Last week we saw a reversal of the dollar strength which saw once again market expectations of 2 or more rate cuts in 2024 back on the table.
With disappointing job numbers and a less hawkish than expected Powel the dollar tumbled away its gains and stock markets were buoyed.
The Yen reversed all of its previous week’s loss as the BoJ intervened in the market. There was substantial buying of Yen through the week after it looked to break 160. By the end of the week JPY was back around the 152 level.
In commodity currencies both Aussie and Kiwi had good weeks ending the week second and third strongest. The AUD had a good week as expectations of an RBA rate cut got pushed from September to October. Additionally, both were helped by the overall risk on which ended the week and renewed optimism around China markets.
Both Euro and Pound had relatively quieter weeks with little or no surprises they both ended the week in their ranges.
CAD had a difficult week performing as bad as the US Dollar. The market is expecting a rate cut in June from the BoC as disappointing GDP and other data continues to weigh on the currency. This coupled with the collapse of the oil price was also going to give the CAD a difficult week.
Oil continued its volatility with large intra week swings. The end of the week say WTI close 6.8% lower just below $78.
Next week the market will be digesting the moves of last week and to see if the risk on rally continues.
Data wise we have interest rate decisions from RBA and BoE.
Weekly Majors’ Market Performance
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