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The major currencies were mixed, but it looks like the Kiwi was the top currency this week, likely on positive leaning risk sentiment and continued speculation of a rate hike coming after a positive New Zealand jobs report.

Notable News & Economic Updates:

Intermarket Weekly Recap

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

It was a mixed bag of emotions this week as traders tried to position on a slew of top tier themes and stories. It was a heavy week of central bank highlights, including the RBA’s insistence to continue with tapering, expectations of rate hike in New Zealand, and lots of commentary from Federal Reserve members on when we may see tapering in the U.S.

It all started with risk-off vibes on Delta variant concerns and disappointing PMI data, but by Wednesday, it looks like the market went with positive vibes after a very positive ISM Services PMI number showed that the economic recovery is still on track. This was likely the reason why we started to see equities rebound, along with U.S.  Treasury yields as the 10-year yield bottomed out around 1.14% before starting its climb higher.

Not too long after that, Fed Member Clarida signaled that a taper may come as soon as the end of 2021, sparking a bullish reaction in the Greenback that lasted into the weekend, with the help of better-than-expected U.S. employment numbers on Friday to support tapering speculation.

Gold and oil were net losers as the U.S. dollar gained strength, while bitcoin and the rest of the crypto space was all over the place thanks to potential issues with proposed crypto regulations in the U.S. infrastructure bill and continued crypto adoption headlines (e.g., Uruguayan senator introduces bill to enable use of crypto for paymentsJPMorgan has launched an in-house bitcoin fund for private bank clientsGoogle’s New Cryptocurrency Ad Policy Goes Into Effect)

In the currency space, the bulls favor the Kiwi this week as speculation of a rate hike coming from the Reserve Bank of New Zealand intensified after a very solid beat in the New Zealand employment report. While the euro and Swiss franc were the biggest losers, possibly on signals from business surveys that Europe’s recovery may be slowing relative to the rest of the major economies who continue to show accelerating strength.

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

JPY Pairs

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