The Eurodollar opened the week by jumping to a seven month high. German inflation data came in on target, in a week light on economic data.
The British pound declined to a fresh one-month low after countries like Sweden, India and Australia warned their citizens not to travel to the UK due to migration riots taking place in a number of cities.
The USD/JPY hit its lowest level so far this year on Monday, but finished higher by Friday, close of business. This followed a midweek statement from a bank of Japan official saying rates would not be raised while markets are unstable.
Gold prices hit a ten day low before paring most losses by Friday’s close. In the Middle East several countries have urged Iran to reconsider its plans to strike Israel.
Stock index prices edged lower on brightening sentiment after Thursday’s US Initial Jobless Claims data appeared to pare most of the week’s losses.
Crude oil prices climbed around 4% as US recession fears eased. The market focus remains the Middle East, as the potential for a wider war that could disrupt production, still looms over the market.