Market dynamics: currencies and commodities (15.10.2018)

Market dynamics: currencies and commodities (15.10.2018)


Welcome to InstaForex TV channel. The economic news will be presented by me
Kate Stikhina. You are watching the overview of the currency
and commodity markets for last week. The dollar traded higher on Friday and was supported by investor confidence in the U.S. economy, despite criticism by President Donald Trump of the Federal Reserve and a sell-off in the U.S. equity market. The dollar has risen by 2.5 percent since
July on expectations US interest rates will soon be raised further and on safe-haven flows from the U.S.-China trade war. But a drop in U.S. Treasury bond yields and weaker-than-forecast advance in U.S. consumer prices pushed the dollar down by half a percent on Thursday as traders cut their bets on Federal Reserve rate hikes The euro moved down on Friday after hitting a weekly high at 1.1611 after ECB President Mario Draghi toned down his outlook for a rise in inflation from “relatively vigorous” to “gradual”. ECB minutes on Thursday suggested the central
bank was on track to normalize its ultra-loose monetary policy this year despite concern
about slowing growth in Europe. The Japanese yen, a preferred currency in
times of market turbulence, traded at 112.34 on Friday. It had strengthened to 111.83 versus the dollar
on Thursday, its highest level since September 18. Meanwhile, last week was a tough week for
cryptocurrencies. The total cryptocurrency market lost $18 billion
of its value in the course of a few days. On Friday Bitcoin finally began to stabilize. The world’s largest digital asset began to
slide on Wednesday evening and dropped below $6,200 for the first time in a month. Bitcoin last traded in the $6,200 range, ending
the week by about 5 percent lower. But it kicked off last week well above $6,500. Prices for oil moved higher on Friday, but signs of rising crude supplies contributed to an overall weekly loss of 4%. November West Texas Intermediate crude futures rose to settle at $71.34 a barrel on the New York Mercantile Exchange. On the week, prices shed by about 4%. Brent crude futures for December delivery closed higher at $80.43 a barrel after briefly dipping as low as $79.23. It posted a weekly decline of 4.4%. Both benchmarks shed by 3% on Thursday. They were moving in step with a two-day selloff across global stock markets. Meanwhile, gold prices ended lower on Friday,
bouncing back from the highest level in more than two months as global stock markets recovered. December gold futures declined by $5.60, or nearly 0.5%, to $1,222 an ounce, a day after their highest finish since August 1. For the week, gold climbed by 1.4% — its
second weekly rise in a row. You’ve watched the weekly review of foreign exchange and commodity markets on InstaForex TV channel.

Leave a Reply