Global markets and trends are changing every day. Let’s discuss what major updates have Forex, Stocks, Crypto, and Commodity markets experienced this week.
Due to the rebound in global risk appetite, the U.S. dollar fell against major currencies for the first time since last Friday, while the Japanese yen fell to a three-year low, and the price of Bitcoin hit nearly US$60,000.
The U.S. dollar index fell 0.1% to 93.9 and fell 0.2% this week. This will be the first weekly decline in six weeks. When investors seek safety, the U.S. dollar tends to rise.
As U.S. corporate earnings exceeded expectations and eased concerns about economic stagflation, global stock markets rose this week.
Only against the yen can it maintain the momentum of the past five weeks, rising 0.4% on Friday and hitting 114.18 yen for the first time since November 2018.
Analysts said that investors had been squeezed out of their long U.S. dollar positions in the past few days. Inflation data does not support further appreciation of the currency.
The U.S. dollar has been rising since the beginning of September, as the Fed is expected to tighten monetary policy faster than previously expected in the context of economic improvement and soaring energy prices.
The minutes of the Fed’s September meeting confirmed this week that this year would almost certainly begin to reduce stimulus measures, despite the severe differences among policymakers on inflation and its response.
How have other currencies performed?
The euro rose slightly by 0.1% to 1.1611 against the U.S. dollar, hitting US$1.1624 for the first time since September 4 on Thursday.
Overnight the pound rose to its highest point since September 24 at $1.3734, before increasing 0.4% to $1.3722.
The risk-sensitive Australian dollar rose 0.2% to 0.7428 U.S. dollar against the U.S. dollar.
The New Zealand dollar rose 0.4% to US$0.7061, extending Thursday’s 1% gain.
Among cryptocurrencies, Bitcoin rose to $60,000, a peak in nearly six months, as traders’ confidence in the United States grew stronger.
Regulators will approve the launch of exchange-traded funds based on futures contracts.
The U.S. stock index rose on Friday as the better-than-expected third-quarter earnings report put the S&P 500 on an upward trajectory.
The Dow Jones Industrial Average rose about 210 points or 0.6%. S&P 500 index futures rose 0.4%, and Nasdaq 100 index futures rose 0.3%.
As Goldman Sachs’s third-quarter performance significantly exceeded both revenue and profit, Friday’s earnings momentum continued. Bank stocks rose more than 1%.
The S&P 500 index hit its best day since March 5, rising 1.7% on Thursday, and the major gains exceeded expectations. The Dow rose 1.55%, ending a four-day losing streak.
The 30-stock benchmark index hit its best day since July 20. The Nasdaq Composite Index rose 1.73%, its best performance since May. All three averages are expected to end the week in green.
The better-than-expected employment data on Thursday boosted market sentiment. According to the Labor Department, the weekly initial jobless claims totalled 293,000 in the previous week, which is the first time it has fallen below 300,000 since the pandemic began.
Despite the hot inflation data and some warnings that it might undermine the economic recovery, Thursday’s gains appeared. According to the Ministry of Labor data, the consumer price index rose 0.4% in September and 5.4% year on year.
Crypto market updates are mostly moving around the most prominent cryptocurrency’s, Bitcoin’s price changes. So, in our weekly overview, we will basically discuss Bitcoin’s performance that influenced the market most.
Bitcoin reached a six-month high on Friday, just inches away from $60,000.
The world’s largest cryptocurrency soared to 59,920 USD, the highest level since May. 10. But it strives to break the 60,000 USD mark.
The last transaction price of Bitcoin in the past 24 hours has risen by 3% to $59,274.
According to analysts, traders are optimistic about the possibility that the U.S. SEC will approve the first Bitcoin futures exchange-traded fund.
The ProShares Bitcoin Strategy ETF is scheduled to debut on the New York Stock Exchange on Tuesday, and experts believe that the SEC is unlikely to oppose the product.
Approving an ETF that allows mainstream investors to access Bitcoin will be crazy news in the crypto industry, which has long been pushing Wall Street to accept digital assets more widely.
The last trading price of the CME Bitcoin futures contract on November 1 was approximately US$60,515
However, not all the other cryptos surged like Bitcoin after Friday’s ETF news. Ethereum, the second-largest token, rose 1% to US$3,771 on spot exchanges. However, XRP and ADA both fell about 2%.
Bitcoin and other cryptocurrencies have been soaring this year. The number one digital token hit an all-time high of nearly $65,000 in April and then fell sharply after the Chinese cryptocurrency market was hit. Since then, it has made a comeback, and the price has doubled so far this year.
Due to the surge in investor interest, regulators have taken a stricter stance on cryptocurrencies this year. However, the industry has been fighting. Coinbase on Thursday called on the United States to establish a new regulatory agency to oversee digital assets.
Earlier this week, Jon Cunliffe, deputy governor of the Bank of England, warned that cryptocurrencies could trigger a global financial crisis similar to 2008.
Earlier Friday, US West Texas Intermediate crude oil and international benchmark Brent crude oil futures rose slightly, recovering from where they stopped in the previous trading day. On Thursday, oil prices rose by 1% after Saudi Arabia, the largest oil producer, rejected calls to increase the supply of OPEC+, and the International Energy Agency said that soaring natural gas prices may boost demand for oil from power generators.
At 04:28 GMT, the December WTI crude oil futures trading price was US$81.32, up 0.55 US dollars or +0.68%, and the December Brent crude oil futures trading price was 84.64 US dollars, up 0.64 US dollars or +0.76%.
According to the weekly government inventory report, price trends indicate that traders are playing down the unexpectedly significant increase in US crude oil inventories, as refineries cut production during a period when output at these facilities was generally slow.
Saudi Energy Minister rejects calls to increase OPEC+ oil production
OPEC leader Saudi Arabia on Thursday dismissed calls to speed up the increase in oil production, saying that its efforts with allies are sufficient and to protect the oil market from violent price fluctuations in natural gas and coal markets.
He stated that OPEC+ would increase production by 400,000 barrels per day in November and increase production again in the next few months.