Last week’s recap
The US Dollar rallied last week, driven by heightened Middle East tensions and robust September jobs data signalling a strengthening labour market. Global equities also surged, mirroring positive employment date in the USA.
The greenback surged last week, with the Dollar Index (DXY) reaching an 8-week high. Investors interpreted recent data as indicating a potential "soft landing" for the US economy, suggesting the Federal Reserve could successfully lower inflation without causing a recession.
The biggest loser
Gold prices declined last week, pressured by a strengthening US Dollar. The negative correlation between gold and the dollar was exacerbated by strong economic data, which highlighted sharp improvement in jobs and wages growth. This reduced expectations for interest rate cuts by 50 bps in the Fed’s November meeting and boosted the greenback.
The biggest winner
Oil was the biggest winner last week making the best use of ME escalating tensions and other factors related to supply and demand dynamic in the market. US oil and Brent futures gained 8.50% and 4.00% respectively.
?
?
?
?