Last week was very slow in terms of most asset class prices. Most FX pairs closed broadly unchanged, as did precious metals and cryptos. US GDP and PCE data came in slightly below expectations, which puts further focus on next week’s Payroll data and interest rate decision.

The US Dollar struggled, marking a second week of lateral movement. The DXY index concluded the week with a slight dip, closing at 104.625. This persistent lack of strength in the US Dollar is a significant trend to watch, as it could have far-reaching implications for various asset classes.

The Pound and Euro showed tiny movement as economic data came broadly within expectations. The ECB is expected to deliver its first rate cut next week.

Commodity currencies regained minor losses last week, closing slightly higher this week. The AUD and NZD were up 0.4%, the CAD gained 0.3%, and the NOK rallied 0.8%. Elsewhere in FX, the JPY fell 0.2%, and the CHF rallied 1.3%

Oil still looks vulnerable as the global economy starts to slow down. Last week, WTI fell 0.8% to close at $77.12.

Precious metals remain under pressure, with short-term traders trying to force some bearish technical events. Last week, Gold was marginally lower at $2,327, and Silver was flat at $30.40.

Bonds had another quiet week as markets tried to determine how far and how fast central banks will cut rates. Last week, the 10-year UST yield rose 0.4% to close at 4.50%, and the 10-year Bund fell 0.6% to close at 129.277.

Equities faced a challenging week, but the potential for a rebound was evident as month-end flows rescued them in the final hour of Friday’s trading. Despite a 0.3% dip, the S&P500 index closed the week at 5291 points, and the DAX fell 1.6% to 18498, hinting at a possible upward trajectory.

Finally, crypto-currencies are consolidating their recent gains but remain correlated with risk. At the time of writing, Bitcoin was down 2% at $67,800, and Ethereum was flat at $3,800.

The Week Ahead:

The week ahead should be very lively! The ECB and BoC are expected to cut rates by 25bps, we have a wide range of PMI releases, and we also get US Unemployment & 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.