Last week’s big event was the strong US Non-Farms Payrolls report for July.
The US economy created an unexpectedly strong number of jobs for July which boosted bond yields and the Dollar. A favourite gauge of the Dollar’s value against a basket of 6 foreign currencies, the Dollar Index (USD/DXY) jumped 0.58% at the close of trade on Friday, after the US Payrolls report.
The yield on the benchmark US 10-year Treasury climbed a whopping 8 basis points to 1.30% from 1.22%. Two-year US bond yields rose to 0.21% from 0.22%.
The Labour Department reported that the US economy added 943,000 jobs last month. Analysts had forecast a median rise of 870,000 jobs. June’s Payrolls number was revised higher to 938,000 from a previous 850,000. The Unemployment Rate improved to 5.4% in July from 5.9% the previous month.
The Dollar Index (USD/DXY) finished its New York trading session on Friday at 92.77, 0.58% higher than its opening at 92.27. A week ago, the Dollar Index settled at 92.10. Weekly high on the USD/DXY was at 92.855 which was hit after the robust US Jobs report. Weekly low was 91.78.
EUR/USD – finally made a move which was south after 4 days of subdued trade. The Euro tumbled to finish at 1.1763 at the close of trade on Friday. The shared currency had opened earlier in Asia at 1.1835. The EUR/USD pair hit its weekly low in New York on Friday at 1.1754. Weekly high was at 1.1909 which was the overnight high last Friday.
AUD/USD – The Australian Dollar settled at 0.7355 at the close of trade in New York on Friday. Earlier in the day, the AUD/USD pair opened at 0.7402. The Aussie Battler saw its weekly high dealt on Thursday, which was at 0.7427. Weekly low for AUD/USD was at 0.7329, seen on Tuesday.
GBP/USD – Sterling had a choppy trading week. The British Pound finished its New York session on Friday at 1.3874 after opening at 1.3927. The weekly high traded for Sterling was at 1.3958 on Wednesday. The Bank of England kept its policy unchanged at the conclusion of its meeting on Wednesday. Governor Andrew Bailey said that the BOE were ready to act if inflation persists.
USD/JPY – Against the Japanese Yen, the Dollar settled at 110.25 from its opening of 109.75 on Friday. The catalyst was the higher US 10-Year bond yield, which climbed 8 basis points to 1.30%. This followed Friday’s release of the surprisingly strong US Jobs report. Weekly high traded for USD/JPY was at 110.36, seen in New York on Friday following the US Jobs number. Weekly low for the USD/JPY pair was at 108.72, traded on Thursday.
USD/CAD – Canada’s currency, the Loonie had a choppy trading week. The US Dollar finished at 1.2552 Canadian Loonie at the close of New York on Friday. Last week, the Greenback was changing hands at 1.2471 Canadian Dollars. The weekly low traded for USD/CAD was at 1.2422 which was seen last Friday. Weekly high was at 1.2581, traded which was last night’s peak. Lower Crude Oil prices tumbled a near 6% last week which weighed on the Canadian Loonie.
USD/CHF – The Greenback closed at 0.9150 Swiss Francs on Friday from 0.9052 a week ago. The USD/CHF pair hit a weekly low at 0.9023 on Wednesday. The USD/CHF traded to a weekly high at 0.9156 in overnight trade Friday.
NZD/USD – The Kiwi mirrored its bigger cousin currency the Aussie for most of the week. NZD/USD closed at 0.7010 on Friday. A week ago, the Kiwi was worth 0.6972 US Dollars. The weekly high traded for the NZD/USD pair was at 0.7088 which was seen on Thursday. Weekly low was seen on Tuesday, which was at 0.6952.
USD/SGD – Against the Singapore Dollar, the Greenback was more subdued. USD/SGD closed at 1.3547 in New York on Friday. Earlier in the day, the USD/SGD pair opened at 1.3510. Weekly high for the USD/SGD was seen on 1.3555 on both Tuesday and in overnight trade Friday. The weekly low traded for USD/SGD was at 1.3471 which was seen on Thursday.
