The euro fell against most of its major peers this week as the outlook for the monetary policy of the European Central Bank remained dovish. The currency showed better performance against safe currencies like the Japanese yen and the Swiss franc.
Whatever chances the euro had for a rally, they were evaporated after the ECB meeting. The central bank did not make a move just yet, but remarks from President Mario Draghi were rather dovish. Unsurprisingly, the euro became very soft after the event.
The euro was especially vulnerable against commodity currencies due to the bounce of crude oil by the weekend. Consequently, safe currencies found little demand, allowing the shared currency of the eurozone to gain against them. The Japanese yen was also suffering from the threat of additional stimulus from the Bank of Japan. The US dollar escaped losses as traders yet again were speculating about monetary tightening from the Federal Reserve.
EUR/USD opened at 1.1299, rose to the high of 1.1390 during the week but retreated to close at 1.1222. EUR/CAD 1.8% sank from 1.4630 to 1.4218 — the lowest weekly close since November. EUR/JPY gained as much as 2.1% from 122.31 to 125.24. EUR/CHF went up from 1.0909 to 1.0985.
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