US Dollar Fails to Capitalize on Positive Fundamentals

The US dollar was trading in a narrow range during the past trading week, closing almost flat against the vast majority of its most-traded peers. The only exception was the Japanese yen, against which the dollar rallied during the week but slid below the opening level by the weekend.

The bunch of good macroeconomic reports and hawkish Federal Reserve officials made a bullish case for the US currency. Coupled with the relatively cautious market sentiment, fundamentals looked just right for the greenback to stage a rally. Yet the expected gains did not materialize.

Instead, traders flocked to the safety of the yen. As a result, the Japanese currency ended the week as the biggest winner on the Forex market.

EUR/USD settled at 1.0606, not far from the opening of 1.0627. GBP/USD slipped a bit from 1.2486 to 1.2402. USD/JPY rallied from 113.59 to the weekly high of 114.93 but retreated to close at 112.70 later.

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