Weekly Market Analysis – 20.5 Till 26.5
The dollar soared against a basket of currencies on Friday, reaching a nearly three-year peak as debate over whether the Federal Reserve would wind down its asset buying program later this year gathered pace.
The dollar's strength was largely attributed to the euro, which fell to a six week low on expectations the European Central Bank could introduce negative deposit rates, the rate at which banks park surplus funds with it.
The dollar index .DXY, which measures its value against a basket of six major currencies, rose to 84.214; it’s highest in nearly three years. It last traded at 84.184, up 0.7 percent on the day.
Meanwhile, data in the euro zone shows they remain in a recession and raised expectations the ECB will take further action is weighing on the euro.
The euro fell as low as $1.2796, its lowest since April 4. It last traded at $1.2837, down 0.3 percent on the day. Against the Yen, the euro was at 131.28, down 0.3 percent as well. But he was recovered at the last hours of trading and closed at 132.49.
The euro was hurt by talk that the ECB was checking banks' preparedness to handle a potential cut in its deposit rates to below zero
The Dow Jones industrial average DJI gained 64.25 points, or 0.42 percent, to 15,297.47. The Standard & Poor's 500 Index SPX rose 9.16 points, or 0.55 percent, to 1,659.63. The Nasdaq Composite Index IXIC advanced 19.75 points, or 0.57 percent, to 3,484.99.
In the last hour of trading the Dow hit another all-time intraday high at 15332.00
The CAC index added 70 Euros to its value, The FTSE gained more than 100 pound sterling, and the DAX jumped by more than 100 Euros.
The Gold continues its fall, dropping $93 to a level of $1355.45 per ounce since the beginning of the week.
The Nikkei share average rose on Friday with investors snapping up reflationary plays such as real estate stocks on the dips - posting a second week of gains supported by the benign effects of a weak yen.
Important announcements this week:
Tuesday:
· UK - CPI y/y.
Wednesday:
· Canada - Core retail sales.
· US - Existing home sales.
Thursday:
· China – HSBC flash manufacturing PMI
· France - French flash manufacturing PMI
· Germany – German flash manufacturing PMI
· UK – Retail sales m\m
· UK – Second estimate GDP q\q
· US – Unemployment claims
· US – New home sales
Friday:
· New Zealand – Trade Balance
· Germany – German Ifo business climate· US – Core durable goods orders m\m
The dollar soared against a basket of currencies on Friday, reaching a nearly three-year peak as debate over whether the Federal Reserve would wind down its asset buying program later this year gathered pace.
The dollar's strength was largely attributed to the euro, which fell to a six week low on expectations the European Central Bank could introduce negative deposit rates, the rate at which banks park surplus funds with it.
The dollar index .DXY, which measures its value against a basket of six major currencies, rose to 84.214; it’s highest in nearly three years. It last traded at 84.184, up 0.7 percent on the day.
Meanwhile, data in the euro zone shows they remain in a recession and raised expectations the ECB will take further action is weighing on the euro.
The euro fell as low as $1.2796, its lowest since April 4. It last traded at $1.2837, down 0.3 percent on the day. Against the Yen, the euro was at 131.28, down 0.3 percent as well. But he was recovered at the last hours of trading and closed at 132.49.
The euro was hurt by talk that the ECB was checking banks' preparedness to handle a potential cut in its deposit rates to below zero
The Dow Jones industrial average DJI gained 64.25 points, or 0.42 percent, to 15,297.47. The Standard & Poor's 500 Index SPX rose 9.16 points, or 0.55 percent, to 1,659.63. The Nasdaq Composite Index IXIC advanced 19.75 points, or 0.57 percent, to 3,484.99.
In the last hour of trading the Dow hit another all-time intraday high at 15332.00
The CAC index added 70 Euros to its value, The FTSE gained more than 100 pound sterling, and the DAX jumped by more than 100 Euros.
The Gold continues its fall, dropping $93 to a level of $1355.45 per ounce since the beginning of the week.
The Nikkei share average rose on Friday with investors snapping up reflationary plays such as real estate stocks on the dips - posting a second week of gains supported by the benign effects of a weak yen.
Important announcements this week:
Tuesday:
· UK - CPI y/y.
Wednesday:
· Canada - Core retail sales.
· US - Existing home sales.
Thursday:
· China – HSBC flash manufacturing PMI
· France - French flash manufacturing PMI
· Germany – German flash manufacturing PMI
· UK – Retail sales m\m
· UK – Second estimate GDP q\q
· US – Unemployment claims
· US – New home sales
Friday:
· New Zealand – Trade Balance
· Germany – German Ifo business climate· US – Core durable goods orders m\m