The Japanese yen was the top performing currency last week and the currency rose 0.62% on the week. The gains in the yen came amid the market uncertainty which pushed investors to seek the safe haven currency.

The weakest currency last week was the British pound which fell 1.89% over the week. The decline in the currency came due to Brexit related uncertainty and a stronger USD.

The NOK was the second weakest currency pair. The currency fell 1.68% and extended the declines from the previous week.

The EUR failed to hold on to the gains from W42 as the common currency fell nearly 1% last week. The broader strength in the USD and a weaker sentiment in the Eurozone kept the currency weaker. Even the ECB’s meeting couldn’t help to push the common currency higher.

The Canadian dollar lost 0.15% on the week extending the declines from the week before. The declines were however moderate, but the CAD fell against the USD despite the BoC delivering a rate hike last week.

The Australian dollar extended the declines, falling 0.58% on the week. This reverse that moderate gains of 0.07% made the week before.

The NZD currency completely reversed the gains of 1.37% from the week before. The NZD was down 1.31% on the week.

Market Highlights – review

Bank of Canada’s Monetary Policy Meeting

The Bank of Canada held its monetary policy meeting last week on Wednesday.

As widely expected, the central bank hiked interest rates by 25 basis point bringing Canada’s interest rates to 1.75%.

This was the highest interest rate since over a decade. At the monetary policy meeting, the Bank of Canada’s statement said that further rate hikes were required at a faster pace.

The hawkish commentary comes after Canada concluded a deal with the United States and Mexico.

The central bank also mentioned this in its monetary policy.

It however said that some trade tensions still remained.

The BoC noted that economic outlook would be slightly slower than expected but noted that the recent rise in inflation.

Consumer prices touched the highest level at 2.7% in September 2018.

However, inflation is expected to ease back to 2.0%, the BoC’s inflation target rate by middle of next year.

Economists expect that interest rates will be hiked by another quarter point in December 2018.

Swedish Riksbank Monetary Policy Meeting

The Swedish Riksbank held its monetary policy last week.

In a widely expected move the central bank held interest rates unchanged at -0.50%.

However, the central bank maintained its forward guidance noting that interest rates will be hiked during the December 2018 – February 2019 window.

Two of the policy makers voted for a quarter point rate hike at last week’s meeting.

The Riksbank said that it would continue to monitor the economy as it approaches the rate hike.

Economists are divided on the timing of the rate hike.

Many expect the Riksbank to hike interest rates at the February 2019 policy meeting.

The Riksbank’s meeting came ahead of the ECB’s meeting on Thursday.

ECB Monetary Policy Meeting

The European Central Bank held its monetary policy meeting on Thursday.

As widely expected, the central bank kept its interest rates unchanged although the ECB heads into its final stage of the bond purchases.

The European central bank is expected to purchase bonds at the pace of 15 billion per month before ending its QE by December 2018.

The central bank reaffirmed its stance on monetary policy despite the recent slowdown in the Eurozone’s economy.

The ECB also brushed aside concerns about the tussle between Italy and Brussels on the budget deficit noting that he was confident an agreement would be reached.

US GD Report

The third quarter advanced GDP report from the United States was released last week.

Data showed that the U.S. economic growth slowed in the third quarter.

However, the pace of growth was far better than forecasts.

Data released by the U.S. department of Commerce showed that the U.S. economy advanced 3.5% in the third quarter of the year ending September 2018.

This was better than the 3.3% increase that was forecast.

However, the pace of growth was slower from 4.2% registered in the second quarter.

Adding to the GDP gains were increases from personal spending, private investment and government spending.

Posting a drag on the GDP came from exports and investment in fixed residentials.