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The major currencies were a mixed bag this week, and it looks like it was a risk-on vibe with the Canadian dollar rising to the top while the yen and euro were net red.

There were no major catalysts to drive the positive leaning bias across the major asset classes, but we did get positive updates in business sentiment and confirmation once again that central banks will maintain simulative measures.

Notable News & Economic Updates:

Risk-on Sentiment this week

Dollar, Gold, S&P 500, 10-yr Treasury Yield, Bitcoin, Oil
Dollar, Gold, S&P 500, 10-yr Treasury Yield, Bitcoin, Oil

As we can see in the hourly chart, traders leaned long in most asset classes this week, with the except of gold coming in just under break even at the Friday close.

There were no major catalysts in terms of surprise news headlines or economic updates to get traders into a bullish mood, but it’s more likely a combination of improving business sentiment data and economic updates as the world continues to recover from covid that had traders leaning risk-on.

We also saw the Federal Reserve and the Bank of Japan signal that easy money policies were here to stay, which likely helped boost the risk-on vibes as well while momentarily taking the Greenback and bond yields lower on Wednesday.

And across the major currencies, it looks like risk sentiment plus counter currency flows were the main drivers for the week. The Loonie took the top spot, likely continuing to benefit from last week’s bullish statement from the Bank of Canada.

The Japanese yen was the big loser, likely a reaction to this week’s dovish Bank of Japan statement on Tuesday, offering a gloomy look on the economy due to the pandemic. And the euro was also a definitive loser on the week as we saw both disappointing economic/sentiment data from Europe, as well as data showing that covid continues to be a strong threat in the region despite falling case numbers.

USD Pairs

Overlay of USD Pairs: 1-Hour Forex Chart
Overlay of USD Pairs: 1-Hour Forex Chart

GBP Pairs

Overlay of GBP Pairs: 1-Hour Forex Chart
Overlay of GBP Pairs: 1-Hour Forex Chart

EUR Pairs

Overlay of EUR Pairs: 1-Hour Forex Chart
Overlay of EUR Pairs: 1-Hour Forex Chart

CHF Pairs

Overlay of CHF Pairs: 1-Hour Forex Chart
Overlay of CHF Pairs: 1-Hour Forex Chart

CAD Pairs

Overlay of CAD Pairs: 1-Hour Forex Chart
Overlay of CAD Pairs: 1-Hour Forex Chart

NZD Pairs

Overlay of NZD Pairs: 1-Hour Forex Chart
Overlay of NZD Pairs: 1-Hour Forex Chart

AUD Pairs

Overlay of AUD Pairs: 1-Hour Forex Chart
Overlay of AUD Pairs: 1-Hour Forex Chart

JPY Pairs

Overlay of Inverted JPY Pairs: 1-Hour Forex Chart
Overlay of Inverted JPY Pairs: 1-Hour Forex Chart