#OPINIONLEADER#MARKETS VIEW AHEAD OF THE NEW WEEK

Markets were relatively quiet this past trading week, though there were some bouts of volatility. Major stock indices continued to oscillate higher with the Dow Jones, Nasdaq, and S&P 500 each gaining about 1% on balance and notching new all-time highs. Arguably most eye-catching was the ASX 200, however, given its 6% rally on the week. This came on the heels of some stabilization in recent selling pressure across neighboring Chinese equities. And while the latest RBA decision revealed that the central bank intends to forge ahead with taper plans, confidence in medium-term outlook seemed to spur investor risk appetite.

The Bank of England gave its own monetary policy update that struck a similarly hawkish tone. In fact, the BoE announced a reduction to its policy interest rate threshold for further unwinding its balance sheet. This helped fuel Pound Sterling strength against most FX peers like the Euro, Yen, and US Dollar. GBP price action surrendered gains to its US Dollar counterpart later in the week, though, as markets reacted to solid nonfarm payrolls data. In fact, the broader US Dollar Index ended up recording its biggest weekly gain since the June Fed meeting that was accompanied by hawkish dot plot projections.