Market Commentary


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Weekly Commentary 12 February - 16 February 2018

The Sterling had a massive down week last week. The UK currency opened the week around 1.41002 and closed the week around 1.38240; some 276-pips lower against the US dollar. The UK currency’s decline was attributed to a variety of things including disappointing UK industrial production and trade balance data, renewed pickup in the US Dollar demand, as well as another selloff wave in European equity markets. In the coming week, investors will be paying attention to PPI and CPI on Tuesday, and Retail Sales on Friday.

The Euro had a down week last week; opening around 1.24351, hitting a high of 1.24750 and closing the week around 1.22495 - against the US dollar. This was despite a host of positive data releases including positive Industrial Production figures for both Germany and France – negative Euro-wide sentiment seemed to strengthen as the week went on. In the coming week, investors will be paying attention to German and Euro-wide GDP figures on Wednesday, as well as Wholesale Price Index figures on Friday.

The Dollar had a big down week last week against the Yen. The reserve currency opened at 110.181 and closed at 108.770. The negative tone was as a result of a flight to safe haven assets as global equities went through a major selloff – of which the Dow came out worst; plunging 1,600 points in one day. In the coming week, investors will be paying attention to the Monthly Budget Speech on Monday, Fed Member Mester Speech on Tuesday, Retail Sales and CPI on Wednesday, Initial Jobless Claims on Thursday and Building Permits on Friday.

The Aussie had a negative week last week opening around 0.79128 and closing the week around 0.78126 against the US dollar - this was the second consecutive up week against the US dollar after seven straight weeks of gains. The pair’s descent last week was as a result of a below expectation Consumer Price Index, as well as dovish rhetoric from RBA following their unchanged rate decision. In the coming week, investors will be paying attention to Westpac Consumer Confidence on Wednesday, as well as Participation rate and Unemployment rate on Thursday.

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