FX weekly: Dollar weakens against major peers — TradingView News

The dollar index DXY, which measures the greenback against a basket of major currencies, was last up 0.10% at $101.93 and remains up over 3.8% for the year to date.

Dollar weekly moves and key drivers:

Over the past week, the US dollar index fell 0.58%, snapping three consecutive weeks of gains.

The greenback came under pressure as concerns over AI-related spending amid persistently high interest rates dampened investor sentiment, triggering an early-week flight to safety that pushed stocks, bond yields, and the greenback lower.

Meanwhile, hotter-than-expected US CPI and PPI data reinforced concerns over mounting inflationary pressures.

U.S. Treasury yields were lower over the week, with the 10-year yield (US10Y) moving 13 basis points downward at 5.07%, while the 2-year yield (US02Y) shed five basis points to 4.73%.

Major currency movements (Oct. 12 to Oct. 18)

In the last week, Sterling (GBP:USD) rose after stronger-than-expected UK economic data bolstered expectations of a potential Bank of England, with four quarter-point increases priced in by July and the first potentially coming as early as November. The currency was last down 0.08%.

The Canadian dollar CAD was last up 0.44%. In the last week, broad-based weakness in the greenback and rising expectations of tighter monetary policy supported the currency. Stronger-than-expected Canadian manufacturing sales reinforced bets on a Bank of Canada rate hike at its next meeting, with most market participants anticipating the central bank’s first increase in the current tightening cycle.