The Eurodollar edged downwards and recorded an almost one month low. The European Central Bank cut interest rates by 25 basis points in a week packed with US data releases.
The British pound traded slightly lower as all eyes turned to US inflation data last week. In the UK GDP data was below expectations, implying that interest rate cuts might be necessary sooner rather than later.
The USD/JPY continued its decline and fell to its lowest level so far this year after Japanese GDP was revised lower. However, the Bank of Japan is expected to increase rates at least once more this year.
Gold prices traded sharply higher and soared to an all time high on Friday. The jump in gold prices came after US CPI inflation was in line with expectations at 2.5%, as expectations grew that the Fed might opt for a sharper 50 basis cut in rates this week.
Stock index prices pushed sharply higher as sentiment improved in the broader market. NVIDIA and other chip stocks jumped in value after the US was reportedly close to allowing the company to export its latest AI chips to Saudi Arabia.
In a volatile week, Crude oil’s price fell to its lowest level in over a year, before recovering to finish higher. Hurricane Francine in the US Gulf saw some 800,000 barrels per day temporarily taken out of production.