The British Pound GBP was a mover and shaker last week, hitting HIGHS against both the USD (30-DAY), EUR (90-DAY) and other major FX.
Michael Moran Volatility in some currency pairs spiked last week. Last week, the US Dollar eased against most of its rivals after the Federal Reserve signalled that it was in no hurry to taper its bond-buying program.
The week’s worst performing major currency however was the Australian Dollar. The Aussie finished the week lower against the Greenback and the other Major currency pairs. An extended lockdown in greater Sydney by a whole month had traders speculating that the Reserve Bank of Australia would maintain its dovish stance for its upcoming meeting on Tuesday (3 August).
Yesterday, China’s National Bureau of Statistics (NBS) released its Manufacturing PMI data. Which dropped to 50.4 in July from a previous 50.9 in June. This could put further pressure on the Australian Dollar. Australia’s largest trading partner is China.
Risk appetite also waned as the week wore by. Which weighed on risk FX, led by the Aussie Dollar, while providing minor support for the haven sought Japanese Yen.
The Dollar Index (USD/DXY), a favoured gauge of the Greenback’s value relative to a basket of 6 major foreign currencies, slid to a one-month low on Thursday at 91.75. USD/DXY ended at 92.10 at the New York close (Friday). A week ago, the USD/DXY settled at 92.90.
EUR/USD – the shared currency finished the week higher against the overall weaker US Dollar. The Euro finished at 1.1870 in New York on Friday compared to 1.1773 a week ago. On Friday in New York trade, the Euro hit a one-month high at 1.1909. Weekly low traded for the shared currency was 1.1754, which was seen on Wednesday.
AUD/USD – The Australian Dollar plunged to a weekly low at 0.7317 in New York trade on Wednesday. Last week the Aussie settled at 0.7365. Bearish sentiment engulfed the Aussie Battler as the country struggled with lockdowns amidst a rising spread of the Delta variant. Over the weekend, Brisbane announced its own lockdown after 6 new cases of the Delta variant were reported. Broad-based US Dollar weakness lifted the Aussie close to a 0.7398 in New York on Friday. The AUD/USD pair was lower against other FX, which is mirrored in its cross-rates.
USD/JPY – Against the Japanese Yen, the US Dollar finished the week at 109.69, against 110.57 last Friday. The Greenback slid to an overnight and weekly low at 109.42. The Dollar traded to a one week high at 110.59 last Friday. On Friday, Japanese Prime Minister Yoshihide Suga noted that the Delta variant of the coronavirus was spreading at an unprecedented speed. Which had no impact.
GBP/USD – Sterling also had a choppy trading session last week, finishing with an overall gain versus the Greenback. The British Pound traded between 1.3716 (weekly low, seen in overnight trade last Friday) and 1.3983 (overnight high in yesterday’s session). GBP/USD eased to close at 1.3905 in New York from its 1.3965 opening. Last Friday Sterling settled at 1.3745.
USD/CAD – Against the Canadian Loonie, the Greenback finished the week at 1.2472 yesterday from its opening at 1.2445 for a modest gain. Last Friday though the USD/CAD pair settled at 1.2565. The weekly high for USD/CAD was at 1.2607 (Friday week). The weekly low at 1.2422 was hit overnight.
NZD/USD – The Kiwi slipped to 0.6972 at yesterday’s close in New York from its 0.7010 opening. Like its bigger cousin currency, the Aussie, the Kiwi lost ground against the Greenback. Last Friday the NZD/USD pair finished at 0.6975, little changed from last nights close. During the week though, the NZD/USD fell to a weekly low at 0.6901(Thursday). The week’s recorded high was at 0.7021, which was seen in New York overnight.
USD/CHF – closed at 0.9052 last night after opening at 0.9060 in Asia yesterday. Last Friday, the Greenback finished at 0.9195 in New York. USD/CHF traded to a weekly high at 0.9222 (last Friday). The weekly low traded was at 0.9039 which was recorded last night.
USD/SGD – had a relatively subdued trading week, which contrasted with that of the other major currency pairs. The Greenback closed at 1.3542 Singapore Dollars yesterday from its 1.3525 opening. Last week, the USD/SGD finished in New York at 1.3600. The weekly high traded was at 1.3624 (Tuesday) while the recorded low was at 1.3519 (Thursday, in New York).
USD/THB – the Dollar-Thai Baht pair settled at 32.95 in late New York trade yesterday. USD/THB opened at 32.85. A week ago, the USD/THB pair recorded a New York close at 32.95, unchanged from last night’s close. During the week though the high traded was 32.98 (overnight highs for both Tuesday and Wednesday). USD/THB traded to its weekly low at 32.69 (Tuesday).
USD/INR – The Greenback finished virtually unchanged against the Indian Rupee, settling at 74.35 at the close of trade in New York on Friday. A week ago, the USD/INR was at 74.25. Weekly high traded was at 74.57 (last Friday). USD/INR hit a weekly low at 74.22 on Thursday.
USD/PHP – The Dollar finished the week marginally lower at 50.05 Philippine Pesos (Friday). Last week, the USD/PHP pair was at 50.35. Weekly high traded for the USD/PHP pair was at 50.78 (Wednesday). The low traded for the week was at 50.03 which was hit overnight.
AUD/JPY – Probably the major cross currency pair that mirrors the market’s risk appetite. The Australian Dollar settled at 81.42 Japanese Yen last Friday. This week, the AUD/JPY pair finished its New York session at 80.55. Weekly high traded was 81.66 (last Friday). AUD/JPY weekly low was 80.63, recorded on Thursday.
EUR/JPY – The Euro closed at 130.17 Japanese Yen, down marginally from its open at 130.10. During the week, EUR/JPY hit a low at 129.55 (Wednesday). The weekly high traded was at 130.56 (Thursday in New York).
EUR/AUD – The Euro rose modestly against the risk-weakened Australian Dollar. Friday’s close was at 1.6162, up already 0.41% from its opening of 1.6075. A week ago, the EUR/AUD settled at 1.5985. Weekly low traded was at 1.5936 (Friday week). EUR/AUD hit a weekly and overnight high at 1.6176.
AUD/NZD – The AUD/NZD pair also finished marginally lower at the end of the week, closing at 1.0532 from 1.0557 last Friday. The Aussie hit a peak at 1.0608 on Thursday. The weekly low traded was 1.0514, which occurred in overnight trade.
GBP/AUD – the British Pound also rallied strongly against the Australian Dollar. By the close of trading in New York on Friday the GBP/AUD settled at 1.8930. A week ago, GBP/AUD settled at 1.8665. Weekly high traded was 1.8972 (Friday, overnight in New York). The weekly low trade was recorded at 1.8565 which was last Friday’s low.
GBP/JPY – Sterling finished the week at 152.50 Japanese Yen. A week ago, GBP/JPY settled at 151.95. During the week, GBP/JPY hit a peak at 153.45 (Thursday in New York trade). The low recorded for last week was at 151.40 (Tuesday).
EUR/GBP – The shared currency settled at 0.8535 at the close of New York on Friday. Last Friday, the Euro changed hands at 0.8565 Sterling. Weekly high traded was 0.8585 (Friday week). The weekly low for the EUR/GBP pair was recorded on Thursday in New York trade at 0.8500.
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