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Are the Summer Doldrums here?!

It sure looks like it as the major currency markets held a ranging pattern up until Friday, where the Dollar snuck in a quick rally to take the top spot among the majors going into the weekend.

Notable News & Economic Updates:

Summer Doldrums Are Here

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

Despite a steady stream of news and economic updates, there were no major price action moves to see as equities, currencies, and gold stayed relatively rangebound this week.

It’s likely that not only are we seeing the seasonal ‘Summer doldrums’ in play with traders likely away from their desks and no major headlines hitting the wires lately, but those who were around to trade may have stayed on the sidelines in anticipation of the latest inflation numbers from the U.S.

The CPI number came in hot on Thursday, coming in at 5.0% y/y, which was mostly expected and likely why we didn’t see a reaction from the markets. Apparently, they weren’t hot enough to change the perception that the Federal Reserve will not make moves or hints to tighten monetary policy at next week’s meeting.

Oil made a choppy move to the upside as OPEC’s expectations of higher demand in 2021 outweighed the rise in fuel inventories and news of the U.S. dropping sanctions on 3 former Iranian officials and two companies.

Crypto market volatility continued to subside but was a mover this week off of headlines that included the recovery of ransom bitcoin from the Colonial pipeline hack and the move by El Salvador to make bitcoin legal tender.

And again, currencies traded sideways for most of the week, with the pop higher in the Greenback on Friday as the only move of note. This rally doesn’t appear to have a direct catalyst, and with expectations of the Fed holding on to its “transitory inflation” stance next week, it was an odd move. Whatever the case may be for USD gains, it was enough to take the U.S. dollar into the top spot among the major currencies at the Friday close.

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