 The financial markets gained much-needed clarity last week as strong US employment data aligned market expectations with Fed’s own monetary policy outlook. The possibility of a 50bps rate cut in November has now vanished, with traders anticipating two more standard 25bps cuts this year, matching Fed's dot plot. This development boosted Dollar, which ended the week as the strongest performing currency. Additionally, funds appeared to flow heavily from bonds into stock markets, driving up Treasury yields, and lifted DOW to new record close. The surge in 10-year yield was more than offset the typical "risk-on" sentiment’s negative effect on the greenback. Canadian Dollar finished as the second strongest currency, largely driven by the significant rally in oil prices. Escalating tensions in the Middle East pose a serious threat to global oil supply, a wildcard that could influence not only the Loonie but also global inflation, monetary policy, and financial markets in the near term. Australian Dollar was the third strongest, although it seemed to lose some momentum towards the end of the week. On the other end of the spectrum, Yen struggled as the weakest currency of the week. New Japanese Prime Minister Shigeru Ishiba's dovish pivot on monetary policy, combined with a sharp rise in U.S. and European yields, pressured Yen further. New Zealand dollar also languished near the bottom, with firm expectations of a 50bps rate cut from RBNZ next. Swiss Franc also found itself among the weakest performers after the new SNB Chair, Martin Schlegel, clearly outlined a dovish stance. Euro and Sterling settled in middle positions. The ECB’s unified stance on a October rate cut contrasted sharply with BoE's internal division, with top officials offering conflicting views on the future of monetary policy.... | 
