Dollar Ends Week on Strong Note, Defying Adverse Fundamentals

The US dollar ended this week with gains even though it looked like fundamentals were against the US currency. The greenback was particularly strong against the euro, and this was surprising considering the progress in the situation with Greece. At the same time, the dollar was unable to beat the Great Britain pound.
The dollar struggled after the testimony of Janet Yellen, Federal Reserve Chairperson, made speculators reconsider the potential timing for an interest rate hike, hurting the dollar. Furthermore, many economic indicators from the United States were lackluster. Yet the greenback jumped on Thursday despite adverse fundamental data, resulting in a weekly gain.
Meanwhile, the euro was extremely weak, reaching the lowest level since December 2007 against the sterling. It was a surprise considering that a bailout deal has been made, which was approved by other eurozone members, including Germany.
EUR/USD dropped from 1.1394 to 1.1190, demonstrating the weakest weekly close since October 2003. GBP/USD went up 1.5396 to 1.5438, reaching the weekly high of 1.5551. USD/JPY ticked up from 119.09 to 119.63 over the week.

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