The Eurodollar traded slightly lower reflecting fading US dollar weakness following Fed Chair Powell speech at Jackson Hole. Firmer European data reduced the chances of an ECB rate cut in September.
The British pound closed slightly lower after hitting a two week low last week. Fiscal concerns continued to weigh on the pound amid mixed data and cautious commentary from Bank of England officials on future rate cuts.
The USD/JPY inched lower amid further signs that US interest rates may be cut. Better Japanese economic data last week provided some support to the yen.
Gold prices surged amid concerns over political pressure being placed on the Fed, potentially threatening its independence. Economic data reinforced market expectations that the Fed is likely to opt for a cut in September.
US S&P 500 stocks surged to an all time high as Nvidia posted better than expected earnings. However, stocks finished the week slightly lower as in market participants locked in profits.
Oil prices climbed to a multi week high amid further news of falling Russian oil output due to Ukrainian attacks on refineries, the Druzba pipeline and falling US inventories. Gains were trimmed later in the week as markets looked ahead to likely production increases at next week’s OPEC+ meeting.