The euro climbed after the dollar fell sharply against a basket of other currencies. Lower than predicted US Consumer CPI figures last week have increased expectations that the Fed’s rate hike in December will be 50 basis points.
The British gained against the dollar after bank of England officials reaffirmed their determination to bring inflation down. UK GDP figures were mixed last week, but showed that the UK economy remains in recession.
The USD/Yen traded firmly lower by the end of the week after the Japanese central bank vowed to stick to its plan of monetary easing.
Gold prices jumped close to six week highs as bond yields and the dollar moved lower. Geopolitical disagreement between global powers caused by the war in Ukraine and tensions over Taiwan continue to support the safe haven asset.
US stocks pushed higher and had their best week since June after CPI Inflation came in lower, suggesting that the worst for the US economy may be over. Traders are excited that the US economy may return to growth next year.
Oil prices fell on continued restrictions in China following a rise in Covid cases and negative inventories figures in the US.