This week had quite a few important events that have affected the Forex market. The most important of them were the meetings of various central bank and US non-farm payrolls. There were reasons to believe that the euro would fall over the week, but surprisingly enough the currency remained rather resilient.
Last week was not bad for the euro, and this week was not much different. The shared 18-nation currency demonstrated strength ahead of the European Central Bank policy meeting even though it was expected that the central bank would add monetary stimulus. Indeed, the ECB acted, making an unprecedented move as it cut some interest rates into a negative territory, and this drove the euro down. The drop turned out to be very brief, allowing the euro to recover by the end of the trading session.
As for other news, all major central banks, including the Reserve Bank of Australia, the Bank of Canada and the Bank of England, refrained from changing their monetary policies. As for US payrolls, they were in line with expectations, allowing the dollar to rally but making the gains limited.
EUR/USD closed at 1.3643, not far from the opening of 1.3635, after reaching the weekly low of 1.3502. EUR/JPY advanced from 138.89 to 139.88. EUR/GBP dropped from 0.8129 to 0.8063 during the week but bounced to close at 0.8118.
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