US Dollar Enters Consolidation, Ending Week Flat

The US dollar entered a consolidation mode, ending the week flat against most of its major rivals. As for other currencies, the Canadian dollar and the Great Britain pound were the strongest, while the New Zealand dollar ended the week extremely soft.

The greenback was rising in the first half of the week, but reversed the rally after consumer inflation data came out weaker than was expected. Still, the currency remained supported by the policy outlook.

The rally of crude oil helped the Canadian dollar, allowing the currency to withstand the negative impact of worse-than-expected employment data.

The Bank of England policy announcement hurt the sterling, but a May interest rate hike was priced out anyway, and market analysts speculated that it allowed the currency to avoid big losses.

Meanwhile, the New Zealand dollar was seriously hurt by the policy announcement from New Zealand’s central bank, ending the week broadly lower.

EUR/USD ended the week at 1.1941 after opening at 1.1959 and falling to the weekly low of 1.1823. GBP/USD closed flat at 1.3538. USD/CAD slid from 1.2844 to 1.2795 after touching the weekly high of 1.2997. NZD/USD dropped from 0.7019 to 0.6962, touching the low of 0.6902 during the week.

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