The markets slowed down last week, stopping the recent risk-off action and general market selling. Equity indices closed the week broadly flat, which was a relief for investors, but this move might not be over just yet.

The US Dollarfinally found its footing and stopped its recent downtrend. US economic data came in mixed last week, and the DXY index closed roughly flat at 103.154.

The Pound saw some weakness early on in the week but rallied back to close roughly unchanged. EURGBP remains in the mid-85s, and GBPUSD is in the mid-1.27s.

The Euro had a quiet week, even as Eurozone economic data surprised to the upside. The issue is still the magnitude and timing of ECB rate cuts, and we need more evidence to have a firm view of the single currency.

Commodity currencies had a second good week in a row, helped by the rallying oil price. The NZD rallied 0.7% against the Dollar, the AUD and CAD gained around 1%, and the NOK rallied 1.2%. Elsewhere in FX, the JPY was flat, and the CHF fell 0.9%.

Oil reversed the previous week’s losses and trades well within the broad 1-year range. Last week, WTI rose nearly 4% to close at $77.

Precious metals once again showed two very distinct sides. Gold reigned supreme again, showing great strength and potential, but Silver retreated further. Last week, Gold was marginally lower at $2,431, and Silver fell nearly 4% to $27.45.

Bonds sold off after the previous week’s monster rally as resistance was reached. Last week, the 10y UST yield rose 15bps to 3.94%, and the 10y Bund fell 0.5% to close at 134.517 points.

Equities finally stopped falling but didn’t manage to bounce at all. Last week, the S&P500 index was flat at 5341 points, and the DAX closed marginally higher at 17722 points.

Finally, crypto-currencies remain under pressure –alt-coins, particularly, are suffering. At the time of writing, Bitcoin was down 2.5% at $60,400, and Ethereum crashed 13% lower at $2,610.

The Week Ahead:

Will equities manage to bounce next week, or was last week’s consolidation just a short-term thing? All eyes will also be on yields and the Dollar, which will likely resume their move lower. We have interest rate decisions from the RBNZ and Norges Bank, as well as CPI data from the US.

Market Commentary: This communication is for informational purposes only. It is not intended as an offer or solicitation to purchase or sell any financial instrument. 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.