The dollar index ended the week down -0.6%, despite a strong US GDP report. Expectations for a -50 bp rate cut in 2026 are pressuring the dollar, along with Fed liquidity boosts and fears of a dovish Fed Chair appointment by President Trump.

The US launched strikes on ISIS targets in Nigeria, warning of action if attacks on Christians continue. President Trump’s blockade on sanctioned oil tankers led to the US Coast Guard forcing the Bella 1 tanker to move out into the Atlantic Ocean.

Ukraine-Russia peace talks may progress as President Zelensky anticipates a meeting with President Trump. A 20-point peace plan is nearly finalized, pending input from the US, Russia, and Europe. Russia expressed concerns over unanswered questions in the plan.

EUR/USD rose slightly, supported by ECB members’ satisfaction with current interest rates. The ECB remains flexible to adjust policy based on economic conditions moving forward.

USD/JPY increased, despite Tokyo CPI data and weak industrial production numbers. The yen rallied earlier due to a comment from Finance Minister Katayama about intervention against currency moves.

COMEX gold and silver prices rose, with both metals hitting new all-time highs. Precious metals are supported by geopolitical concerns, US tariffs, and the Fed’s monetary policy direction. Central bank demand for gold remains strong, with increased purchases reported.

Read more at Yahoo Finance: Dollar Index Shows Weekly Decline as Fundamentals Remain Weak