Topic: Weekly FX Report

Bond market worries drive FX.

Markets are looking to Jackson Hole for clues on the Fed’s next move as oil prices fall, inflation stays sticky, and trade tensions simmer. We break down the latest macro developments, FX trends, and what’s driving markets now.

Treasury buy-backs briefly eased bond-market stress, but fading impact, rising debt concerns and a weaker dollar revived questions over US fiscal credibility.

Markets stay in risk-on mode despite Middle East tensions and volatile energy prices. Softer US inflation has eased Fed pressure, supporting carry trades, while the dollar remains rangebound and investors focus on upcoming UK data.

Markets turned risk-on as hopes for a Hormuz shipping breakthrough eased oil supply fears. Weaker US payrolls tempered Fed hike expectations, while resilient growth signals, record equities, and dollar uncertainty kept FX markets on edge.

Markets delivered no shortage of drama this week: tentative Gaza deal hopes, a tech-led rebound, sharp yen swings, mixed central bank signals and a stronger euro kept investors navigating volatile global currency and equity markets.