The US dollar was mixed during the past trading week, rising against some most-traded rivals but falling versus others. While the developments in the US-China relations were good, traders were reluctant to buy the greenback ahead of the upcoming Federal Reserve meeting.
Both the United States and China made symbolic gestures that showed they do not want to escalate the trade war further, giving hope that the two countries will be able to find a compromise in the foreseeable future. But traders were more concerned with the Fed monetary policy announcement the next Wednesday. While market participants still anticipate an interest rate cut, CME FedWatch shows that chances for a cut decreased noticeably, though they still are rather high at about 80%.
As was widely expected, the European Central Bank lowered its interest rates and restarted quantitative easing. But the size of both the cut and the asset purchase program was lower than dovish forecasts had been predicting, which gave a boost to the euro.
The Great Britain pound got support from the news that the European Union plans to allow the country to extend the Brexit deadline.
EUR/USD advanced from 1.1026 to 1.1070, bouncing from the weekly low of 1.0927. GBP/USD jumped from 1.2271 to 1.2494. USD/JPY soared from 106.80 to 108.07 over the week.
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