Dollar Moves Lower During Week’s Thin Trade

Trading during the past week was light as traders were preparing for Christmas. This did not prevent the US dollar to move lower, sometimes noticeably, against other most-traded currencies.

The first interest rate hike from the Federal Reserve in nearly a decade failed to propel the dollar higher. There could be several reasons for such behavior, but the important fact remains that the Fed’s decision was not as bullish as one could assume. The greenback was falling for the most part of the past week. For example, it was moving down versus the euro every single day with the exception of one.

With the approach of the New Year holiday, next week should also be light on important events. This may result in both thin trading and volatile swings as traders will likely be taking profits to start the new year afresh.

EUR/USD advanced from 1.0851 to 1.0952. GBP/USD edged higher from 1.4898 to 1.4925, bouncing from the weekly low of 1.4805 — the weakest rate since April 15. USD/JPY dropped from 121.24 to 120.29.

If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *