The Eurodollar declined again last week, following an in line with expectations Eurozone inflation reading of 2.4%. ECB President Lagarde stated that the Eurozone economy is showing signs of recovery.
The British pound dollar pair fell to a five month low by Friday’s close of business. The International Monetary Fund downgraded its UK growth forecasts for the second time this year, amid continued worries over the UK economy.
The USD/JPY increased and recorded a multi-year peak as the greenback continued its push higher against its rivals. The Bank of Japan has not intervened, despite earlier government statements that it may do so to support the Yen.
Gold prices climbed to record a one week high after Israel launched limited military strikes against Iran. Traders are awaiting Iran’s reaction, after the country vowed to respond to any military attack against it.
Stock indexes continued to fall amid market pessimism over lingering inflation in the US economy. Netflix announced better than expected earnings results. Tesla, Microsoft, Google and Amazon will post their results this week.
Oil prices decreased last week, as traders absorbed the potential for further escalation in the Middle East. US inventories data in the US rose for the fourth week in a row, suggesting declining oil demand in the US.