This was extremely volatile week due to the outcome of the US presidential elections that was uncertain till the very end. The US dollar came out among the strongest of the most-traded currencies after the result of the voting became clear, though the strongest one was the Great Britain pound.
It was expected that Democratic candidate Hillary Clinton would win the elections, and such an outcome was considered bullish for the US currency. And when Republican candidate Donal Trump actually emerged as a victor in the presidential race, the dollar fell sharply. Yet the greenback recovered very fast and ended the week on a strong note.
Meanwhile, the Great Britain pound got a huge boost from Britain’s High Court ruling last week that the nation’s parliament should have a say in the matter of leaving the European Union. Adding to the bullish factor for the currency, the Bank of England changed its stance from dovish to neutral.
The New Zealand dollar suffered from the interest rate cut performed by the Reserve Bank of New Zealand, even though market participants had expected the cut.
EUR/USD dropped from 1.1057 to 1.0857 while its weekly high was at 1.1293. GBP/USD advanced from 1.2452 to 1.2595. NZD/USD sank as much as 3.3% from 0.7344 to 0.7105.
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