The euro climbed slightly after spending much of the week lower following the Fed interest rate decision to hike rates from 3.25% to 4%. On Friday, Fed officials suggested that the interest rate decision in December may still be less than the expected 75 basis points.
The British pound fell after Thursday’s Bank of England decision to hike rates by 75 basis points. But traders were alarmed by the bank’s warning that the UK is expected to fall into its longest recession in 100 years.
The USD/Yen traded lower by the end of the week after the dollar fell against a basket of other currencies.
Gold prices jumped close to a one month high as tensions in Asia and the Middle East caused investors to consider the safe haven asset. Fed officials on Friday suggesting a potential lower hike in December also supported the precious metal.
US stocks fell after the major global central banks hiked interest rates as investors remain concerned at the potential depth of the recession. News from China also caused volatility with stocks receiving support on reports that China might relax its Covid restrictions, only for this to be denied by Chinese officials at the weekend.
Oil prices continued to rise on positive inventories figures, suggesting that demand is rising in the US again. Traders are also pricing in the EU decision to reduce imports of Crude oil by 90% by the beginning of December.