The US Dollar absolutely crushed it against its major counterparts this past week. In fact, the Euro confirmed its 8th weekly loss against the Greenback, matching an identical losing streak back in 2014. A 9th disappointment would mean the longest monthly losing streak since 1997! But, the Chinese Yuan took the cake in terms of being one of the worst performers.
Financial market sentiment also deteriorated, with the Nasdaq Composite, S&P 500 and Dow Jones weakening -1.95%, -1.11% and -0.42% last week, respectively. Things were not looking much better across the Atlantic, with the DAX 40 and Euro Stoxx 50 falling -0.63% and -1.06%, respectively. Japan’s Nikkei 225 weakened -0.32% while Australia’s ASX 200 sank -1.67%.
A key contributor to the cautious pessimism likely stemmed from the US Treasury market. The 10-year yield gained 2.08%, bringing medium-term rates closer to the August high following a dip a few weeks ago.
There is a slew of event risk in the coming week. On Wednesday, all eyes turn to the next US inflation report. A mixed bag could lay ahead for the Federal Reserve. While core inflation is seen weakening to 4.3% y/y from 4.7% in July, the headline rate is estimated to rise from 3.2% to 3.6%, likely owing to the rise in crude oil prices of late.
Outside of the United States, the week starts off with United Kingdom employment data for British Pound traders, followed by GDP figures later. Meanwhile, AUD/USD will be tuning in for Australian employment data on Thursday. Then, EUR/USD will be eyeing the next ECB rate decision
Financial market sentiment also deteriorated, with the Nasdaq Composite, S&P 500 and Dow Jones weakening -1.95%, -1.11% and -0.42% last week, respectively. Things were not looking much better across the Atlantic, with the DAX 40 and Euro Stoxx 50 falling -0.63% and -1.06%, respectively. Japan’s Nikkei 225 weakened -0.32% while Australia’s ASX 200 sank -1.67%.
A key contributor to the cautious pessimism likely stemmed from the US Treasury market. The 10-year yield gained 2.08%, bringing medium-term rates closer to the August high following a dip a few weeks ago.
There is a slew of event risk in the coming week. On Wednesday, all eyes turn to the next US inflation report. A mixed bag could lay ahead for the Federal Reserve. While core inflation is seen weakening to 4.3% y/y from 4.7% in July, the headline rate is estimated to rise from 3.2% to 3.6%, likely owing to the rise in crude oil prices of late.
Outside of the United States, the week starts off with United Kingdom employment data for British Pound traders, followed by GDP figures later. Meanwhile, AUD/USD will be tuning in for Australian employment data on Thursday. Then, EUR/USD will be eyeing the next ECB rate decision
