The U.S. Dollar Index, which measures the strength of USD against a basket of major currencies, rallied to 90.7 in the early US session and then quickly dropped back below 90.4 in a few hours, triggered the bullish trend of other currencies.
The party on Wall Street continues and the major US indices rounded out the week with a bang; the S&P 500 rose 0.5% on Friday to close in the 3935.51, up 1.2% on the week and nearly 6% on the month. The Dow rose 0.1% to close at 31448.44, up 1.0% on the week and nearly 5% on the month. The Nasdaq Composite rose 0.5% to close just under 14100 for a gain of 1.7% on the week. The index is up 7.8% on the month. All three indices notched record closing levels ahead of the long US weekend (its President’s Day on Monday).
US Treasury Secretary Janet Yellen said on Friday that she urged G7 members to 'go big' on fiscal support to promote a robust and lasting economic recovery, as reported by Reuters.
This week, we are going to have a series of economic data that may affect the market significantly. Like today’s Japan GDP; the RBA Meeting Minutes on Tuesday; UK CPI, ECB Monetary Policy Statement, Canada Core CPI in the middle of the week; and a lot more on Thursday and Friday.
It was a choppy day, but EURUSD ultimately finished above the 1.2100 level. USD saw weakness during US trading hours as risk appetite improved.
GBPUSD has surged back above the 1.3850 mark in recent trade, a strong recovery from earlier European session lows under 1.3780, and the pair tested weekly highs at 1.3866.
On Friday, it reversed sharply during the American session rising back above 0.7750. The AUDUSD rose sharply during Friday’s American session, climbing from 0.7720 to 7765, the new daily high.
The USDJPY pair gained strong positive traction on the last trading day of the week and climbed to levels beyond the key 105.00 psychological mark, or three-day tops. And then dropped back a bit to 104.9.
The loonie recovered sharply versus the US dollar during the American session and ahead of a long weekend. The USD/CAD peaked at 1.2763 and then turned to the downside falling more than 60 pips. It dropped to 1.2702 and it is hovering around 1.2705/10, still up for the day but now pointing to the downside.
Gold has recently been rejected at $1850, paving the way for the ongoing declines. Before that, the precious metal had rebounded at $1810. However, after losing critical bounce back, declines are likely to carry on in the week starting Monday.
WTI has surged above the $59.00 level in recent trade amid USD weakness and a positive fundamental backdrop. Crude oil markets have thus now more than made up for losses incurred on Thursday amid pessimistic OPEC and IEA reports.
Bitcoin (BTCUSD) has hit a new all-time high of $49,344 early on Sunday amid reports of further institutional interest. Bloomberg has reported that Counterpoint Global, an investment arm of Morgan Stanley, is considering investing in the cryptocurrency.
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