The euro experienced a very bad week, falling to the lowest level in almost a year against the US dollar, even though most other major currencies, including the Great Britain pound and the Japanese yen, were rallying versus the greenback.
The euro started the week soft as European Central Bank President Mario Draghi hinted last week at a possibility of another round of stimulus measures. While the German Finance Minister attempted to downplay easing expectations, poor economic indicators were not helping to convince traders that the ECB is not going to ease its monetary policy further. The central bank will conduct its next policy meeting on September 4.
Whatever the case will be, traders were selling the euro en masse. According to the weekly Commitments of Traders report, investors were increasing their short positions, while trimming long ones.
EUR/USD dropped from 1.3194 to 1.3139, touching the weekly low of 1.3133 — the weakest rate since September 6. EUR/JPY declined from 137.58 to 136.70. EUR/GBP sank 1 percent from 0.7969 to 0.7914.
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