The week is starting with the dollar recovering slightly from Friday’s NFP slump. Although the mixed employment report pressured the greenback, it dominated its peers last week. What is coming ahead in the new week?
Last Week Market Highlights
- The US labor department announced a mixed employment report on Friday. While 850,000 new jobs were created in June, the unemployment rate jumped to 5.9%.
- US Oil stockpile dropped to its record low.
- OPEC+ failed to reach an agreement on supply among its members. The meeting to continue on Monday.
- Bank of England’s outgoing chief economist warned that UK inflation could surge to 4% this year, above the central bank’s target.
- Covid 19 new variant – Delta, rocked Asia and Australia with fresh lockdowns announced. The new strain extended to Europe as the UK delayed the re-opening of its economy.
The US markets closed last week green. S&P 500 surged over 1.3%, Dow up by over 1%, while NASDAQ improved over 2% – all reaching fresh record highs.
However, European stocks fell sharply while their counterparts in Asia also saw a red week.
The dollar dominated the majority of its peers last week despite a disappointing Friday. Meanwhile, the Canadian dollar and Japanese Yen completed the top 3 on the volatility table.
European currencies, Euro & Sterling and the high-beta Australian dollar and New Zealand all fell short as the delta covid strain became a major concern for policymakers.
Safe-haven Japanese yen and Swiss Franc closed slightly bullish after losing the majority of the week’s gains in the last days.
Gold completed its best week since 10th July as it bounced off 1750. Oil had another massive week to complete its 6th consecutive profitable week
Cryptos continue to struggle. Bitcoin touched $32,700 last week as mining activities continue to struggle amid proposals for central banks’ digital currencies. Ripple struggles below $0.7 but Ethereum hit $2,400. Meanwhile, Doge stays quiet around $0.24 despite Elon Musk’s recent bullish comments.
Top FX gainers
Top FX losers
Major events this week
- OPEC+ Meeting continues on Monday.
- Reserve Bank of Australia’s (RBA) rate statement and monetary policy update.
- FOMC Meeting Minutes
- Canadian June employment report.
- Speeches of the RBA and Bank of England (BoE) governors.
- G20 Meetings
- Headlines on Covid 19 delta variant.
Forecast for the week
We will most likely see the dollar shed further in the first half of the week thus, pushing EURUSD, GBPUSD, AUDUSD, NZDUSD higher and USDCAD, USDJPY and USDCHF lower.
Bitcoin could fall below $32,000 as the current pressure continues
Oil prices could shoot higher if the OPEC+ cartel agrees on Monday. WTI might touch $77 per barrel or even higher.
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