The euro climbed against the dollar against last week, hitting a six month high. Expectations are growing that the European Central Bank will continue hiking interest rates for a longer period, while confidence is increasing that the EU will avoid restrictions and an energy crisis this winter.
The British pound edged upwards against the dollar. Strikes in the United Kingdom among health care railway workers underlined the negative economic outlook in the country and limited the upside for sterling.
The USD/Yen pair fell and hit a six month low after the yen continued to receive safe haven support amid rising tensions in the Korean peninsula.
Gold prices continued to press higher to record multi month highs despite lighter Christmas week trading. A weaker dollar has supported the precious metal while Gold continues to benefit from global geopolitical tensions.
US stocks continued their decline last week with tech stocks being particularly badly hit. This week traders will be hoping that Fed meeting minutes and NFP figures will improve sentiment among trades.
Oil prices jumped to three week highs and finished the week higher. The markets continued to welcome the end of China’s zero tolerance policy. Oil was supported by news that President Putin would ban oil exports to countries that place a price cap on Russian oil.