The dollar index overall performance shock this week. Driven by the escalation of the situation in the Middle East at the beginning of the week, once stood on 98.5; mid-week U.S.-Iraq ceasefire is expected to heat up, oil prices plummeted, the dollar fell back to 98 below, closed at 97.84 on Friday, for the second consecutive weekly decline. The core logic of the market around oil prices, risk aversion and the Federal Reserve interest rate is expected to switch.
Precious metals this week, the overall first down and then up. Gold early in the week by the “high oil prices push up inflation expectations” dragged weaker, but in the middle of the week with the oil price plunge, gold prices quickly returned to 4700 U.S. dollars above, closed at 4715.49 U.S. dollars / ounce on Friday, up 2.17%. Silver performance is stronger, risk appetite repair superimposed on the industrial attributes led to its rise significantly ahead of gold, closed at $80.33 / ounce on Friday, up 6.64%.
International oil prices experienced a “geopolitical premium collapse” this week. At the beginning of the week, Brent is still above $100, but in the middle of the week, the market bets on the U.S. and Iran close to a ceasefire, Brent oil plummeted and lost the $95 mark, WTI once fell to $90 near.
Non-US currencies, the yen has become the biggest anomaly this week, the Japanese authorities are suspected of multiple interventions, including on Wednesday, the dollar against the yen short sharp fall from 157.8 to near 155, and then back above 156, showing that the intervention mainly suppress the rhythm of fluctuations. The euro was driven by the dollar’s retreat, maintaining oscillations above 1.17.