US Dollar Returns Appeal After Several Weeks of Decline

The US dollar rose during the past trading week after several weeks of decline. Hopes for tax reforms in the United States and political uncertainty in Europe made the greenback appealing to Forex traders.

US President Donald Trump said that he prepared a “phenomenal” tax plan, a statement that was welcomed by markets. Meanwhile, economic data released from the United States over the week was mixed, being positive one day and negative the other.

The upcoming elections in Europe weighed on the euro, boosting the dollar’s appeal as a safe haven at the same time. France and its presidential elections drew most attention as far-right candidate Marine Le Pen plans to bring the country out of the eurozone in case of victory.

The New Zealand dollar logged the first weekly decline after six week of gains after the Reserve Bank of New Zealand left its key interest rate unchanged and signaled that it will remain low in the foreseeable future. At the same time, the Canadian dollar trimmed weekly losses versus its US counterpart (almost erasing them completely) after the surprisingly good employment report.

EUR/USD dropped 1.4% from 1.0786 to 1.0638 this week. NZD/USD declined 1.8% from 0.7305 to 0.7176. USD/CAD rallied from 1.3024 to 1.3212 during the week but pulled back to end trading at 1.3073.

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