The euro ended the past trading week as the second strongest major currency. The only currency that outperformed the euro was the Canadian dollar.
Interestingly enough, both currencies logged most of their gains on Friday. The euro rallied after the European Union members managed to achieve an agreement that tackles Europe’s migration problem. The Canadian dollar also had its share of positive factors, including strong domestic macroeconomic data and a rally of prices for crude oil.
Over the longer term, though, the loonie remained under pressure from uncertainty whether the Bank of Canada is going to raise interest rates in the near future. The Great Britain pound faced the same problem, especially after the newest voting member of the Bank of England made dovish comments. And the New Zealand dollar met the similar dilemma too, though in its case the situation was even worse as the Reserve Bank of New Zealand did not rule out an interest rate cut. Meanwhile, the Federal Reserve was planning for two more rate hikes this year, giving the US dollar strong support.
As for other news, Recep Tayyip Erdogan retained his presidential seat after the election. That boosted the Turkish lira, though market analysts said that the rally will not last long.
EUR/USD was down from 1.1662 to 1.1527 during the week but bounced to close at 1.1683. EUR/GBP advanced from 0.8793 to 0.8844, touching the weekly high of 0.8891. EUR/CAD dropped from 1.5474 to 1.5336 following the rally to the high of 1.5585.
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