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Despite the dip on Friday, the U.S. dollar was able to keep the top spot into the weekend on a string of net positive U.S. economic updates, as well as the delta variant concerns driving traders a bit more into safe havens.

Notable News & Economic Updates:

Intermarket Weekly Recap

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

With the always anticipated U.S. jobs data on Friday and no other major economic catalysts on the schedule, most of the trading week was relatively quiet across the financial markets.

Equities were steadily higher, not affected by the rising concerns of the covid-19 Delta variant put on some other assets, including bond yields and higher-yielding, commodity currencies. Oil was also under pressure earlier in the week, likely on idea that the Delta variant could impact the rising demand from the pandemic recovery, outweighing concerns of a oil supply deficit

Oil was able to recover later in the week after confirmation from U.S. data of lower inventory and higher demand sparked speculation that OPEC+ may increase future output.

The crypto markets were moving as always, albeit with a little less volatility than usual. Bitcoin bounced once again off the major support area forming around the $32K with no major bullish news to speak off.  But like the previous weeks, BTC saw selling pressure quickly (this time around the $36K handle), possibly on a few headlines concerning Binance exchange (e.g., UK financial watchdog bans crypto exchange BinanceBinance crypto exchange faces scrutiny in Thailand, Caymans).

In the forex space, price action was relatively calm with no major catalysts until the Friday’s NFP report. Broad performance seemed to indicate that global risk sentiment was the main driver among the major currencies, typically characterized by an out performance in the “safe havens” over the “riskier” currencies like the comdolls. We can also see it in the Canada dollar when it out performs the Kiwi and Aussie while underperforming the rest of the majors.

Sentiment became uniform on Friday though after the latest U.S. employment update, where we saw the U.S. beat the net change expectations but saw a rise in the unemployment rate. This seems to have sparked a risk-on sentiment move across the major currencies as the Dollar dropped after the news, possibly on the idea that the jobs report wasn’t likely strong enough for the Fed to speed up their tapering/rate hike timeline.

USD Pairs

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

Strong all week, strong economic updates, maybe some risk-off flows off of delta variant fears,

GBP Pairs

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

Net winner all week, optimism over lockdown ending? economic data was mixed

EUR Pairs

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

Mixed but arguably a net out performance, possibly with the help of positive European economic updates. Weak against JPY & USD, possibly on covid concerns.

CHF Pairs

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

very mixed price action, but mostly underperformed other safe havens most of the week, vice versa vs. comdolls

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