The US dollar lost its bullish momentum, falling this week. Macroeconomic reports from the United States were good for the most part, indicating continuing growth of the US economy, but even they did not help the currency.
This week was marked by risk aversion due to falling oil prices and concerns about the global economy and China’s growth in particular. Macroeconomic data showed that inflation is slowing in the Asian nation. Such concerns led to speculations that the Federal Reserve may postpone its planned monetary tightening. This, in turn, weakened the US currency.
While the dollar lost its bullish momentum, the Japanese yen got rid of its bearishness, rising against other major peers. Analysts speculate that perhaps the greenback found its top while the yen bottomed, at least in the near term.
EUR/USD jumped 1.3 percent from 1.2286 to 1.2454, bouncing from the weekly low of 1.2247 — the lowest since August 2012. GBP/USD soared from 1.5569 to 1.5719. USD/JPY dropped 2.3 percent from 121.58 to 118.65.
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