Highlights of the latest Marker Research release on USD.
Full research available here.
US dollar index was a mediocre performer last week—it outperformed 3 and underperformed against 5 indices ending the week 0.02% below the base value. It is worth pointing out that index range was just 0.62%. During the week it did not fall more than 0.25% below and did not rise more that 0.37% above the base value. It is understandable as there was only few events related to the US which had significant impact in the markets. Most of the attention was on other regions and currencies. Period started with quite a lot of data coming out from the US. Better than expected numbers gave initial mood and Eurozone data on Thursday provided small boost as well.
USD index started slowly trailing down on Friday after the downgrade of the Netherlands. Fed chairman’s speech and other data had little impact on the index as it remained around the base value after that.Yen, loonie and aussie indices were the worst performers last week. No surprise that USD managed to book gains against all of the underlying currencies which ranged from 1.28% against yen to 0.45% against aussie. Biggest loss is seen against GBP which received a significant boost from the UK data releases on Wednesday and did not look back afterwards. Losses against all the other currencies, except Swedish krona, did not surpass 0.31%.
Market volatility (Dukascopy Bank Volatility Index) and EUR/USD volatility usually follow the same path. Mostly it was so during this period of analysis as well, but there were a few periods of a mismatch. First one was on Friday. After the Netherlands' credit rating downgrade market activities were rather depressed despite the incoming data. Real breakthrough took place at the end of the day when EUR/USD started changing hand 1.5 times the usual. Similar activity could be seen in the rest of the market as well. Second similar period could be seen yesterday when the Eurozone PPI had noticeable impact on the markets, but seemingly no effect on the EUR/USD whatsoever. The two volatilities converged closer to the end of the day.
Full research available here.
US dollar index was a mediocre performer last week—it outperformed 3 and underperformed against 5 indices ending the week 0.02% below the base value. It is worth pointing out that index range was just 0.62%. During the week it did not fall more than 0.25% below and did not rise more that 0.37% above the base value. It is understandable as there was only few events related to the US which had significant impact in the markets. Most of the attention was on other regions and currencies. Period started with quite a lot of data coming out from the US. Better than expected numbers gave initial mood and Eurozone data on Thursday provided small boost as well.
USD index started slowly trailing down on Friday after the downgrade of the Netherlands. Fed chairman’s speech and other data had little impact on the index as it remained around the base value after that.Yen, loonie and aussie indices were the worst performers last week. No surprise that USD managed to book gains against all of the underlying currencies which ranged from 1.28% against yen to 0.45% against aussie. Biggest loss is seen against GBP which received a significant boost from the UK data releases on Wednesday and did not look back afterwards. Losses against all the other currencies, except Swedish krona, did not surpass 0.31%.
Market volatility (Dukascopy Bank Volatility Index) and EUR/USD volatility usually follow the same path. Mostly it was so during this period of analysis as well, but there were a few periods of a mismatch. First one was on Friday. After the Netherlands' credit rating downgrade market activities were rather depressed despite the incoming data. Real breakthrough took place at the end of the day when EUR/USD started changing hand 1.5 times the usual. Similar activity could be seen in the rest of the market as well. Second similar period could be seen yesterday when the Eurozone PPI had noticeable impact on the markets, but seemingly no effect on the EUR/USD whatsoever. The two volatilities converged closer to the end of the day.