US Dollar Ends Week with Losses due to Dovish Fed

The US dollar fell against most of major counterparts during the past trading week largely due to the relatively dovish stance of the Federal Reserve. The losses were not particularly big, though.
In its statement, the Fed talked about being “patient” in adjusting monetary policy. That led to to speculations that the central bank will delay additional interest rate hikes and may perform fewer hikes this year than was previously anticipated. Such outlook hurt the dollar. Mixed nonfarm payrolls damaged the currency even more.
The greenback was not the weakest currency, though, as the Great Britain pound took that place due to uncertainties associated with the Brexit.
Commodity currencies, on the other hand, were strong even as China’s manufacturing sector showed contraction. Usually bad news from the world’s second biggest economy hurts riskier currencies linked to raw materials, but this week that was not the case. China’s better-than-expected official data may explain such phenomenon.
EUR/USD gained from 1.1401 to 1.1455, touching the high of 1.1514 during the week. GBP/USD dropped from 1.3183 to 1.3073. AUD/USD rallied from 0.7175 to 0.7249 over the week.

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