme was evident despite tensions between the US and China increasing in late May, intensified by developments surrounding Hong Kong.However, President Trump did not indicate economic sections and was seen as less dramatic than feared at Friday’s press… Continued

US Dollar weakens across the Forex board

US Dollar Index breaks key support (DXY forecast)Euro-Dollar breaks up (EURUSD forecast)Aussie-Dollar major resistance weakens (AUDUSD forecast) Continued

Euro upside risks – EURUSD Forecast

The “risk on” theme continues with global stock averages again pushing to new cycle highs, and the US Dollar stays relatively weakened as a safe haven currency.Here we review the positive outlook for the EURUSD forecast. EURUSD day trade outlook: Upside risks through key 1.1039, maybe for critical 1.1147 A Wednesday rally to overcome notable 1.1009/19 rebound peaks, to build on Monday's small dip and… Continued

Forex Brokers in your location