By: Dr. Mike Campbell

FOREX: The Last Week’s Trading Activities In Perspective

Friday marked the final trading session for the week, the month the quarter and the year for 2011. In this summary, we’ll see how things stand compared to 2010.

In Europe over the course of the week, the FTSE climbed by 1.1% and closed at 5572.3; it made 0.36% over the month, 8.7% on the quarter, but fell by 7.4% over the course of the year; the Dax ended the week at 5898.4, making 0.33% over the week, it fell 3% over the month, gained 7.2% on the quarter but lost 15.5% over 2011; the CAC gained 1.9% to end the session at 3159.8, it lost 0.16% over the month, climbed 6% over the quarter, but it fell by 19% over the year.

The Dow ended the week lower to the tune of 0.62% at 12217.6; it made 1.7% in December and 12% over the quarter and ended the year up by 4.5% - the only major index to show growth over the year. The Nasdaq composite index ended the week at 2605.2 slipping by 0.52% over the course of the week, it fell 0.83% during December, but put on 7.9% in Q4, nevertheless, it lost 3.9% over the year.

The Nikkei closed up over the course of the week’s trading, making 0.72% to end the trading session at 8455.4, but it lost 2.2% in December and 2.8% over the quarter with the index falling by 19.7% over the year.

2011 could best be described as a turbulent year on Forex markets. Here is how things played out on a broader canvas.

On the currency markets last week, the Yen saw the best of trading. The Dollar was stronger against Sterling, gaining 1.2% and closing at 1.54902 to the Pound; it rose 1.4% in December, made 0.58% over Q4 and gained 0.43% on the year. The Greenback strengthened against the Euro last week making 0.90% to close at 1.2939, it gained 4.2% in December and 4.2% over the quarter, but it ended the year largely unchanged, having gained only 0.03%. The Dollar lost ground against the Japanese currency closing at 77.4403 to the Yen, a fall of 0. 80% on the week; over the month, it slid by 0.59%, but recovered by 0.75% over the quarter. However, the Yen strengthened by 6.8% against the Dollar over the course of 2011.

The Euro down up against the Yen ending at 100.2 falling 1.7% over the course of the week, it shed 4.8% over the month and 3.5% over the quarter. Over 2011, the Euro weakened by 6.8% against the Yen. The Euro was stronger against Sterling over the course of the week by 0.26%; the close saw one £ buying 1.19717, it fell by 3% in December, by 3.75% over the quarter, but appreciated by 0.4% over the year.

On the commodities market, the price for Brent crude ended lower, closing at $107.4 per barrel (for February delivery); a fall of 0.54% over the course of the week’s trading, it fell by 2.3% over the month, but rose by 4.5% on the quarter. Over the course of the year, oil prices rose by 13.6%. The value of gold fell back last week, closing at $1574.5 per ounce, representing a fall of 2% over last week’s value. Gold prices retreated by 9.9% during December and by 2.8% in Q4, but it made 14.3% over the course of the year.