The Eurodollar increased slightly but recorded a more than two month high on Wednesday as the dollar continued to soften against its peers.
The British pound pushed sharply higher to its highest level in two and a half years. The move followed the Bank of England’s decision to keep interest rates at 5% on September 18th.
The USD/JPY traded lower after falling sharply on Friday. The yen dropped after the Liberal Democratic Party won the first round of the Japanese election. The party is led by Shigeru Ishiba, an interest rate hawk.
Gold prices spent another week rising and recorded another record high on Thursday. As fears of a potential wider war in the Middle East grew, so did expectations that the Fed may opt for another 50 basis point cut in November.
Stock index prices climbed last week and the S&P 500 hit another all time high. News that China intends to stimulate its economy to boost growth, underpinned the rise in global stocks.
Crude oil prices pulled back to a two week low after reports suggested that OPEC at its Joint Ministerial Meeting next week intends to stick to the agreement to unwind production cuts in December.