The Eurodollar fell sharply to an almost two month low after ECB Head Christine Lagarde hinted that the bank may cut interest rates at its meeting this month.
The British pound declined following a statement from the Chair of the Bank of England Andrew Bailey suggesting that if inflation remains under control, more aggressive interest rate cuts are possible.
The USD/JPY climbed after new Japanese Prime Minister Ishiba stated this week that the economy was not ready for further interest rate hikes. This puts the government at loggerheads with current Bank of Japan policy.
Gold prices edged lower despite an increasingly possibility of a wider Middle East conflict after Iran attacked Israel. Israel said it would respond in the coming days. On Monday Fed Chair Powell tempered expectations of a possible 50 basis point interest rate cut in November.
Stock index prices inched lower in a turbulent week in which traders worried about the global impact of a wider war in the Middle East.
Crude oil prices surged to their highest in five weeks, marking their strongest weekly gains in a year. This increase was driven by fears that Israeli strikes might target Iranian oil ports and production sites. Iran issued threats to retaliate by hitting Saudi oil facilities if their own were attacked.