The Eurodollar fell last week after the US Fed decided to keep rates at 5.5%, as expected. Positive US data late in the week supported the greenback against most of its rivals.
The British pound dollar pair declined after interest rates remained unchanged. But the bank of England signalled that rate cuts are possible in its forthcoming meetings, due to falling inflation.
The USD/Yen continued to rise to hit a four month high after the Bank of Japan ended its negative interest rate policy. Interest rates were increased by 10 basis points, the first rise in 17 years.
Gold prices jumped to hit an all time high after Fed Chair Jerome Powell kept rates at 5.5%. Expectations of a rate cut in June increased following Powell’s statement. On Friday an attack in Moscow in a concert hall, claimed by ISIS, increased global tensions.
Stock indexes hit all time highs after the Fed meeting. Tech stocks outperformed their peers, but Apple is facing regulatory problems in the US and EU. Both jurisdictions launched antitrust cases against Apple due to what they say are the company’s attempts to stifle competition.
Oil prices edged upwards after registering a four month peak at the beginning of the week. Ukraine continued to hit Russian oil refineries, which represents around 11% of total capacity taken offline, according to Bloomberg.