FX Weekly Report (13-07-12) Risk sentiments remain squarely on the back foot (page 2 of 2)

And Down Under, the Aussie Dollar was weighed down earlier in the week on deteriorating employment data which showed that -27.0K jobs were lost during June, taking the unemployment rate up to 5.2%, from 5.1% previously. Coupled with weaker Chinese numbers, AUDUSD dropped to an intraweek low of 1.0139 levels before staging a recovery on Friday to close the week above 1.022.






And finally, in a week which seemed to be void of any European market moving developments (or another EU Summit for that matter), the EURUSD continued to weaken on deteriorating risk sentiment and a stronger US Dollar. Following the previous weeks close below 1.23 levels, EURUSD snapped through 1.22 levels to post a two-year of 1.2166. However Friday's boost in risk appetite saw the pair close above 1.22 - a refreshing close for technical analysts eyeing an upward move in the cross. The Sterling also had a strong closing on the week, boosted by improving appetite on the earlier announcement that UK lenders would have improved liquidity access from the BOE which was well received by the markets.






The trading week ahead promises to bring more volatility to the markets as Fed Chairman Ben Bernanke delivers his semiannual report to the US Congress on Tuesday and Wednesday. Although we don't expect Bernanke to spring any surprises following the release of the FOMC minutes, markets are sure to remain volatile during his testimony. The Bank of England and the Reserve Bank of Australia are set to release their meeting minutes and also on the calendar are the inflation readings from the Euro-zone, the UK and the US.