Market News & Analysis

USD & JPY weaken as risk appetite increases

Apr 15, 2019 | Market Update

High-impact economic news:

23:30 USD FOMC Member Evans Speaks

Overnight
01:30 CAD BOC Business Outlook Survey
04:00 USD FOMC Member Evans Speaks

After closing last week lower, the USD is again weaker in early trade, following a positive start to corporate earnings’ season. JP Morgan reported better-than-expected results while Disney unveiled a new streaming service to rival Netflix. The Dow Jones rose 269 points or 1.03% while the S&P 500 climbed 19 points or 0.66%. The Nasdaq closed 36 points or 0.46% higher.

The USD fell about 45 pips to a 2.5 week low against the Euro, as investors searched for riskier assets. The greenback fell against most of the majors, including the Pound Sterling, the Australian and the Canadian dollar. In fact, the Aussie rallied to a fresh 6-week high against the USD, to close the session at 0.7171.

The biggest move for the Aussie was against the Japanese Yen. Spiking about 80 pips on Friday, the AUD/JPY reached its highest level since December 19, almost 4 months. For the week, the currency pair is now up 1.11%. There were similar moves with the USD/JPY pair as risk appetite increased amid easing concerns over global economic growth. It comes after China strong economic data, beating expectations on trade balance, money supply and new consumer loans. The USD/JPY pair is 0.51% higher for the week.

The price of gold also weakened during Friday’s session, with the commodity hitting a weekly low of US$1,290.41 an ounce. On February 19, gold hit a 2019 high of US$1337 an ounce, but has struggled to hold support above US$1300 since. Gold is now on track for its third-consecutive session of losses.

Oil prices traded mostly flat last week, but still maintains an uptrend. WTI Crude oil was mostly unchanged on Friday, closing at US$63.86 per barrel. UK Brent edged 0.61 higher to US$71.25 per barrel.

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