Turbulent Week for US Dollar Behind
The US dollar experienced a turbulent week, rising in the first half of the week, but sharply dropping in the second as Forex traders were attempting to guess what steps the Federal Reserve will take next month.
Market participants were speculating whether the Fed is going to tamper its asset purchases in September. At first positive data supported the case for stimulus reduction. Yet a bunch of negative reports was released later, resulting in a sharp drop of the currency.
The confusion on the market resulted in a mixed performance of the greenback. It fell against the pound (which was strong due to domestic fundamentals), rose against the yen and ended the week flat versus the euro.
EUR/USD slid from 1.3318 to 1.3205 during the week, but rebounded and closed at 1.3332. GBP/USD jumped from 1.5486 to 1.5626, bouncing from the weekly low of 1.5421. USD/JPY closed at 97.52 after opening at 96.28 and reaching the high of 98.62.
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Earlier News About the US Dollar:
- Dollar Mixed as US Data Leaves Traders Confused (2013-08-16)
- Dollar Weakens Despite Positive Unemployment Data (2013-08-15)
- Greenback Slips as Better News Comes Out of Europe (2013-08-14)
- US Dollar Gets Help From Latest Retail Sales Data (2013-08-13)
- US Dollar Back in Demand as Stocks Falter (2013-08-12)