The euro dollar currency pair climbed to a five month high last week. Fed Chair Powell’s speech on Wednesday was seen as a signal to the markets that the Fed is considering slowing interest rate hikes.
The British pound rose against the dollar as the greenback continued to weaken against most of its peers.
The USD/Yen pair fell sharply over the week, hitting a three-month low. North Korea again launched missiles close to South Korea increasing tensions in the region.
Gold prices pushed to a four month high on optimism for a reduced pace of interest rate increases. The precious metal continues to be supported after protests erupted in China over its Covid policies amid other multiple risk factors such as the war in Ukraine.
US stocks climbed as traders grew in optimism that the United States may have a so called soft landing following its economic downturn. Economic data from the US suggests that the economy remains robust despite the short term outlook.
Oil prices jumped to hit two week highs as expectations grew that OPEC might decide to make additional cuts in output on December 4th. News that China may relax its Covid policies, alongside the EU embargo on Russian oil, due to begin on December 5th, supported higher oil prices.