Silver
Silver has been active all week as we initially plunged to reach the 50-week EMA at the $64 region, only to turn around and bounce despite the fact that there was a lot of ugliness during the non-farm payroll announcement on Friday, which suggested that inflation isn't going anywhere.
The fact that silver could fly in the face of a jobs report that was almost triple expected suggests that there is real buying pressure underneath here now.
Gold
Gold markets looked very much the same as they had initially plunged but then turned around to show signs of life again.
Ultimately, this is a market that will more likely than not continue to see a lot of volatility, but it certainly has recovered quite nicely at the end of the week. And this suggests that perhaps there is more fight in the uptrend than once thought. The $4,500 level seems to be a bit of a fulcrum for price now. If we can clear that decisively to the upside, it could lead to good things.
Overall, this is a market that seems to be willing to look past some of the interest rate headwinds at the moment, as I think part of the interest rate problem is basically the bond market complaining about debt, not only debt in the United States, but everywhere else as well.
EUR/USD
The euro has been slightly positive during the week. It's been choppy as the ECB is expected to raise interest rates by 25 basis points. And at the same time, the Federal Reserve could very well be doing the same thing. Ultimately, this is a market that I think will end up being one that will reach the 1,17 level very closely.
It's an area that's been important multiple times. We'll see how this plays out right now. Cautiously bullish now, but I am not overly convinced quite yet on the Euro rallying significantly.
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GBP/USD
The British pound has been all over the place during the week as traders continue to fight the Fed here.
The Bank of England is tight. It has a higher interest rate than the United States. So, the idea of this bouncing isn't really a stunning conclusion to me, although there might be some questions about energy in the United Kingdom later this year.
NASDAQ 100
The NASDAQ 100 continues to be rather resilient, initially falling during the week, but turning around to show signs of life. With this, I think you have a situation where traders will be looking at this as a buy-the-dip market.
That makes a certain amount of sense because the momentum is most certainly with you in that environment. The NASDAQ continues to move to the upside and has shown real resiliency.
USD/MXN
The US dollar has fallen against the Mexican peso during the trading week, and as a result, it looks like traders are willing to get involved to the downside.
The question, of course, is how much further do we have to go? The 16.50 level will be a major support level if we get that far. Right now, it looks like we are still favoring the downside in general, and I see nothing changing here now.
AUD/USD
The Australian dollar has been bullish for the week, and with a hawkish RBA in Australia, that's probably not a huge surprise. Interest rates in America are still higher, but it looks like people are trying to price the Federal Reserve into the idea of cutting rates going forward.
The Aussie could be an interesting currency against other lower-yielding currencies such as the Swiss franc.
USD/JPY
The US dollar has plunged against the Japanese yen for the week, although it is bouncing a little bit from the lows.
Whether or not it can do anything serious from here remains to be seen, but it looks like the one point, or the one 155¥ level remains important and as long as we stay above there I think a bounce is possible the interest rate differential most certainly favors the US dollar but people are starting to think about the possibility of higher interest rates in Japan the reality is they don't have that much wiggle room.
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