The U.S. Dollar held steady this week, gaining approximately 1% on the Bloomberg Dollar Spot Index, as markets navigated geopolitical tensions from the ongoing Israel/Iran conflict and concerns over rising energy prices, with oil potentially reaching $130-150 per barrel. Economists are closely monitoring inflation risks as central banks, including the Fed, might need to reassess policies amidst these pressures. In the UK, the Pound fell over 0.5% this week, driven by weak consumer activity and signs of stagflation, while PMIs next week could further confirm economic struggles. The Swiss Franc also declined nearly 1% following a dovish Swiss National Bank decision to lower rates to 0%, with officials signaling potential future moves given concerns about CHF strength impacting exports. Key economic data, including U.S. GDP and consumer sentiment, will be in focus next week.
