Since the Brexit vote on June 23, 2016, WTI (West Texas Intermediate) crude oil active futures prices have fallen nearly 14.1%.
Gold generally shows a variety of movements during major events. Investors consider gold and the Japanese yen safe-haven assets during international turmoil.
It’s been a year since the Brexit vote, and many things have happened since then. The global markets have reacted accordingly.
The British pound (FXB) has been sailing along since the UK election this month.
The US dollar (UUP) index had another tight range-bound week this summer.
The euro (FXE) remained confined to a narrow range against the US dollar (UUP) in the previous week.
The S&P 500 (SPY) closed for the week at 2,438.3, posting a weekly gain of 0.21%.
US stock indexes ended last week on a marginally positive note after a positive bump in the technology sector (XLK) in the last trading session of the week.
The most important indicators for this week are the flash manufacturing PMIs. Many policymakers use the reports during their decision-making process.
On Friday, June 16, the Bank of Japan (or BOJ) left its policy rate and economic assessment unchanged.
The euro (FXE) remained in a narrow trading range against the US dollar (UUP) between the levels of 1.130 and 1.115 for the last five weeks.
The British pound (FXB) fell against most of the major currencies in the previous week as markets digested the surprisingly hawkish tone of the Bank of England’s (or BOE) monetary policy statement.
The US dollar (UUP) index continued to be confined to a range with the US Dollar Index closing for the week at 97.5, a change of 0.09% as compared to last week’s close of 97.2.
The Fed’s decision had a limited impact on the S&P 500 (SPY), which closed last week at 2,433.2, a gain of 0.06% for the week.
In this series, we’ll analyze how different asset classes like bonds (BND) and global equities (VTI) reacted to last week’s central bank events.
On June 15, the day after the FOMC statement, most global markets traded with a negative tone.
The US Dollar Index (USDX) touched a high of 103.81 on January 1, 2017, and has since lost ground as political and policy uncertainty dominated the US economic outlook.
On June 14, the FOMC raised the federal funds rate by 0.25% to 1.00–1.25%. The FOMC’s surprise announcement addressed its plans to unwind the Fed balance sheet later in 2017 if the economy performs according to its members’ expectations.
The Japan Manufacturing PMI stood at 53.1 in May 2017, as compared to 52.7 in April, outperforming the preliminary market estimation of 52.0.
The Japanese yen (FXY) ended last week at 110.30 against the US dollar (UUP) and close to the previous week’s close of 110.42.