Dollar Fights Downside Pressure

The US dollar was in the corrective mode lately following the earlier impressive rally. Still, the currency was trying to fight back over the past trading week with some success as its losses against the euro and the Japanese yen were not as big as during the preceding week. In fact by the weekend, the greenback managed to log small gains against many currencies, including the Great Britain pound.

The dollar suffered mostly from speculations that the Federal Reserve is going to put off the planned interest rate hike to a later date. The majority of this week’s economic reports from the United States hurt the greenback further as they were unable to catch up with market expectations.

Not every indicator was bad though as the positive unemployment data allowed the US currency to gain ground. The speech of Fed’s chief Janet Yellen also helped the dollar to strengthen.

Now, traders wait for the next week as there are quite a few important economic reports scheduled for the next five business days, and they can have a serious impact on the dollar’ behavior. The most important of the indicators should be the non-farm payrolls. Developments in the situation with Greece (and possible clarification of the country’s future in the eurozone) are another important factor for market participants to watch.

EUR/USD rallied from 1.0839 to 1.1052 during the week but pulled back to close at 1.0885. USD/JPY ended the week at 119.19 after opening at 119.87 and falling to the low of 118.32. GBP/USD dopped from 1.4970 to 1.4873, touching the weekly low of 1.4795. AUD/USD attempted to rally, rising to 0.7938, but failed and settled at 0.7751, below the weekly open of 0.7780.

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