FX weekly: Dollar slips weekly as Yen leads major currency gains — TradingView News

The dollar index DXY, which measures the greenback against a basket of major currencies, was last up 0.39% at $102.36 and remains up over 4.08% for the year to date.

Dollar weekly moves and key drivers:

Over the past week, the US dollar index fell 0.17%.

Cautious sentiment prevailed amid rising oil prices, Middle East tensions, upcoming US midterm elections, and concerns over heavy AI spending.

Markets priced in a 91% probability of the Federal Reserve holding rates steady next week, while expectations for a 25-basis-point rate hike in December stood at 76%.

U.S. Treasury yields were lower over the week, with the 10-year yield (US10Y) moving 16 basis points downward at 4.97%, while the 2-year yield (US02Y) shed ten basis points to 4.67%.

Major currency movements (Oct. 19 to Oct. 25)

Sterling (GBP:USD) was last down 0.27%. While private-sector activity accelerated to its fastest pace since February, September retail sales and consumer confidence weakened sharply. Persistent inflationary pressures have increased expectations of further rate hikes, with three quarter-point increases priced in by April 2027.

In the last week, Japanese yen JPY strengthened to a five-week high, supported by safe-haven demand amid a global tech and AI stock selloff. Meanwhile, Japan’s headline and core inflation rose 2.1% year-on-year in September, exceeding the Bank Of Japan’s 2% target and strengthening expectations of a rate hike later this year, potentially in December, despite rates likely remaining unchanged at the upcoming meeting.