FOREX: Week in Review- October 24, 2011

By: Dr. Mike Campbell

Last week was a mixed affair for the world’s markets. Markets have been volatile whilst waiting for firm news on European action to resolve the sovereign debt crisis, floating higher on positive sentiment only to retrench when contrarian views are given. In Europe over the course of the week, the FTSE made 1% and closed at 5489; the Dax was essentially unchanged at 5971, making 0.1%; the CAC slipped by 1.5% to end the session at 3171.

The Dow ended the week up by 2.1% at 11808.9. The Nasdaq composite index ended the week at 2637.5 slipping 1.1% over the week.

The Nikkei closed down over the course of the week, falling 1.8% to end the trading session at 8679.

Currency Markets Review

On the currency markets last week, Sterling had the best of the trading. The Dollar was weaker against Sterling, falling 0.75% and closing at 1.59009 to the Pound. The Greenback strengthened marginally against the Euro last week, making 0.07% to close at 1.3798. The Dollar lost ground against the Japanese currency, closing at 76.6923 to the Yen, a loss of 0.51% on the week.

The Euro closed down against the Yen ending at 105.82, falling 0.56% over the course of the week. The Euro also was down against Sterling over the course of the week by 0.81%; the close saw one £ buying 1.15241.

Commodities Market Review

On the commodities market, the price for Brent crude ended lower, closing at $109.56 per barrel (for December delivery); a fall of 4.5% over the course of the week’s trading. The value of gold dipped last week, closing at $1642.5 per ounce, representing a fall of 2.1% over last week’s value.