The dollar has recovered a bit of ground against its peers so far this week, with concerns over rising global inflation and some hawkish comments from FOMC members keep the safe-haven greenback well bid.

Stock markets and risk markets in general rebounded strongly last week, while US rates did not.

The main theme in the FX market this week has continued to be one of a broadly weaker US dollar.

The Chinese yuan was one of the best performing currencies worldwide up until very recently.

Last week saw some strange market action. Financial headlines were dominated by the relentless sell-off in world equity markets that left the S&P 500 index flirting with the semi-official bear market line of 20% below its record high.

The second edition of the Monthly Goods Trade Monitor from Ebury uncovers growing imports of LNG from, and exports of machinery to, Peru as the country becomes increasingly important part of the UK’s global energy strategy.

A significant improvement in market risk sentiment weighed on the US dollar against just about every other currency in the world on Tuesday, while leading to rallies in equities and a sell-off in government bond markets.

Another week of risk asset sell offs had a predictable effect on currency markets.