The Eurodollar saw huge volatility last week as the pair tested another five-month high. The peak followed President Trump’s liberation day tariff announcement, which triggered a loss of confidence in the US dollar.
The British pound fell after the volatile pair hit a five-month high on stronger-than-expected UK data, but ended the week at a one month low as the greenback recovered slightly against its rivals.
The USD/JPY declined to its lowest level since early October. Safe-haven flows supported the yen, while a softer dollar fell on fears of slowing US growth.
Gold prices declined, but only after hitting a fresh all-time high on Wednesday due to trade war fears. The safe-haven metal pulled back after traders locked in profits.
U.S. stock markets sank nearly 10% as traders grew concerned about a potential recession after the US and then China imposed tariffs on each other, as the trade war escalated. Tech stocks took a hammering ahead of the earnings season, which kicks off next week.
Crude oil prices slipped to a four-year low after JP Morgan investment bank signaled a current 60% chance of a US recession in 2025. Traders are concerned that the possibility of a recession could reduce oil demand.