UK policy announcements fuels rally against the greenbackEUR/USD 🔼
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The new UK chancellor has scrapped more tax cuts in the "mini-budget", and slashed its energy subsidies. Although the new administration's grip on authority remains tenuous, the British Pound and Euro significantly managed to bounce back against the US dollar. GBP/USD reached a high of 1.1431, then retreated to 1.1353, while EUR/USD rose over 100 pips and closed at 0.9838.
Stocks also improved upon a return of risk appetite. The three major indices rebounded with notable gains, the biggest earner being the Nasdaq 100, which increased 370 points (+3.46%) to 11,062. Dow Jones and S&P 500 also added 1.86% and 2.65% respectively.
AUD/USD climbed and stabilized at 0.629, and the Reserve Bank of Australia maintained that moderate rate hikes are likely needed to control inflation. USD/CAD plunged almost 170 pips to 1.3709, and USD/JPY traded higher to a 32-year high of 149.03.
A weaker dollar sees the gold price last trading at $1,650.67 after a high of $1,666.4 an ounce. WTI oil futures closed slightly lower at $84.53 a barrel, citing Energy Information Administration's higher expectations in US oil production.
