Forex Investment and Currency Trading

The much-awaited July US non-farm payroll data came in better than expected, boosting investor confidence. USD/JPY was the best performer in G10 space last week, driven mainly by higher US interest rates and equity prices. The risky/cyclical currencies went higher in general on the back of improved sentiment, including the GBP, which appreciated against EUR despite the interest rate move against it following the BoE’s surprise announcement to expand the asset purchase program. The CAD was an exception in this risk rally and fell against USD, some financial fair value (FFV) model predicted slight appreciation due mainly to higher commodity prices.