The EUR/USD was little changed last week. An unexpected rise in the US unemployment rate suggested that the Fed will wait before tapering its asset purchases. This acted as a headwind for the dollar, easing the dollar strengthening in recent weeks. However, German factory orders and the ZEW economic indicator disappointed heavily on Tuesday, pulling the euro down.
The British pound traded sideways. News about the spread of the Delta variant of Covid in the UK and renewed post-Covid optimism kept the mood of currency traders lackluster. The UK government decided to go ahead with the full reopening of the British economy on July 19.
The Japanese yen was very volatile but ended the week unchanged against the dollar. Mixed NFP data dragged the USD/JPY pair lower for the third consecutive session on Tuesday.
Gold prices rose sharply on the declining dollar and on hopes that higher unemployment last month means that interest rates will remain at current levels until 2023.
US indexes continued to reach new all-time highs as accommodative central bank policies continued to provide support, while fears over persistently high inflation receded.
Oil prices rose close to six-year highs as OPEC deadlock produced no-deal between oil producing nations. Saudi Arabia insisted on boosting output by around 400,000 barrels per day each month until December, but this was opposed by the United Arab Emirates, prompting the cancelation of an already prolonged meeting. The failure to release more crude added fresh impetus to the price rally. Output quotas for August will likely remain in place, while demand may continue to rise toward pre-pandemic levels.