Weekly Overview of CFD Movements - 03/06/2024 - 07/06/2024
June 12, 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 fell sharply after the European central bank cut interest rates for the first time in five years. The bank cut rates by 0.25% to 4.25% after it said the outlook for inflation had improved.
The British pound traded lower as the dollar climbed against most of its rivals at the end of the week. The greenback jumped after US Nonfarm payrolls data came in higher than expectations.
The USD/JPY edged lower after recording an almost three week low earlier in the week. Bank of Japan governor Ueda stated on Thursday that the bank is moving towards exiting monetary stimulus.
Gold prices fell to a more than one month low on Friday after publication of NFP data. Bullion had already begun its decline following reports that China will halt buying gold reserves after 18 months of purchases.
Stock indexes climbed with the S&P 500 coming close to an all time high on Friday. AI chipmaker NVIDIA leapfrogged Apple to become the second most valuable public company in the world, at over $3 trillion. NVIDIA’s stock split took place on Friday.
Oil prices fell, sinking to an almost 4 month low midweek. But oil’s losses were pared by news that Saudi Arabia and Russia might review the agreed OPEC deal and potentially extend production cuts if the market is out of balance.