US Dollar Ends Week Soft As Market Enters Consolidation Mode

The US dollar, as well as the Japanese yen, was among losers during the past trading week as the investors’ sentiment improved and the market entered a consolidation mode. The Great Britain pound was also among the weakest currencies, while the New Zealand dollar and the Canadian dollar were the strongest ones.
Fears about the situation in Turkey eased a bit, though concerns returned after the United States threatened to slap more sanctions against the country. The fact that trade talks between the USA and China are going to resume also supported traders’ optimism, making them less interested in safer currencies.
The sterling was also weak as the Brexit worries overshadowed robust macroeconomic data. Meanwhile, the kiwi was the strongest, though market analysts speculated that was just a result of traders digesting the recent slump caused by the dovish Reserve Bank of New Zealand. The loonie got support from a solid inflation print, which solidified prospects for an interest rate hike from the Bank of Canada in October or even in September.
EUR/USD rose from 1.1370 to 1.1437, bouncing from the weekly low of 1.1301. USD/JPY rallied from 110.45 to 111.43 during the week but retreated to settle almost unchanged at 110.47 by the weekend. GBP/USD also ended the week basically flat at 1.2740. NZD/USD rallied from 0.6570 to 0.6627. USD/CAD dropped from 1.3164 to 1.3058.

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