Dollar Ends Its Long Stretch of Weekly Gains

The US dollar ended the week as the biggest loser on the Forex market. This followed the long stretch of weekly gains. For example, the greenback was rising for four straight weeks against the euro and the Japanese yen. Yet markets usually do not move in one direction for long, and the continued rally ended at last.

The reason for the abysmal performance was the Wednesday’s monetary policy statement from the Federal Reserve. While it was not pessimistic strictly speaking, market participants still considered it to be more dovish than was expected, resulting in a huge slump of the dollar. The US currency has not been able to recover ever since.

The dollar virtually erased last week’s gains against the euro. The losses against the Great Britain pound were not as big as the previous week’s rally while the drop against the Japanese yen far exceeded gains during the preceding trading week.

EUR/USD jumped from 1.0489 to 1.0815 (3.1 percent) while its weekly high was at 1.1034. GBP/USD climbed from 1.4735 to 1.4951 (1.5 percent), reaching the maximum of 1.5159 during the week. USD/JPY slid from 121.43 to 120.02 (1.1 percent.)

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