Weekly review (08 – 12 June 2015): A poor week for the dollar

Pictured: a badly ruffled US dollar

The US dollar suffered a poor week, depreciating against most major currencies. Wavering data coming from the US economy intensified speculations about a Fed rate hike in September, rather than in June – as was the talk until recently.

The FOMC meeting on Wednesday will be awaited with great attention and focus by all market participants. The EUR/USD edged up 150 pips, the GBP/USD appreciated by 290 pips, the AUD/USD added 110 pips to its value, while the USD/JPY ended the week 224 pips down.

Trading on the capital markets remained dynamic, the market stayed volatile, but weekly changes were small. The broad US500 registered a 0.01% positive change, the US30 was up 0.29%, while the technological USTECH100 lost 0.5%.

Definitely, the announcement by Twitter CEO Dick Costolo that he is stepping down rocked the social network’s share price. Immediately after the announcement, shares soared almost 8% in OTC trading, but later on quotes returned to their previous levels.

European indices showed volatile movements as well but the end of the week saw minor weekly price corrections. The outcome of the Greek crisis is continuing to have a strong impact on Europe’s capital market, and it is evident that this will be the main force driving market sentiments – at least until the end of the month.

The EUGERMANY30 edged up 0.11%, the EUSPAIN35 ended with a 0.23% decline, while the EUFRANCE40 lost 0.41%

Precious metals closed mixed last week. Gold appreciated 0.88%, ending the period at $1,181 per ounce, while silver lost 0.93% to close at $15.95 per ounce on Friday.

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