Last week, the markets showed relative stability, with equities and the Dollar experiencing a slight decline, while the JPY surged significantly after PM Takaichi’s decisive election victory.
The US Dollar ended its 2-week upward trend as US economic data showed a mixed picture: robust NFP figures coupled with a slightly lower CPI. Consequently, the DXY index closed the week down by 0.8%, at 96.884.
Both the Euro and the Pound remained relatively unchanged due to a lack of significant economic data surprises.
Commodity currencies performed strongly as the Dollar weakened. The NZD and CAD each rose by 0.4%, the AUD surged nearly 1%, and the NOK was the standout, surging 1.8%. The CHF climbed 1%, and the JPY gained 2.9% against the Dollar.
Crude Oil prices declined for the second consecutive week, with WTI closing 1.1% lower at $62.81.
Precious metals remain highly volatile, though Gold is demonstrating more stability than Silver, ending the week up 1.6% at $5,042. Silver initially had a promising week but plummeted by 10% on Thursday, ultimately closing the week down 0.6% at $77.45.
Bond yields failed to surpass key resistance levels, leading to a reversal. Last week, the 10-year UST yield dropped 16 basis points to 4.05%, while the 10-year Bund saw a 0.6% increase, closing at 129.037.
Equities experienced some instability, but there is still no technical sign of a downward shift. The S&P 500 index declined by 1.4% to 6,833 points, whereas the DAX rose by 0.8% to finish at 24,915.
Lastly, cryptocurrencies traded heavily for most of the week but managed a strong recovery on Friday. At the time of writing, Bitcoin and Ethereum are relatively stable at $69,600 and $2,080, respectively.
