The US dollar ended the week as the weakest currency among the major ones. The euro was mixed, while the Great Britain pound was the strongest.
The Federal Market Open Committee surprised markets by its rather dovish policy minutes, sending the dollar down. The situation did not improve for the currency after the Consumer Price Index rose less than analysts had expected. Surprisingly enough, politics had little impact on the currency despite the clash between US President Donald Trump and his fellow Republicans and growing tensions between the United States and North Korea.
Political problems, namely the attempts of Catalonia to separate itself from the rest of Spain, also had little impact on the euro. What did hurt the currency was the uncertainty about monetary policy of the European Central Bank. According to speculations, the ECB is planning to halve its asset purchase target from â¬60 billion per month to â¬30 billion but extend the asset purchase program for a prolonged period of time.
Meanwhile, politics did affect the sterling as the report that the Brexit negotiations between Britain and the European Union have reached a deadlock was quickly followed by rumors that the Brexit deal can be actually achieved.
EUR/USD advanced from 1.1728 to 1.1821, touching the weekly high 1.1879. GBP/USD rallied 1.4% from 1.3096 to 1.3281. USD/JPY declined from 112.57 to 111.83.
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