Partner Center Find a Broker

Safe haven currencies were the top dogs this week as forex traders seemed to have leaned risk-off.

Continued coronavirus pandemic uncertainty and negative headlines out of China were the likely main drivers, with inflation and central bank policy speculation not too far behind as possible secondary market drivers.

Notable News & Economic Updates:

Intermarket Weekly Recap

Dollar, Gold, S&P 500, Oil, Bitcoin Overlay 1-Hour
Dollar, Gold, S&P 500, Oil, Bitcoin Overlay 1-Hour

This week’s risk sentiment vibes looks to be one of risk-off, likely influenced by the never-ending pandemic uncertainty, as well as bearish economic updates & news from China (e.g., Chinese retail sales 2.5% y/y vs. 6.9% forecastGoldman Sachs, JPMorgan warn of Evergrande’s debt woes spillover risks).

But in terms of overall price action, the different asset classes seemed to have moved to the beat of their own drums.

While the Dollar outperformed and equities fell in line with broad risk sentiment, oil bucked the usual tendencies as U.S. oil inventories continue to fall. Gold was also an oddball this week, starting its downtrend on Tuesday despite the broad risk-off vibes, possibly reacting to Dollar strength and the rise in bond yields.

Crypto traders moved mostly net negative, an understandable bias given that most news flow from the space was a net negative.

On top of continued regulations fears, they have been plaguing the space recently, we also saw fake Litecoin/Walmart partnership news, Solana going dark for almost an entire day, and insider trading at NFT platform OpenSea to push many crypto assets into the red.

Altcoins bore the brunt of the bearishness, likely pushing traders to the crypto kings BTC and ETH (up +6.30% and +4.66% respectively) on Friday.

In the foreign exchange space, the U.S. dollar and Japanese yen outperformed the rest of the majors, typical results in a risk-off environment.

The U.S. dollar also benefitted greatly from the positive U.S. retail sales data update, launching it higher on Thursday, as well as drawing in safe haven hunters on rising contagion concerns from the potential Evergrande debt default situation in China.

The Swiss franc was the biggest loser of the week, an odd result given that a general risk-off lean usually benefit CHF. There doesn’t seem to be a direct catalyst, but the bearish turn on Wednesday and Thursday seems to correlate with a downgraded economic forecast from the Swiss government. It’s also possible that comments from SNB Vice Chairman Fritz Zurbruegg last week that the franc is still highly valued may have continued its influence this week.

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