The EUR/USD edged higher this week as Eurozone Services Purchasing Managers Index (PMI) data came in stronger than expected, supporting the Euro, while the market continues to price in a slower pace of ECB rate hikes.
The GBP/USD climbed slightly after the Bank of England kept its interest rate unchanged at 4.00%, easing some concerns over the slowing economy ahead of the Autumn Budget.
The USD/JPY remained near its recent highs, supported by stronger US employment data, while traders continue to debate whether the Fed will pause or cut rates in the coming months.
Gold prices rebounded from recent lows, supported by safe-haven demand amid the US government shutdown and ongoing geopolitical tensions.
US equity markets posted modest gains, supported by a rebound in technology and AI-related stocks, as investors assessed the impact of the ongoing US government shutdown and rising geopolitical tensions, while optimism grew ahead of the holiday shopping season.
Crude oil prices slipped slightly during the week, as stable supply expectations outweighed support from rising geopolitical tensions, including drone attacks on Russia’s Lukoil facilities and renewed friction between the United States and Venezuela.