Forex Market Weekly Review: Dollar Dominates as Euro, Pound and Gold Weaken

Global currency markets ended the week on Friday, November 13, with the US dollar maintaining a strong position against most major currencies. Rising US Treasury yields, stronger-than-expected inflation data and increasingly hawkish Federal Reserve commentary helped the greenback record its strongest weekly performance in approximately two months.

The euro approached its lowest level against the dollar since April 2025, sterling recorded its largest anticipated weekly decline since September, and the Japanese yen remained close to the psychologically important 160-per-dollar level. The Australian and New Zealand dollars also weakened, reflecting the broader pressure on currencies outside the United States.

Gold experienced another difficult week, falling below the $4,000-per-ounce threshold and reaching a fresh low for 2026 before attempting to stabilise.

As investors prepare for the new trading week, attention will shift towards US retail sales, Federal Reserve meeting minutes, UK inflation, Japanese economic data and developments in commodity markets. These events could influence the direction of major currency pairs and precious metals.

Key Takeaways

• The US Dollar Index reached approximately 103.37, its highest level since April 2025.
• US two-year Treasury yields climbed to approximately 4.87%, recording a weekly increase of around 34 basis points.
• EUR/USD traded around 1.1030, close to a 19-month low.
• GBP/USD stood around 1.3230, with sterling heading for its largest weekly decline since September.
• USD/JPY hovered around 159.70, keeping Japanese currency intervention concerns alive.
• AUD/USD weakened to approximately 0.6773, while NZD/USD fell to around 0.5525.
• Gold dropped below $4,000 per ounce, reaching a fresh 2026 low as the stronger dollar and higher interest-rate expectations weighed on demand.

US Dollar Dominates as Interest Rate Expectations Shift

The US dollar was the defining story in the foreign exchange market throughout the week.

According to Reuters reporting on November 13, the greenback was on course for its strongest weekly rise in approximately two months. The Dollar Index, which measures the dollar against a basket of six major currencies, reached 103.37, maintaining its highest level since April 2025.

The rally was supported by stronger-than-expected US inflation data, a robust employment report and hawkish comments from Federal Reserve officials.

These developments encouraged investors to reassess the outlook for American monetary policy. Rather than anticipating an imminent reduction in interest rates, markets increasingly considered the possibility of additional tightening.

US two-year Treasury yields rose approximately 34 basis points during the week to around 4.87%. This represented their largest weekly increase since April 2025.

Market pricing also indicated approximately a 90% probability of a 25-basis-point Federal Reserve rate increase in December, according to the CME FedWatch figures cited by Reuters.

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The dollar’s recent strength reflects changing expectations about the relative attractiveness of US assets. Higher Treasury yields can encourage international investors to favour dollar-denominated investments, placing pressure on currencies whose central banks are expected to maintain comparatively accommodative monetary policies.

The resulting interest-rate differential has become one of the most important factors influencing the major currency pairs.

Major Currency Pairs: Friday’s Market Performance

EUR/USD: Euro Approaches a 19-Month Low

The euro remained under considerable pressure against the US dollar, with EUR/USD trading around 1.1030 on Friday.

Reuters reported that the pair had reached its weakest level since April 2025 and was heading towards its fourth consecutive weekly decline.

The euro’s weakness has largely reflected the growing difference between US and European monetary policy expectations. Stronger American inflation and employment figures have strengthened the case for tighter Federal Reserve policy, while the eurozone has struggled to generate comparable support for its currency.

The pair’s performance also reflects investor concerns about the region’s economic growth prospects and the European Central Bank’s policy direction.

European economic indicators and comments from ECB policymakers will remain important in determining whether the euro can attract renewed buying interest.

GBP/USD: Sterling Records Its Largest Weekly Decline Since September

Sterling ended Friday around 1.3230 against the US dollar, remaining under pressure despite relatively supportive UK economic growth figures.

Reuters reported that the pound was heading for its largest weekly decline since September and had recorded four consecutive negative sessions against the dollar.

Interestingly, the pressure on sterling was driven largely by developments in the United States rather than a significant deterioration in the British economy.

UK economic growth figures released earlier in the week matched expectations, supporting the Bank of England’s recent interest rate increase. Markets were also pricing in approximately an 85% probability of another rate increase in December.

However, the stronger US dollar continued to dominate the exchange rate.

Against the euro, sterling demonstrated greater resilience, trading around 0.8355, close to its strongest level since May 2025.

Investors will be looking towards the next UK inflation release for further indications about the Bank of England’s monetary policy direction.

USD/JPY: Yen Remains Close to the 160 Threshold

The Japanese yen remained one of the most closely watched currencies during Friday’s session as USD/JPY hovered around 159.70.

The pair’s movement brought the Japanese currency close to the important 160-per-dollar threshold, a level that has increased concerns about possible intervention by Japanese authorities.