USD/THB – The Dollar grinded its way higher against the Thai Baht for the course of the week. On Friday, the USD/THB pair closed at 33.45 from its opening at 33.25. The high traded for the week was at 33.45 which the overnight high Friday. Weekly low for the USD/THB was at 32.72 traded on Tuesday.
USD/PHP – Like its bigger and more liquid Asian rivals, the Philippine Peso weakened against the Greenback. At the close of trade yesterday, the USD/PHP pair stood at 50.77. A week ago, the US Dollar was worth 50.05 Philippine Pesos. The low for the week in USD/PHP occurred on Wednesday, at 49.65. Weekly high traded was at 50.80 on Friday.
EUR/JPY – The Euro ended at 129.65 Japanese Yen on Friday. A week ago, the EUR/JPY pair settled at 130.17. Weekly high traded was at 130.50, recorded Friday last week. The low for this currency pair occurred on Thursday, at 129.13. At the end of the week, risk sentiment had soured, weighing on this cross-currency pair.
EUR/GBP – the shared currency lost ground against the British Pound by the end of the week. The Euro was worth 0.8477 Sterling at the close of trade yesterday. A week ago, the EUR/GBP cross closed at 0.8535. The weekly high for EUR/GBP was at 0.8558 which was recorded on Tuesday. Weekly low traded was at 0.84643, which was the overnight low on Friday.
EUR/AUD – Against the Australian Dollar the Euro gradually lost ground, finishing at 1.5990 on Friday. A week ago, the EUR/AUD pair closed at 1.6162. The weekly high was at 1.6176 which was the high recorded last Friday. Weekly low for the EUR/AUD pair was at 1.5946 last night’s base.
AUD/JPY – The Aussie finished the week at 81.02 Japanese Yen. A week ago, the AUD/JPY pair settled at 80.55. The weekly low for this cross-currency pair was at 80.18 which was traded on Wednesday. The Aussie-Yen cross hit a peak at 81.40 which was Friday’s overnight high.
AUD/CAD – The Aussie – Canadian Loonie pair closed in New York at 0.9234. A week ago, one Australian Dollar was worth 0.9162 Canadian Dollars. The weekly high for the AUD/CAD pair occurred on Thursday which was at 0.9314. Weekly low traded was at 0.9145, seen Tuesday.
GBP/JPY – Against the Japanese Yen, the British Pound had a choppy trading session for the week. GBP/JPY closed at 152.92 in New York Friday. The weekly high traded was at 153.25 which was Friday’s overnight peak. The low for the week on the GBP/JPY pair was at 151.17 seen Wednesday.
GBP/AUD – the British Pound closed the week at 1.8862 Australian Dollars. A week ago, GBP/AUD was at 1.8930. The weekly high traded was at 1.8972 which was the overnight high last Friday. The low for GBP/AUD was at 1.8756, seen on Wednesday. GBP/AUD trade was volatile last week.
SGD/JPY – the Singapore Dollar/Japanese Yen is one of the more active Asian/major cross currencies. Specially in Singapore which is Asia’s biggest trading centre outside of Japan. SGD/JPY closed the week at 81.40. Last Friday the SGD/JPY cross was at 81.00. The weekly high traded was at 81.51 which was Friday’s overnight peak. SGD/JPY hit its weekly low on Tuesday, at 80.05.
Fears Chinese mega developer Evergrande’s collapse will spark a contagion event and the ongoing European gas crisis has hit confidence.
Posted: 24 Sep, 2021 - Last update: 25 Sep, 2021
The FX markets turns risk-off after less new jobs were added in the US last month than expected.
Posted: 8 Sep, 2021 - Last update: 24 Sep, 2021
Volatility returned to the currency markets last week with the Australian and New Zealand Dollar falling the hardest against the Greenback (both down 1W -3.0%).
Posted: 23 Aug, 2021 - Last update: 8 Sep, 2021
Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.