The US dollar ended the week broadly weaker against its most-traded rivals as the positive market sentiment and disappointing macroeconomic data made the currency less attractive to investors.
Signs that the United States and China are going to resume trade negotiations sparked optimism among Forex traders, limiting their demand for safer currencies, like the greenback. Disappointing prints for both producer and consumer inflation hammered the dollar further. The currency bounced by Friday, though, after US President Donald Trump tweeted, saying that “we are under no pressure to make a deal with China.”
As was largely expected, the policy meetings of the European Central Bank and the Bank of England were largely non-events. The central bank of Turkey, though, surprised markets, hiking interest rates more than was expected.
The Great Britain pound got some support from renewed hopes for a Brexit deal. The Canadian dollar ended the week as one of the strongest currencies, bolstered by rising prices for crude oil.
EUR/USD rallied from 1.1550 to 1.1620, though retreated from the daily high of 1.1721. GBP/USD gained from 1.2920 to 1.3061, and its weekly high was at 1.3143. USD/CAD declined from 1.3161 to 1.3038.
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