Despite a shaky start, the Greenback managed to bounce back and close the week with strong gains, supported by a modest increase in US yields. The ECB’s dovish stance and UK’s inflation data also played a role in shaping the market sentiment.
Looking ahead, key economic indicators such as the Chicago Fed National Activity Index, Existing Home Sales, Mortgage Applications, Goods Trade Balance, and PMI data will be released next week, providing insight into the health of the US economy.
EUR/USD and GBP/USD Show Mixed Performance
EUR/USD saw a slight decline after hitting highs above 1.0900, while GBP/USD struggled to maintain momentum above 1.3000. Economic data releases from Germany and the UK will be closely watched next week to gauge the strength of the Eurozone and UK economies.
USD/JPY and AUD/USD Face Headwinds
USD/JPY continued its downward trend due to FX intervention by the MoF/BoJ, while AUD/USD retreated from recent highs and broke below the 0.6700 level. PMI data from Japan and Australia will be key factors to watch next week.
Upcoming Economic Events and Central Bank Meetings
Key speeches from Fed and ECB officials, as well as upcoming meetings from the Hungarian central bank, Bank of Canada, and CBRT, will shape market expectations and influence monetary policies in the coming week.
Analysis and Summary
In summary, the US Dollar Index showed resilience and closed the week with gains, while EUR/USD and GBP/USD faced mixed performance. USD/JPY and AUD/USD experienced downward pressure due to external factors. Looking ahead, economic data releases and central bank meetings will provide further insight into market trends and potential policy changes. It is important for investors to stay informed and monitor these developments to make well-informed decisions regarding their finances.