The Fed rate decision is incoming, and a further continuation of this move could lower the expectations of further rate rises.

The US Dollar finally succumbed as the US Inflation data missed to the downside. DXY broke the key 100.80 level closing over 2% lower on the week.

Euro and the Pound both moved higher against the US Dollar but failed across the other majors. Euro gained over 2% and the GBP just shy of 2%.

Commodity currencies soared as the weaking dollar and strengthening of Oil sent them moving significantly higher. Canadian dollar gained 0.5% but both AUD and NZD rallied 2%. The biggest winner was the NOK gaining 5.4%. Having slid to lows over the last few months a sharp snap back in the NOK was both USD and demand driven.

Without wishing to sound a like a broken record oil had another volatile but range bound week. Gains were made and WTI closed at 2%.

The week ahead will continue to be volatile as further inflationary data is released. We have the Canadian, New Zealand, UK, EU, and Japan numbers which will give the markets a good read into the state of the global economy and how central banks may need to react.