12 December Market Review

12 December 2015

EUR/USD

Continued with last week’s gains despite better than expected U.S. economic data, while the Eurozone had very few economic data released. It started off with a low of 1.0795 on Monday due to the Atlanta Fed President saying that the U.S. economy was “solid, moderate growth” but that, “we don’t know exactly how the economy is going to evolve. We can’t commit ourselves…in advance to a particular pattern or particular schedule”. The pair then rallied the rest of the week and the EUR/USD closed at 1.0993, with a total gain of +1.1% from the previous week’s close.

USD/JPY

With the mixed economic numbers out of both countries, the asset flows favored the Yen over the Dollar and it ended up losing ground because of it. It started the week with its high of 123.47 on Monday after BOJ Governor Kuroda said that, “The Bank of Japan has been pursuing quantitative and qualitative monetary easing (QQE) since April 2013, and the policy has been steadily exerting its intended effect toward achieving the price stability target of 2 percent. It goes without saying that the financial system serves as an imortant transmission channel through which QQE produces its effects.” With the remainder of the economic data that was released, the pair closed at 120.82, with an overall loss of -1.9% for the week over the last week.

GBP/USD

Continued with last week’s gains because the BOE stayed the course with rates and stimulus, and even though the U.S. had mixed economic data, the UK reported mostly lower than expected numbers. Weekly low came on Tuesday of 1.4955 due to worse numbers than expect in UK Manufacturing Production. It ended the week with its high of 1.5239 despite better U.S. retail numbers and went on to close at 1.5222, with its overall weekly gain of +0.8%.

AUD/USD

Had a losing week due to the price of oil dropping to $35.62 a barrel even though the employment numbers our of Australia were impressive. The high for week was Monday at 0.7338 despite Job Advertisements being better than expected. The pair ended the week selling off as oil broke above the $37 a barrel range and better than expected numbers from the U.S. The weekly loss was -2.1% for the week with the close of 0.7183.

USD/CAD

Started the week of weakly when the price of oil slid, making its weekly low Monday at 1.3370. It went on to rise the rest of the week, with its weekly high coming on Friday at 1.3756. Price of oil falling and positive U.S, economic numbers helped the rate close at 1.3753, for a total weekly gain of +2.9%.

NZD/USD

The RBNZ cut its Official Cash Rate by 25pbs for its benchmark coupled with mixed U.S. economic data let to the slight decline of the pair. The low for the week came on Wednesday when the RBNZ cut its benchmark, leading to the price of 0.6564. The high came on Thursday, of 0.6780, after mixed data out of the U.S. After a slight sell off on Friday, it closed with a weekly loss of -0.5% at 0.6708.