Surging US Treasury Yields Help Dollar End Week Strong

The US dollar was very strong during the past trading week, for the most part thanks to surging US Treasury yields.

Rising yields for US Treasuries boosted the dollar at the start of the week. The currency remained relatively strong even as yields retreated by the end of the week, though it posted losses on Friday despite better-than-expected US gross domestic product.

The euro was volatile after the European Central Bank policy meeting. The currency fell as the ECB lefts its policy unchanged, bounced after ECB President Mario Draghi downplayed the recent negative macroeconomic data, but resumed the downward movement afterwards. Worse-than-expected French GDP was not helping the shared 19-nation currency either, though it managed to end Friday above the opening level.

UK GDP also missed expectations, making the Great Britain pound end the week as one of the weakest currencies.

EUR/USD slid from 1.2277 to 1.2128, and its weekly low was at 1.2055. GBP/USD dived from 1.4000 to 1.3779. USD/JPY rallied from 107.77 to 109.02, touching the weekly high of 109.54.

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