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The Japanese yen was the biggest loser while the Kiwi took the top spot among the major currencies as positive risk sentiment seemed to be the main market driver this week.

Notable News & Economic Updates:

Risk-on Sentiment

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

On the intermarket chart above, we can see a general positive lean in the markets this week, characterized by rising equities, bond yields, and commodities against a weaker U.S. dollar and falling bond prices. The only outlier market was the crypto market, once again in turmoil early in the week on news that the Chinese government ordered a shutdown of bitcoin miners and for financial institutions to refuse service for crypto related activities.

It’s likely the reason for the bullish lean in the markets was a combination of a few stories. First, Fed Chair Powell and other central bankers reassured traders that the spike in inflation is transitory and that monetary policy tightening is not likely to come sooner.

Second, traders may have possibly positioned long equities and commodities in anticipation of a massive infrastructure deal, which seems to be moving forward for now.

And third, we just saw another round of business sentiment data from around the globe (e.g., U.S. factory activity index rises to record high in JuneEurozone economy grows at fastest rate for 15 years, etc.) indicating a continued strong recovery ahead from the global pandemic.

This meant the usual risk-on picture for the major currenciesas the Comdolls took the top spots this week, while “safe havens” were the big laggards. The Japanese yen was the biggest loser, likely with the help of slowing PMI data, while the Kiwi dollar took the top spot with the help of positive trade and consumer data.

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