Global FX Market Overview for the Week of April 13–18, 2026
🌍 The FX market this past week was driven mainly by US-Iran tensions and sharp moves in oil, not by central banks or major macro releases. Early in the week, rising geopolitical risk pushed oil above $100 per barrel and sent capital back into the US dollar as a short-term safe haven.
📉 That move then reversed as diplomatic hopes returned and the Hormuz story shifted from blockade risk to possible reopening. Oil cooled, risk appetite improved, equities recovered, and the dollar moved from being strong early in the week to clearly weaker by the close.
💵 The DXY therefore saw a volatile week but still ended with a mild downside bias. The dollar jumped during the initial risk-off phase and briefly reached the weekly high near 99.18, then gradually lost momentum as tensions eased and US data failed to give it a stronger follow-through.
💶 European currencies benefited the most from that softer dollar backdrop. EUR/USD dropped sharply early in the week before rebounding, while GBP/USD also regained upside momentum and kept a bullish tone into the weekend. The market clearly preferred the de-escalation narrative over a fresh round of USD buying.
💴 Elsewhere, USD/JPY stayed elevated and traded in a wide range, showing that the yen is no longer acting as a pure safe haven. AUD/USD recovered well as risk-on sentiment returned, while the Canadian dollar and several EM currencies also found support as early-week panic faded.
🔎 Overall, the week marked a clear shift in FX from risk-off to risk-on within just a few sessions. The key issue for next week is whether the easing narrative around Hormuz gets further confirmation, because that will likely decide whether pressure on the dollar continues.