It was a relatively quiet week, with little movement in FX and other major asset classes. Economic data releases didn’t spring any surprises, with PMI numbers coming in mixed. As a result, markets moved broadly sideways, except for equity indices, which continued their grind higher.

The US Dollar is still struggling to demonstrate any significant price action. Last week, the DXY index fell 0.3% to close at 103.961.

The Euro and the Pound had a second quiet week in a row, gaining some ground vs. the USD but doing not much else.

Commodity currencies took advantage of Dollar weakness, but the slide in Oil prices put the brakes on any real progress. The AUD rallied 0.5%, the NZD gained 1.2%, the CAD posted marginal gains, and the NOK fell 0.3%. Elsewhere in FX, the CHF and JPY were all broadly flat on the week.

Oil reversed all of last week’s gains and remains volatile. Last week, the WTI fell 2.1% to close at $76.54.

Precious metals had a mixed week, with Gold gaining 1.1% at $2,035 and Silver falling 2% at $22.95. Metals should perform well as long as Gold remains above the $2,000 psychological and technical level.

Equities continued their grind higher, frustrating bears yet again. Last week, the S&P500 index and the DAX rallied 1.8% to close at 5087 and 17419 points, respectively.

Bonds managed to stop their 2-week drop, finally showing some strength. The 10y UST yield fell 3bps to 4.25% and the 10y Bund posted marginal gains to close at 133.207.

Finally, crypto-currencies are still looking strong, consolidating their recent powerful form. At the time of writing, Bitcoin was broadly flat at $51,400, and Ethereum was up nearly 8% at $3,000.

The Week Ahead:

The week ahead should be very lively, as we have some important economic data releases – more PMI data, the US Core PCE index (the Fed’s favourite measure of inflation), the RBA interest rate decision and more.

We will also be focusing on equity indices, as they aim for yet more ATHs and look unstoppable for now.

Market Commentary: This communication is for informational purposes only. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. All market prices, data, and other information are not warranted as complete or accurate and are subject to change without notice. Any comments or statements made herein do not necessarily reflect those of Coeus Capital. Coeus Capital does not assume any liability whatsoever for the content of this newsletter or make any representations or warranties as to the accuracy and completeness of any information contained in this newsletter.