The yen weakened approximately 1% during the week, placing it on course for its largest weekly decline since September.

The widening interest-rate differential between the United States and Japan has been a major factor behind the currency’s weakness. Higher US Treasury yields have increased the relative attractiveness of dollar-denominated investments.

Japanese Finance Minister Satsuki Katayama indicated on Friday that the government would respond appropriately to currency volatility.

Such comments have kept intervention concerns alive, making the yen particularly sensitive to official statements and sudden changes in market positioning.

USD/CHF: Dollar Gains Against the Swiss Franc

The Swiss franc also struggled against the stronger US dollar. USD/CHF traded around 0.8390 on Friday, with the pair gaining approximately 0.47% during the session.

The movement placed the pair near its highest level in approximately one month and put the dollar on course to end a two-week losing streak against the Swiss currency.

The Swiss franc traditionally attracts safe-haven demand during periods of financial uncertainty. However, the current interest-rate environment has supported the dollar as investors reassess the returns available from different currencies.

The balance between safe-haven demand and interest-rate differentials will remain important for the pair.

USD/CAD: Canadian Dollar Faces Dollar-Driven Pressure

The Canadian dollar remained exposed to the broader strength of the US currency during the week.

USD/CAD was influenced by the widening interest-rate differential between the United States and Canada, as well as changing expectations about the Bank of Canada’s future monetary policy.

Oil-market developments also remain important for the Canadian currency because Canada is a major energy exporter. Changes in crude prices can influence expectations about Canadian export revenues and the broader economic outlook.

Investors will be monitoring Canadian inflation figures and commodity-market developments for additional information about the currency’s direction.

AUD/USD: Australian Dollar Remains Under Pressure

The Australian dollar weakened against the US currency, with AUD/USD trading around 0.6773 on Friday.

Reuters identified the Australian dollar as the weakest-performing G10 currency against the greenback during November up to that point, having declined approximately 2.5% over the preceding month.

One factor contributing to its weakness has been the changing outlook for Australian monetary policy. Australia was the only G10 economy for which markets were pricing in an interest rate reduction next year.

Meanwhile, rising US Treasury yields have made dollar-denominated assets relatively more attractive.

China’s economic performance will also remain relevant to the Australian dollar because of Australia’s close trading relationship with the Chinese economy, particularly in commodities.

NZD/USD: New Zealand Dollar Extends Weekly Losses

The New Zealand dollar also weakened against the greenback, trading around 0.5525 on Friday.

The kiwi declined approximately 0.41% during the session and was heading towards its third consecutive weekly decline.

The currency has faced pressure from the stronger US dollar and changing expectations about international interest rates.

New Zealand’s economic outlook, Reserve Bank policy expectations and developments in China will remain important considerations for the currency.

Gold Market: Precious Metal Falls Below $4,000

Gold experienced one of its most difficult weeks in recent months, falling below the psychologically important $4,000-per-ounce level and reaching a fresh low for 2026.

The decline came as the stronger US dollar and rising interest-rate expectations reduced the attractiveness of holding non-yielding precious metals.

Gold is particularly sensitive to movements in US Treasury yields because higher returns on interest-bearing investments increase the opportunity cost of holding the metal.

Comments from Federal Reserve officials suggesting that further monetary tightening could be necessary also contributed to the negative sentiment.

In addition, some safe-haven demand eased as markets became more optimistic about the possibility of an agreement between the United States and Iran.

StoneX market analyst Fawad Razaqzada reported on November 13 that gold was trading approximately $100 below the $4,000 threshold following its fresh 2026 low.

Despite the decline, the longer-term gold market has continued to receive structural support from central bank purchases. Historically stronger seasonal demand between November and the beginning of the following year could also become relevant.

However, seasonal patterns do not guarantee a recovery, and the recent decline illustrates how strongly gold can react to changing interest-rate expectations.

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Gold’s fall below $4,000 highlights the influence of monetary policy on precious metals. Although central bank demand and seasonal factors may provide longer-term support, the immediate market environment remains sensitive to US inflation, Treasury yields and dollar movements.

Friday’s Major Market Snapshot

The following table summarises the indicative market levels reported during Friday’s trading session. These are reported market quotations rather than official exchange settlement prices.

Note: Currency levels are indicative quotations reported at different points during Friday’s trading session and should not be interpreted as simultaneous closing prices. Gold’s reported position reflects its move below $4,000 rather than an official settlement quotation. Weekly direction describes the broad market performance.

What Could Influence the Markets in the Coming Week?

The week of November 16–20 is expected to bring several important economic releases across the United States, Europe, the United Kingdom, Japan, Canada, Australia and China.

These developments could influence interest-rate expectations, government bond yields and investor sentiment across the global currency market.

