The US Dollar absolutely crushed it against its major counterparts this past week. In fact, the Euro confirmed its 8th weekly loss against the Greenback, matching an identical losing streak back in 2014. A 9th disappointment would mean the longest monthly losing streak since 1997! But, the Chinese Yuan took the cake in terms of being one of the worst performers.

The Nasdaq Composite, S&P 500, and Dow Jones all suffered declines of -1.95%, -1.11%, and -0.42% correspondingly last week, reflecting a worsening of financial market confidence. The DAX 40 and Euro Stoxx 50 both had declines of -0.63% and -1.06%, respectively, suggesting that conditions in Europe were not much better. The Nikkei 225 in Japan declined by -0.32%, while the ASX 200 in Australia fell by -1.67%.

A key contributor to the cautious pessimism likely stemmed from the US Treasury market. The 10-year yield gained 2.08%, bringing medium-term rates closer to the August high following a dip a few weeks ago.

The upcoming week has a ton of event risk. All eyes will be on the upcoming US inflation report on Wednesday. The Federal Reserve may be in for a mixed bag. The headline rate is projected to increase from 3.2% to 3.6%, possibly as a result of the recent increase in crude oil prices, but core inflation is predicted to fall to 4.3% y/y from 4.7% in July.

Outside of the United States, the week starts off with United Kingdom employment data for British Pound traders, followed by GDP figures later. Meanwhile, AUD/USD will be tuning in for Australian employment data on Thursday. Then, EUR/USD will be eyeing the next ECB rate decision. What else is in store for markets in the week ahead?

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