Currency markets navigated a week of shifting narratives, where Federal Reserve policy debates took center stage and ultimately tipped the scales.
What began with mixed central bank signals and geopolitical tensions evolved into a decisive dollar rally by midweek, as FOMC meeting minutes and public Fed member commentary revealed deeper divisions among policymakers than many anticipated.
The greenback's momentum proved resilient even as conflicting employment data and late-week dovish commentary from NY Fed President Williams tested its resolve. Meanwhile, the Swiss franc absorbed a painful GDP contraction and dovish SNB rhetoric, while sterling weathered cooling inflation data and the yen oscillated between geopolitical safe-haven flows and intervention speculation.
There's a lot to break down, so let's get started...shall we?