United States: Retail Sales and Federal Reserve Minutes

US retail sales figures for October are scheduled for Tuesday, November 17. The report will provide an important indication of consumer spending and the resilience of the American economy.

Industrial production figures will also be released on Tuesday, while the minutes of the October Federal Reserve meeting are scheduled for Wednesday, November 18.

Investors will be particularly interested in the discussions surrounding inflation, employment conditions and the appropriate direction of monetary policy.

United Kingdom: Inflation and Employment Data

UK unemployment figures are scheduled for Tuesday, November 17, followed by October inflation data on Wednesday, November 18.

These releases could influence expectations surrounding the Bank of England’s interest-rate decisions, particularly after the pound experienced a difficult week against the US dollar.

UK retail sales figures are also scheduled for Friday, November 20.

Japan: Economic Growth and Inflation

Japan’s preliminary third-quarter GDP figures are scheduled for Sunday, November 15, ahead of the new trading week.

Japanese trade figures are scheduled for Tuesday, while October inflation data will be released on Thursday, November 19.

With USD/JPY approaching 160, economic developments and any further statements from Japanese officials could have significant implications for the yen.

Canada: Inflation Takes Centre Stage

Canadian October inflation figures are scheduled for Monday, November 16.

The release will be important for assessing the Bank of Canada’s monetary policy outlook and could influence the Canadian dollar against the US currency.

Canadian producer-price data is also scheduled for Thursday, followed by retail sales figures on Friday.

Australia and China: Regional Economic Signals

Australian wage-price figures and employment data are scheduled for Wednesday and Thursday respectively. Investors will be assessing whether domestic economic conditions support the Reserve Bank of Australia’s current policy position.

China’s October industrial production and retail sales figures are scheduled for Monday. These releases will be important for assessing the strength of the Chinese economy and its potential implications for commodity-linked currencies, particularly the Australian dollar.

The Reserve Bank of Australia’s November meeting minutes are also scheduled for Tuesday.

Gold and Global Risk Sentiment

Gold will remain sensitive to developments in US monetary policy, Treasury yields and the dollar. Investors will also monitor geopolitical developments and central bank demand for indications of changing sentiment in the precious metals market.

Developments in energy markets and international trade could also influence the Canadian and Australian dollars.

The detailed technical outlook, important price levels and potential scenarios for the individual currency pairs will be covered separately in the upcoming SkyPress Forex Forecast.

Conclusion: Dollar Strength Defines the Week

The week ending November 13 demonstrated the influence of monetary policy expectations on the global currency market.

The US dollar emerged as the dominant currency, supported by stronger inflation data, hawkish Federal Reserve commentary and rising Treasury yields. The euro and pound struggled to maintain their positions, while the Japanese yen approached a critical psychological threshold.

Commodity-linked currencies also faced pressure, while gold extended its decline below $4,000 per ounce.

However, the coming week brings several important economic releases that could influence investor expectations. US retail sales, Federal Reserve minutes, UK inflation, Japanese economic data and Canadian inflation will be among the developments attracting attention.

For traders, investors and financial market observers, the interaction between inflation, interest rates and global economic conditions will remain central to understanding movements across the major currencies and precious metals.

Frequently Asked Questions

Why did the US dollar strengthen during the week ending November 13?

The dollar benefited from stronger-than-expected US inflation data, robust employment figures, rising Treasury yields and hawkish Federal Reserve commentary.

Why is USD/JPY approaching 160?

The widening interest-rate differential between the United States and Japan has supported the dollar against the yen. The resulting currency weakness has increased concerns about possible intervention by Japanese authorities.

Why did gold fall below $4,000?

Gold faced selling pressure as the stronger US dollar and rising interest-rate expectations reduced the attractiveness of holding a non-yielding precious metal.

Which economic releases are important during the week of November 16?

Important releases include US retail sales, Federal Reserve minutes, UK inflation, Japanese GDP and inflation, Canadian CPI and Chinese industrial production and retail sales.

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Sources and Market Data

This report draws on financial market reporting, independent market research and published economic calendars. Key information was cross-checked against the following sources:

• Reuters – Dollar set for best week in two months, yen weakens toward 160 (November 13, 2026)
• Reuters – Sterling set for biggest weekly drop since September (November 13, 2026)
• StoneX – Gold outlook: Seasonal tailwind offers hope with XAU/USD below $4,000 (November 13, 2026)
• FOREX.com – US dollar forecast: USD/JPY and USD/CHF in focus
• Newsquawk – Week in Focus: November 16–20, 2026
• Scotiabank – November 2026 Economic Release Calendar

Disclaimer: This article is intended strictly for informational and educational purposes. It does not constitute financial, investment or trading advice. Forex and commodity markets involve significant risks, including the possibility of losing capital. Past market performance does not guarantee future results. Readers should conduct independent research and consider their individual financial circumstances before making investment or trading decisions.

SkyPress Desk | SkyPress News
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