The pound posted its biggest weekly decline versus the dollar since July as signs the U.S. economy is strengthening fueled bets the Federal Reserve will slow stimulus that tends to debase the greenback.
Treasury 10-year notes fell the most in two months this week as two gauges of U.S. economic activity expanded at faster-than-forecast paces, weakening the case for the Federal Reserve to maintain stimulus.
The euro slid the most in more than a year versus the dollar as weaker-than-forecast economic data for the currency region fueled speculation the European Central Bank will cut interest rates as soon as at its meeting next week.
Lenders including JPMorgan Chase & Co. and Citigroup Inc. will have to show they can survive the demise of a trading partner or a plunge in value of high-risk business loans in the 2014 version of U.S. stress tests.
The Canadian dollar had its biggest weekly gain in 20 months against a basket of nine developed- nation currencies as better-than-forecast North American economic reports contrasted with slowing European growth.
JPMorgan Chase & Co. said that the U.S. Department of Justice is conducting at least eight separate investigations into the bank’s activities, ranging from recruitment in Asia to its relationship with Ponzi scheme operator Bernard Madoff.
Asian stocks ended the week little changed as investors weighed optimism about corporate earnings against concern the Federal Reserve may start paring stimulus, and as the dollar gained against Asian currencies.