Market dynamics: currencies and commodities (June 10 – 14)

The US dollar rose to its highest level in a week on Friday on US solid retail sales data which suggested that the US economy remains
in good shape, and therefore the Federal Reserve will not need to cut interest rates when it
meets on June 18-19. The EUR/USD pair reached a fresh 1-week low
at 1.1201 on Friday. Then it bounced modestly to the upside, and
ended the week by 130 pips below last Friday’s close.take a more dovish shift on its monetary
policy if the eurozone data continues to disappoint investors. The pound slipped by 0.4 percent against the
dollar to 1.2616 on Friday, down by 1.1 percent for the week, with most of the losses following
the release of US retail sales data. However, the selling pressure began on Thursday
after Boris Johnson won the first round of votes for the new Tory leader and prime minister. There are concerns that the next UK prime
minister is going to be unwilling to take the steps necessary to avoid a no deal, hard
Brexit. The AUD/USD pair tumbled to its lowest level
on Friday since the flash crash witnessed in January. For the week, the pair lost more than 100
pips after starting near the 0.70 mark. Disappointing employment data from Australia
and the lack of positive developments surrounding the US-China trade conflict made it difficult
for the Aussie to find demand. The price of Bitcoin crossed the $9,000 threshold
on Sunday for the first time in more than a year. Investors have been bullish on Bitcoin recently,
with optimism triggered by the expected announcement this week that Facebook will launch a new
cryptocurrency. Meanwhile, oil prices ended the week lower,
despite Thursday’s climb of more than 2% after an attack on two tankers in the Gulf
of Oman, which triggered concerns about disruptions to the global oil supplies. August Brent crude gained 70 cents, or 1.1%,
to settle at $62.01 a barrel on ICE Futures Europe. However, it ended down by 2% for the week. Meanwhile, West Texas Intermediate crude for
July delivery rose by 23 cents, or 0.4%, to close at $52.51 a barrel on the New York Mercantile
Exchange. Prices lost 2.7% for the week. Gold futures finished the week with a modest
gain after an earlier rise to a 14-month high. Gold for August delivery rose by 80 cents
on Friday, or nearly 0.1%, to settle at $1,344.50 an ounce. Prices had climbed to as high as $1,362.20
during Friday’s session, which was the highest intraday level since April 2018. Prices peaked amid uncertainty about the US-China
trade relations and the Fed’s plans for monetary policy.

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