Weekly Overview of CFD Movements - 27/05/2024 - 31/05/2024
June 5, 2024
Risk Disclaimer: The example below is for illustrative purposes only and is based on price movements derived from Contracts for Difference (CFDs). The calculations reflect hypothetical outcomes using historical or specified price data for the relevant instrument on the stated date and are not indicative of future performance. Any reliance placed on this material is strictly at the user’s own risk.
The Eurodollar inched higher in a volatile week that saw a ten day high and a two week low recorded. Eurozone CPI inflation came in slightly higher than expected on Friday.
The British pound increased as the dollar fell against most of its rivals. US economic data was softer last week, rekindling some hopes that inflation may be declining.
The USD/JPY fell slightly, but on Friday the Bank of Japan confirmed it spent $62 billion in the foreign currency markets to support the under pressure Yen.
Gold prices fell to their lowest level in over three weeks on Friday. Prices fell after US President Biden revealed a new three-phase ceasefire proposal to bring the conflict between Israel and Hamas to a potential end.
The price of the stock indexes traded lower, although losses were pared on Friday after a key US inflation indicator came in below expectations. NVidia hit another record high after Elon Musk revealed that his company xAI will use NVIDIA chips to power its products.
Oil prices declined by Friday’s close of business, but hit a 4-week high midweek. Oil prices were underpinned by reports suggesting OPEC would agree to continue its existing cuts until the end of the year. On June 2nd OPEC met and decided to only prolong existing cuts until the end of the third quarter.