Mon. Oct 18th, 2021

With the lack of new catalysts to spark some action, major currencies traded in a narrow range this week. But it seems that in the news cycle it was enough that the comdolls were able to take the lead, while the Swiss franc takes the honors of “biggest loser”.

Highlights and economic updates:

Weekly intermarket recapitulation

Dollar, gold, S&P 500, ten-year treasury yield, oil
Dollar, gold, S&P 500, ten-year treasury yield, oil

It looks like a case of this week’s summer march in the financial markets, characterized by relatively low volatility and disorderly price action on most major asset classes. The global economic calendar was relatively light on major updates and the news cycle had almost no shocking headlines to start any momentum. Fortunately, for traders who do not enjoy the summer and are engaged in all the movements of the market, there were some outstanding movements to look back on.

First, there was a rapid drop in gold and silver just earlier in the week, mainly attributed to Asia’s reaction to the U.S. job update better than expected last Friday. This update probably sparked speculation about the reduction of the US dollar / stronger, usually a bearish environment for precious metals. When pressure comes in a low-liquidity environment, such as the start of each week, markets can move quickly without traders on the other side absorbing the rush of orders.

Cryptographic assets were a big driver this week, also over time, a surprising feat despite the U.S. Infrastructure Bill threatening the cryptographic ecosystem with basically impossible-to-comply regulations. We also saw the biggest hacking in the history of cryptocurrencies, as the Poly network ran out of $ 600 million earlier in the week, but it didn’t seem to deter the race. Traders may be primarily focused on increasing the value of the Ethereum network, as the ETH is burning at a rapid pace since the London update last week, as well as an imminent launch of smart contracts in the Cardano blockchain.

As for equity markets, equities gained value as earnings reports show strength and a recovering economy, enough to continue to attract massive amounts of capital to global equity funds. The latest U.S. inflation data was also the likely driver for higher equity prices (and positive risk sentiment) on Wednesday after a weaker-than-expected reading of the core CPI that would likely result a reduction in Taper bets.

And as for the oil market, oil prices were able to recover after a fall on Monday, probably in line with expectations that demand will continue to improve, and despite US President Biden’s call for OPEC to rise oil production.

In the currency area, volatility was relatively low and turbulent among most major currency pairs, but we saw the Swiss franc make a directional move earlier in the week. There do not appear to be any direct catalysts for its weakness earlier in the week, but it is speculated that its recent concentration may boost SNB action to intervene and limit the appreciation of the franc price.

As for the winners, it looks like a rise between the Canadian dollar and the New Zealand dollar, the former is likely to benefit from the rise in oil prices on Tuesday and the latter is likely to find buyers ahead of a likely RBNZ rate hike next week. it comes .

Pairs in USD

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

GBP pairs

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

EUR pairs

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

Pairs CHF

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

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