The euro declined against the dollar last week after higher than expected US CPI inflation and other key US economic data dominated market sentiment. The figures implied that interest rates would continue to rise in the coming months.
The British pound traded lower after higher US Retail Sales figures and Producer Price Index statistics later in the week confirmed that the US economy is still overheated.
The USD/Yen pair moved sharply higher after the Bank of Japan showed no sign of change to its ultra-easy interest rate policy.
Gold prices hit six week lows after higher US inflation data. Both Goldman Sachs and the Bank of America are now forecasting 3 more interest rate increases of 25 basis points this year. Gold prices are being pressured by the prospect of higher rates.
US stocks fell last week as traders continue to worry about the prospect of rising rates which could cause another economic slowdown. The earnings season meanwhile is drawing to a close with 69% of companies beating earnings expectations so far.
Oil prices fell to a ten day low after Crude oil inventories filled up to their highest levels since June 2021. However, the International Energy Agency monthly report stated that oil demand will rise by 2 million barrels per day in 2023 compared to last year.