Weekly Market Review – July 1 − 8 2016
The NFP report will be this week’s most important event
At the end of the week the major currencies varied against the US dollar. The growth came via the NZD (+ 0.72%), CAD (+ 0.62%), EUR (+ 0.48%) and the AUD (+ 0.36%). The drop came via the CHF (-0.22%), JPY (-0.26%) and the GBP (-3.03%), with the Brexit still providing a tremendous impact. Additionally, it seems as if the Fed will not change its monetary policy until the beginning of 2017. This week all investors should pay plenty of attention to Friday’s NFP report, scheduled for 12:30 GMT. Additionally, Tuesday’s Australian interest rate decision, scheduled for 4:30 GMT should impact the pair.
Last week, most major US stock indexes fell initially, thanks to the Brexit. Nevertheless, central bank heads assured that they will do everything in order to prevent a recession. However, as the week progressed increasing oil prices provided support for the stock markets. Almost all last week’s US economic statistics were positive, which is a good sign for this upcoming week, especially with the NFP report waiting in the wings. Dow + 3,15%, S & P + 3,22%, NASDAQ + 3,28%.
Major stock exchanges in Europe tried to recover their losses, caused by the UK referendum. However, most investors stayed away, fearing the negative consequences of the decision. However, with BOE head, Mark Carney stating that the bank is ready to consider slashing the rates at their next meeting, securities such as the DAX may jump slightly. On the other hand it may not make such a difference at the present time.
Precious metal prices opened the week with a fall thanks to profit taking after a period of significant growth. Nevertheless, on Wednesday gold prices jumped up again as many are speculating the Fed will not raise the rates before 2017. This week the main event is the NFP report, with the publication scheduled for Friday.