USD has shown strength this week, rebounding from two-week lows against the GBP and EUR. Most recent development, seeing US stock markets taking big losses out of fear in the technology sector regarding artificial intelligence, saw stocks plummeting.
A sell-off situation has boosted the USD to gain 0.5% against the GBP and 0.65% to the EUR. The release of Deepseek (Chinese based AI company) has created panic and caused a total of a trillion $ loss so far. It will be of most importance to keep an eye for comments and development on the stock markets as they can carry on volatility and most likely continue to cause additional volatility to currency markets.
For this week, its filled with central bank decisions from Canada, US and lastly Europe. First out tomorrow, we have Bank of Canada expected to lower borrowing costs by 25 basis points down to 3%. The Canadian central bank has been one of the more aggressive on lowering interest rates, seeing levels sitting at 5% back in April 2024.
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