The Eurodollar climbed to hit a more than one month high amid relief that President Trump’s position on tariffs appeared be softer than previous statements suggested.
The British pound moved sharply higher as the dollar weakened, driven by easing concerns over potential US inflation.
The USD/JPY increased after the Bank of Japan increased interest rates by 25 basis points to 0.5%, but signaled that further hikes in the near future are unlikely.
Gold prices rose to an almost three month high and traded close to an all time peak. Prices were supported by a falling dollar, as expectations grew that the Fed may be able to cut interest rates twice this year, despite lingering inflation.
Stock prices increased in the week of President Trump’s inauguration as he outlined that corporate tax cuts and cuts in regulation will take place. In the earnings season, Netflix posted blockbuster earnings, sending the stock sharply higher.
Crude oil prices fell to a two week low after President Trump declared a national energy emergency and vowed to increase US oil production. Trump also called upon OPEC to increase oil production to push oil prices lower.