This week was mixed for the US dollar which rose against some major currencies, like the euro and the Japanese yen, but fell against commodity-linked currencies, including the Australian and the Canadian dollar.
The week was relatively light on economic data, yet the greenback reacted virtually to every piece of data that came out from the United States. This resulted in very volatile trading as the currency was rising one day and was falling the next. Still, the dollar ended its two-week losing streak versus the euro and the yen. Gains of the US currency resulted in the first weekly decline of prices for gold after two weeks of rally.
The next week should be more eventful. With a monetary policy announcement from the Federal Reserve and GDP data, as well as other important economic releases, the dollar will have strong fundamental drivers for its performance. This may result in even more volatility for the currency.
EUR/USD fell from 1.2750 to 1.2668, while USD/JPY advanced from 107.21 to 108.11 over the week. At the same time, AUD/USD ticked up from 0.8757 to 0.8799, and USD/CAD dropped from 1.1287 to 1.1232.
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