Forex Market Overview

Last week was the first positive week for the US Dollar in nearly a month. Ms. USA’s progress is largely attributed to loosened trade tensions, as well as jobs report that was slightly above average. With several major reports coming out this week, expect to see a lot of movement.

The Canadian Dollar performed the best overall, despite disappointing jobs numbers. Meanwhile, the Euro and the Franc remained surprisingly stable, both failing to establish a clear trend in either direction.

As the UK’s Brexit woes continue, the Pound once again found itself positioned at the bottom of the forex stack. With Brexit hardliner Boris Johnson pegged to likely take over as the nation’s PM, the Pound’s difficult summer is likely to continue.

Across the Pacific, the Japanese Yen and Australian Dollar both enjoyed productive weeks. With few significant reports on the horizon, expect these currencies to remain near the top of the charts.

Taking a Closer Look at GBP/USD

The GBP/USD pair failed to form the potential reverse Head and Shoulder chart pattern we identified a few weeks ago.

GBP/USD Chart Analysis - Daily Time Frame

This screwed up its chances for a bullish reversal in the near term especially as the pair continues below the daily Ichimoku Cloud. 

Crypto Market Overview

 Last week was another wild ride for Bitcoin, which saw an incredible uptick in volatility, as well as an increase in the currency’s active range. Following its incredible surge to $13,000 just two weeks ago, Bitcoin has cooled down a bit and is currently trading around the $11,000 mark.

Crypto’s interesting summer continues, with regulators and market makers actively seeking to address widespread concerns. Ponzi schemes, high-frequency trading practices, and pump and dump schemes are just a few problems at the forefront of the industry’s ongoing reforms.

More major companies and nations are considering using cryptocurrency, which may help inject the markets with some long-needed stability. Facebook, Hyundai, Singapore, and India have all made major moves. Though Facebook’s Libra has inspired more questions than the company has been able to provide answers, it certainly has helped attract the interest of some of the world’s largest players.

Stock Market Overview

It was a busy week in the stock market which—like the crypto industry—experienced several waves of ups and downs. On Friday, the S&P 500 experienced a 1 percent downward swing, only to make up for its losses the very next day. The Dow and Russell 2000 experienced similar movements as well.

Overall, it’s been a good year for most major indexes—the S&P 500 had its most productive first half of the year since 1997. While many of these gains were simply making up for the losses occurring around the end of 2018, it does appear that lasting value has been added to the market.

Looking at the banking industry, as Deutsche Bank undergoes a period of major reconstruction, the bank’s stock has steadily fallen. Elsewhere, HSBC announced it was hiring a Citigroup veteran to handle American business, causing their stock to experience a mild upward tick.

This week, we’ll keep a close on the Federal Reserve. The central bank’s reluctance to cut rates will likely have a negative impact on the stock market, though this is something that can certainly change quite quickly. That wraps it up for this week’s top news stories.