The Eurodollar increased to hit a near four week high amid lingering uncertainty about the ECB’s next moves. Optimism on easing geopolitical tensions provided support to riskier assets.
The British pound declined on mixed signals from Fed Chair Powell who highlighted concerns over the US labor market, but kept the door open to a potential rate cut in September.
The USD/JPY edged higher with safe haven demand for the yen fading after a volatile start to the week, amid an increasing risk appetite.
Gold prices climbed to a ten day high on a weaker dollar amid growing optimism on a potential September rate cut, although mixed comments from Fed Chair Powell dampened expectations by Friday’s close.
U.S. stocks finished in the green after a strong performance on Friday, amid hopes of further rate cuts this year following Fed Chair Powell’s speech at Jackson Hole. The S&P 500 index remains close to all- time highs ahead of Wednesday’s NVIDIA earnings results.
Oil prices rose to a two week high supported by a weaker dollar, signs of declining Russian oil exports and easing trade tensions.