Topic: Weekly FX Report

Sticky US inflation and renewed Fed hawkishness pushed the dollar to fresh one-year highs this week. We assess the implications for major currencies, key macro trends, and what next week’s UK and global data could mean for FX markets.

Markets reeled from an AI-driven tech selloff and a Democratic election sweep, while central banks continued tightening. With the dollar caught between growth resilience and softer rate expectations, attention now turns to US inflation.

Markets were driven by central banks, tech earnings and election risks this week. The Fed held rates, the RBNZ surprised with a pause, AI concerns rattled equities and attention now turns to US midterms, jobs data and the BoE.

Global MacroGrowth stabilizes as inflation remains uneven China growth improves. China’s economy expanded 4.5% y/y in Q3, above the 4.4% forecast and up from 4.3% in Q2. September industrial production accelerated to 5.5%, while retail sales rose 1.1% vs 0.5% expected.

AI doubts rattled markets, bonds regained their safe-haven appeal, and hotter US inflation failed to derail the rally. As growth signals diverge and the dollar consolidates near recent highs, investors turn to next week’s key PMI and inflation data.

Markets are navigating a tricky mix of higher oil prices, a stronger dollar, French fiscal concerns and hawkish Fed signals. We unpack what’s driving currencies, bond markets and risk sentiment ahead of key US inflation data.