Weekly Market Review – August 1 − 5 2016
NFP report will be main event this week
The US Fed and the Bank of Japan conducted their interest rate meetings last week. Both regulators left their respective interest rates unchanged but there was a bit of optimism at the FOMC Meeting as Fed Chair Janet Yellen indicated that the economy is on the right track. However, the timing of the next rate hike is unknown, which ultimately put pressure on the USD. Friday additionally saw the USD fall as US Q2 GDP data came out lower than expected.
This week investors will should pay close attention to interest rate meetings that will be conducted by Reserve Bank of Australia and the Bank of England, scheduled for August 2 and 4 respectively. However, this week’s main event is the NFP report, which will occur on Friday, August 5.
There were a number of important quarterly reports last week that had positive impact on the market. US companies such as Google and Amazon provided key support. Furthermore, a slightly underwhelming FOMC Meeting additionally provided support.
This week’s NFP report will ultimately provide the greatest impact on the US markets.
Major stock indexes across Europe showed a relatively weak upward trend during the week, as investors waited for the Bank of Japan’s decision on its monetary policy.
This week the Bank of England will conduct its interest rate meeting, with analysts expecting a new stimulus package.
Gold concluded the week in a positive light, with the precious metal growing by $40 per ounce as weak US economic statistics hurt the US economy.
Gold prices will be impacted throughout the week thanks to the upcoming NFP report.