Markets closed out yet another tumultuous week of trading, with risk-off sentiment prevailing. The real action has been in the US Dollar and the commodities markets, more especially, the precious metals markets. The US Dollar staged a recovery Friday, curbing some of the losses suffered recently and taking the pressure off precious metal prices. US equities tumbled, following a week of softness. The big news, to close out the week, was Trump’s nomination of the next Federal Reserve Chairman. He nominated Kevin Warsh, a man undoubtedly more than qualified and seen as one who could pass the Senates muster. The rebound in the US Dollar pushed the EUR lower, falling back below 1.1900, while the GBP slipped back towards 1.3700.
The rebound in the reserve tarnished the week of gains enjoyed by commodity currencies, with the AUD surrendering 0.7000, while the NZD drifted back below 0.6050. This coming week will see a plethora of data released from Australia, including commodity prices and trade numbers. Global markets will be following inflation and interest rate decisions from the Bank of England and the ECB.
