The battered dollar licked its wounds after reaching a 15-month low against a basket of global currencies during early trading on Wednesday, as investors repositioned ahead of a multitude of key risk events this week.
On Friday, crude oil moved higher and hit a July peak supported by a weakening U.S. dollar and bullish Wednesday’s EIA weekly report. As a result, the black gold climbed above the 200-day moving average, but is it enough to trigger a rally above $50?
In the previous sections of this edition of the Market Overview, we presented the demand and supply outlook for platinum and palladium. In that part, we would like to analyze the potential benefits of adding these precious metals into the investment portfolio.
On the night of Nov. 9, the S&P 500 E-mini futures were halted after dropping 5% on the news that Trump had won the election. Gold was up 4.3% and the Nikkei was down 5.3%. Markets are more comfortable with the status quo and Hillary Clinton representative it in this election. The panic subsided and SPY actually closed up 0.54 from the previous day’s close.
The fact that Sterling sharply depreciated across the board on Tuesday, after British inflation rates unexpectedly dropped to 2.6% in June, continues to highlight how the currency has become increasingly sensitive to monetary policy speculation.
It has certainly been an eventful week for the financial markets, as comments from central bank heavyweights which fueled monetary policy speculations and political uncertainty in Washington, breathed life back into the currency and equity markets.