The US dollar ended the week on a relatively strong footing considering how many important events happened during the past week’s trading, which could have hurt the currency.
US President Donald Trump at last nominated Jerome Powell as the next Federal Reserve Chair, who will succeed Janet Yellen after her term expires in February. The House of Representatives unveiled the long-awaited tax bill on Thursday after a one-day delay. Nonfarm payrolls came out rather disappointing, hurting the dollar, but the positive services sector data rescued the currency.
Meanwhile, the policy announcement made by the Bank of England hurt the Great Britain pound significantly. While the bank hiked interest rates for the first time in a decade, the policy statement made an impression that it might be a one-off event.
EUR/USD rallied from 1.1604 to 1.1689 during the week, but retreated to end this week’s trading almost at the opening level, closing at 1.1606. GBP/USD opened at 1.3128, rallied to the week’s high of 1.3320, but slumped to end trading at 1.3074. USD/JPY ended the week at 114.03 after opening at 113.74 and falling to the weekly low of 112.95.
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