Wed. Dec 8th, 2021

It was a relatively quiet and mixed week for the financial markets, as traders awaited the Jackson Hole economic symposium. Traders leaned toward the risk leading to the event, and then began to exploit the risk after Powell’s speech on Friday. This reaction consolidated the Comdolls as the best winners and the safe havens as the biggest losers of the weekend.

Highlights and economic updates:

Intermarket weekly recapitulation

Dollar, gold, S&P 500, 10-year treasury yield, oil, Bitcoin too 1 hour
Dollar, gold, S&P 500, 10-year treasury yield, oil, Bitcoin too 1 hour

The Jackson Hole Economic Symposium was the big risk event scheduled for the week, although it has not normally been a major catalyst for volatility in recent years. However, being a gathering of the main protagonists of the world’s monetary and financial policy, it is an event that most traders know about and probably remained relatively inactive in the event of a major surprise.

Since Jackson Hole didn’t start until Thursday, market price action between the different asset classes was mixed, but it appeared to have started with a uniform trend to “risk” on Monday, possibly a reaction to related net holders. with covid-19 (e.g., China does not report new local cases of Covid-19 for the first time since July, the FDA grants full approval to Pfizer-BioNTech’s Covid trait). This positive sentiment persisted for the rest of the week, although the latest business sentiment data undoubtedly shows declining optimism around the world.

The sense of risk was released on Friday after Fed Chairman Jerome Powell delivered his speech at the Jackson Hole event, effectively reiterating that the Fed was far from raising interest rates and that there was still no rush to reduce bonds. purchasing operations. Yields on the US dollar and bonds fell sharply on this sentiment, raising other asset classes, including currencies and gold.

Oil had a high performance, probably in the latest positive updates to the covid-19, and probably in relation to tensions in the Middle East (the United States on alert for more attacks in Kabul, according to the coming days will be more dangerous ) and the potential for disruptions to oil operations in the Gulf of Mexico from Hurricane Ida.

Cryptographic assets diverged from the influence of risk sentiment and an intense flow of undoubtedly bullish holders of the cryptocurrency space (e.g. PayPal launches its cryptocurrency service in the UK, Citi considers futures trading to be bitcoins for some institutional clients, Europe’s first Bitcoin futures listed on Eurex in September, etc.) going down earlier in the week. This broad setback could have been a technical setback after the massive recovery from the July lows, but it looks like Jackson Hole’s reaction is helping the cryptocurrency recover some of its previous losses during the week.

In the currency space, there were no major catalysts for the currencies outside the Jackson Hole meeting, which is why we probably saw the Comdolls win the wave of positive risk sentiment to win the week. The kiwi took first place, probably with the help of New Zealand’s positive economic position, while traders fled the savings, and the Japanese yen garnered the biggest hits of the week.

Pairs in USD

Overlapping pairs in US dollars: 1-hour currency chart
Overlapping pairs in US dollars: 1-hour currency chart

GBP pairs

GBP pair overlay: 1 hour currency chart
GBP pair overlay: 1 hour currency chart

EUR pairs

EUR Pair Overlay: 1-hour currency chart
EUR Pair Overlay: 1-hour currency chart

Pairs of CHF

CHF pair overlay: One-hour currency chart
CHF pair overlay: One-hour currency chart

CAD pairs

CAD pair overlay: 1-hour currency chart
CAD pair overlay: 1-hour currency chart

NZD pairs

NZD pair overlay: 1 hour currency chart
NZD pair overlay: 1 hour currency chart

AUD pairs

AUD pair overlay: 1-hour currency chart
AUD pair overlay: 1-hour currency chart

JPY pairs

Inverted JPY pair overlay: One-hour currency chart
Inverted JPY pair overlay: 1-hour currency chart

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