The US Dollar Index saw a significant upward trend at the beginning of the week, fueled by trade agreements between the US and the EU, strong US economic data, and hawkish interpretations of Federal Reserve Chairman's statements. However, the dollar's strength waned at the end of the week due to weaker-than-expected non-farm payroll data, leading to a market repricing of rate cut expectations. The dollar closed the week at 98.66, up 1.03%.
Gold was initially negatively impacted by the dollar's strength, falling below the $3270 level. However, it rebounded strongly after the release of the non-farm payroll data, closing the week at $3363 per ounce, up 0.79%.
Non-dollar currencies faced pressure due to the dollar's strength, with the British pound and Australian dollar recording consecutive declines. However, these currencies rebounded at the end of the week as the dollar weakened.
Oil prices rose this week, supported by hopes of a ceasefire between Russia and Ukraine and easing global trade tensions. However, prices retreated at the end of the week after reports of a potential increase in OPEC+ production.
US stock markets saw a slowdown in gains, driven by escalating trade tensions fueled by Trump. The Dow Jones Industrial Average recorded its worst weekly performance since April. However, some individual stocks saw significant gains, such as Microsoft, Meta, and Figma.
President Trump criticized the Federal Reserve for not cutting interest rates. Additional criticism came from board members. These events have sparked speculation about the central bank's independence and the influence of politics on its decisions.
Non-farm payroll data showed a significant slowdown in job growth, leading to increased expectations that the Federal Reserve will cut interest rates in the coming months. Trump responded to this data by accusing the Bureau of Labor Statistics of manipulating the data.
President Trump announced retaliatory tariffs on multiple countries, raising concerns about a global trade war and its impact on economic growth. These actions highlight the continued uncertainty in global trade relations.
Trump's decision to exclude refined copper from tariffs caused copper prices to plunge, highlighting the impact of sudden policy decisions on commodity markets.
The worsening humanitarian crisis in Gaza has led to international intervention and calls for more aid.
President Trump set a deadline for a ceasefire between Russia and Ukraine and threatened new sanctions on Russia.
Nvidia denied the presence of any backdoors in its chips after concerns were raised by the Chinese government.
The US imposed its largest sanctions package on Iran in 7 years, targeting oil and shipping networks.
The Bank of Japan kept interest rates unchanged, but raised inflation forecasts.
Ray Dalio completed his exit from Bridgewater Associates, with Brunei's sovereign wealth fund becoming a major shareholder.
The White House released a report on digital assets, but provided no substantive updates on bitcoin reserve plans.
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