Topic: Weekly FX Report

US-Mexico-Canada talks ease tensions but US tariffs on China and Beijing’s retaliation create uncertainty. Mixed US data boosts safe-haven demand, while the BoE cuts rates and lowers GDP forecast. The French government survives a no-confidence vote and global equities rise despite risks.

Fed holds rates. The Federal Reserve kept rates steady at 4.25%-4.50%, aligning with expectations.

Trump’s trade policies create ripples of market uncertainty, while robust PMI data from Europe bolsters the euro and pound, driving investor optimism.

Markets were volatile this week, driven by mixed macro data and dovish Fed comments. Softer U.S. inflation eased reflation concerns, while Fed Governor Waller’s remarks hinted at potential 2025 rate cuts, Focus now shifts to next week’s PCE report.

Global bond yields rise as inflation and debt concerns grow. UK gilts hit multi-decade highs, pressuring the pound, while the US dollar strengthens on solid data and Fed signals.

US equities face their second-worst week of 2024 as rising Treasury yields and Fed inflation concerns weigh on markets, boosting the US dollar.