The EUR/USD was slightly higher after the Fed met and decided to cut interest rates, and signaled that another two cuts are expected to take place before the end of the year.
The GBP/USD declined as the Fed rate cut was offset by resilient US retail sales, which saw the dollar rise towards the end of the week. In the UK Bank of England minutes suggested that rate cuts could be on hold for now. Ongoing worries about UK fiscal credibility are also pressuring Sterling.
The USD/JPY climbed to a ten-day high after the Bank of Japan kept rates at 0.5% and appeared to suggest that rates could not rise until next year. Stronger US data towards the end of the week also supported the greenback.
Gold prices surged to yet another record peak amid expectations of Fed rate cuts and increasing geopolitical risks. A series of reports of Russian drones breaching NATO countries' airspace saw safe-haven demand increase.
US S&P 500 and Nasdaq tech stock prices hit all-time highs after the US administration stated that a “very productive” call was held between Presidents Trump and Xi. The presidents of the US and China agreed to meet at the upcoming APEC meeting on October 31 – November 1st.
Oil prices inched lower, despite a large drop in US inventories, signaling an increase in demand for oil over the previous week. But a firmer dollar and concerns about global demand offset the positivity. Additionally, increased OPEC output will begin from October.