The euro strengthened against the dollar last week. Hopes for an accelerated vaccination campaign in Germany, France and Italy and early signs that the campaign is (slowly) speeding up provided support to the euro. The EU plans to have the majority of Europeans vaccinated by this summer.
The British pound slightly weakened against the dollar. On one hand, the British currency benefited on Monday from a gradual reopening of restaurants, bar, gyms etc. while on the other, the UK GDP figures disappointed on Tuesday by contracting more than expected in the last reporting month.
The Japanese yen strengthened last week after US bond yields dropped further from previous highs. Overall, the dollar index dropped further but consolidated around 92 points.
This helped the gold price recover and the precious metal traded again above the $1,700 level trading in the $1,730 - $1,750 channel.
The Dow Jones and S&P 500 indexes are consolidating all-time high levels, while the Nasdaq came close to an all-time high reached in mid-February. US inflation figures for March showed that critical levels have not yet been reached. This reassured investors that the Fed will keep its interest rate at its current low levels for the foreseeable future.
Oil prices were little changed last week trending slightly upwards. Yemen’s Iran-aligned Houthi movement fired 17 drones and two ballistic missiles at targets in Saudi Arabia, including Saudi Aramco facilities. The Chinese economy and oil consumption are strong. On the other hand, coronavirus infections continue rising in Europe, Brazil, and India, prompting fears of a slow recovery in demand. Vaccination is still lagging in Europe but is gaining traction.