In the last quarter, the US dollar made a strong recovery, recouping losses from European and Asian trading and even reaching new highs. This was particularly evident in the strong performance of USD/CAD as oil prices reversed and ended the week flat. Treasury yields also rebounded after an initial slide, leading to a decline in equity markets, which ultimately finished the quarter largely unchanged after a strong start. Despite slightly soft inflation numbers in the PCE report and a dovish tilt from Williams, the movements in the market were more influenced by quarter-end flows rather than fundamental factors. As a result, gold prices fell to their lowest level since mid-March.
Amidst the quarter-end volatility, the US dollar initially started off weaker during North American trade. However, it rallied strongly and broadly, ultimately finishing the day largely unchanged. This wraps up the trading activities for the week, month, and quarter. Investors are now turning their attention to the upcoming October seasonals, which will provide insights into market trends.
Overall, the last quarter witnessed significant fluctuations in various markets, including the US dollar, gold, oil, and equity markets. While some of the movements were influenced by economic data and central bank signals, much of the volatility was driven by quarter-end flows. As the new quarter begins, market participants will closely monitor these trends and seek to understand the factors that will shape the next phase of market activity.