We had a relatively quiet week for a change, but with month-end/quarter-end/half-year-end flows on Friday, some markets did manage to show some volatility. Unlike recent data releases, US data mostly beat expectations, while the all-important US PCE reading came in at 2.6% YoY, as expected.

The US Dollar had a second flat week in a row, consolidating its recent gains. The DXY index closed unchanged at 105.84.

The Pound and the Euro had another boring week, even as the UK and French elections loom, with the governing parties certain to lose this time.

Commodity currencies were also very quiet. The CAD was flat, the AUD gained 0.4%, and the NZD and NOK underperformed with losses of 0.4% and 1.1%, respectively. Elsewhere in FX, the CHF dropped 0.5%, and the JPY fell again with a 0.7% loss.

Oil rallied for a third week but is now losing momentum as it approaches resistance. Last week, the WTI rallied 1.1% to close at $81.44.

Precious metals couldn’t progress as yields rose and the USD remained firm, but dips continued to be bought. Last week, Gold was marginally higher at $2,326, and Silver fell 1% to close at $29.14.

Bonds traded flat most of the week, but month-end flows spiked higher on Friday. The 10-year UST yield ended the week 14bps higher at 4.40%, and the 10-year Bund fell 0.8% to 131.498 points.

Equities tried to rally for another week, but the month-end flows slowed their intra-week gains. The S&P500 index closed the week flat at 5481 points, and the DAX was marginally higher at 18235.

Finally, crypto-currencies continued to trade poorly, registering yet another negative week. Their correlation with equities is broken, and sellers still have the upper hand. At the time of writing, Bitcoin was nearly 5% lower at $61,500, and Ethereum was down 2.7% at $3,390.

The Week Ahead:

Thursday is the 4th of July US holiday, but that doesn’t mean the markets will be quiet! We have a few data-heavy days—manufacturing and services PMI readings from around the world and Friday’s Nonfarm Payrolls.

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.