Dollar Dips During Week of FOMC Decision

The US dollar dipped during the past trading week, demonstrating especially big losses versus the Great Britain pound. Two themes dominated the Forex market over the week: one being bullish for the greenback, another was bearish.
The bearish one was the policy meeting of the Federal Reserve. The statement of the meeting was rather dovish and suggested that the Fed is not in a hurry to raise interest rates. While a rate hike is possible later this year, the market reacted negatively nevertheless, sending the dollar down.
As for the bullish factor, it was the debt crisis in Greece. The end of the month nears, and so the deadline for debt repayment. As a result, chances for a default and an exit of Greece from the eurozone are increasing with every passing day.
EUR/USD advanced from 1.1213 to 1.1345, reaching the weekly high of 1.1435. GBP/USD surged 2 percent from 1.5546 to 1.5870 over the week. USD/JPY slipped from 123.17 to close at 122.73 following the rally to the weekly maximum of 124.44.

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