Regardless of the euro’s minor fall to 1.118 compared to 1.121 a week earlier, currency traders remained biased toward further gains in the shared currency.
Uncertainty returned to the British markets last week as investors worried about the close race between both parties in the upcoming UK elections scheduled for June 8, 2017.
The US dollar (UUP) has continued to lose its value with respect to its trading partners. The US Dollar Index fell 1.6% in the week ended May 26, 2017.
Market participants were caught by surprise when they read that the Federal Open Market Committee’s members were concerned about slowing growth in the US economy during 1Q17.
Equity markets had a positive reaction to the FOMC’s meeting minutes in May. The S&P 500 Index (SPY) record another lifetime high of 2,405.58 on May 24.
The FOMC’s May meeting minutes were released on Wednesday. Now, markets (SPY) doubt if the Fed will hike interest rates in the June meeting.
This week’s data surpassed analyst expectations. Inflation for April came in at a healthy 2.7%.
The Japanese yen (FXY) closed at 111.28 last week after clocking in a low of 110.21 in the volatile week.
Economic data from the Eurozone continued to improve.
CFTC data released on Friday indicated that commercial traders maintained a net position of 5,756 contracts in the previous week.
US markets had the worst trading session so far this year on Wednesday, May 17, 2017.
The health care sector (IBB) (VHT) (XBI) has been the most challenged sector since Donald Trump’s presidential campaign.
2016 proved fruitful for the energy sector (XLE) with an improvement in oil prices (USO) (USL).
The US stock market as depicted by the S&P 500 Index (SPY) (SPXL) (IVV) closed 2016 with gains of 11%.
Semiconductors have outperformed during summer months returning 1.1% on average.
The big winner since the US elections has been the financial sector, which is up 14% as of May 8, 2017.
The relief rally that occurred after France’s election results were declared on May 7, 2017, failed to push US markets (SPY) higher.
Markets were relieved as Emmanuel Macron, the independent centrist, gained the lead in the first round of France’s presidential election.
The first round of France’s presidential election was conducted on April 23, 2017. There was a sense of anxiety among market participants.
We can also expect some risk-off events based on the policy decisions of the Bank of Japan, which is also undergoing a quantitative easing program.