The US dollar was surprisingly strong during the past trading week, rising against all other most-traded currencies. That is despite the outlook for monetary easing from the Federal Reserve next week.
The greenback got a boost by the end of the week from a better-than-expected GDP print. But that did not change the outlook for a 100% chance of an interest rate cut from the Fed next week. It is possible that the cut had been already priced in, making it harder for the monetary policy outlook to drive the US currency further down significantly.
The Fed was not the only central bank with plans to ease monetary policy. While the European Central Bank did not change its policy during the past week, it signaled that additional quantitative easing is probable.
As was widely expected, Boris Johnson became the new prime minister of Britain. The pound weakened by the weekend after the new PM clashed with the European Union officials about terms of the Brexit deal.
The New Zealand dollar was extremely weak during the past trading week. While it managed to halt its decline on Wednesday when a better-than-expected trade balance came out, the currency was falling for five sessions out of six.
EUR/USD declined from 1.1214 to 1.1127 over the week. GBP/USD dropped from 1.2490 to 1.2382. NZD/USD sank from 0.6763 to 0.6632.
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