The EUR/USD dropped to a four month low as the US government shutdown dragged on, although some losses were reduced on Friday after renewed trade fears boosted the safe haven greenback.
The British pound fell sharply after UK data came in weaker than expected, suggesting UK growth is slowing quickly, raising expectations of a Bank of England rate cut early next year.
The USD/JPY rose to a near eight month high as the yen was pressured by the cautious stance on rate hikes from Japan’s likely next Prime Minister, Takaichi of Japan. She is set to be inaugurated on October 15th.
Gold prices surged above the psychological $4000 dollars for the first time driven by safe haven demand amid uncertainty over the US government shutdown.
US S&P 500 stocks turned lower as stock prices sank on Friday after President Trump threatened “massive” tariffs on China over control of rare earth minerals, rekindling fears of a damaging trade conflict.
Oil prices closed sharply lower for the second consecutive week, below $60. A first phase peace deal between Israel and Hamas was signed, reducing the chances of supply disruptions. However, Friday’s Trade tensions pushed prices further down.