The Eurodollar decreased last week. Lower than expected French and Italian inflation data and a surprise interest rate cut from the Swiss national bank, suggests an ECB rate cut in June is more likely. Positive US GDP data also provided support to the US dollar.
The British pound dollar pair edged higher after the Office of National Statistics confirmed that the UK economy slipped into recession last year.
The USD/Yen finished the week slightly higher after recording a fresh four month peak. The bank of Japan, which recently raised interest rates, stated it will take a cautious approach to further hikes.
Gold prices continued to climb and hit another record high on Thursday. The uptick followed the breakdown of Israeli-Hamas ceasefire talks in the Middle East and increased gold buying by global central banks.
Stocks were mixed last week as the tech heavy S&P100 pulled back slightly, while the broader S&P500 increased in an Easter holiday-shortened trading week.
Oil prices rose to an almost five month high on Thursday. Strong economic data from the US, suggests that demand for crude oil may continue to increase from the world’s largest oil consumer. Traders are also looking ahead to this week’s OPEC Joint Ministerial meeting.