The EUR/USD currency pair retreated to a more than seven month low, although it pared most of its losses by Friday, amid ongoing demand for “King dollar”.
The British pound sank to a fresh three month low after worse than expected GDP data, triggering fears that rising energy costs could push the UK into a recession in the coming months.
The USD/JPY rose to its highest level since July 2024 amid concerns that the Japanese government might be forced to intervene on the currency markets to defend a weak Yen.
Gold prices were little changed last week as the escalating Middle East conflict worried markets that inflation could rise. Higher inflation could delay Fed interest rate cuts until later in the year.
US S&P 500 stocks ended the week slightly higher but the ongoing US Iran war remains a major concern for traders and continues to cause great volatility.
Oil prices surged to their highest levels since October 2023 after Iran closed the Strait of Hormuz and investors worried about a longer lasting supply shock.