FX weekly: Global currencies gain as dollar retreats — TradingView News

The dollar index DXY, which measures the greenback against a basket of major currencies, was last down 0.24% at $101.63 and remains up over 3.47% for the year to date.

Dollar weekly moves and key drivers:

Over the past week, the US dollar index fell 0.14%.

Disappointing earnings from major tech firms and concerns over the sustainability of the AI rally triggered a flight to safety.

Meanwhile, US data showed the economy grew at a stronger-than-expected annualized rate of 3.4% in Q3, driven by resilient consumer spending and AI-related investment.

U.S. Treasury yields were lower over the week, with the 10-year yield (US10Y) moving 3 basis points downward at 4.94%, while the 2-year yield (US02Y) shed ten basis points to 4.61%.

Major currency movements (Oct. 26 to Nov. 1)

Sterling (GBP:USD) was last down 0.27%. In the last week, the pound rose above $1.34, reaching its highest level since mid-September and posting a gain of around 1% this month. This marks its first monthly increase since August, driven by the government’s budget measures and rising expectations of a Bank of England interest rate hike in November.

In the last week, Australian dollar (AUD:USD) slipped as investors remained cautious ahead of Tuesday’s Reserve Bank of Australia monetary policy announcement, with the central bank widely expected to raise its cash rate by 25 basis points to 4.85%, a level not seen in nearly two decades. The move would mark the RBA’s fifth rate hike this year, reflecting its focus on curbing inflation, with headline and underlying inflation remaining elevated at 3.9% and 3.7%, respectively.