The currency market was a roller coaster this week as currencies were swinging up and down on political turmoil in various parts of the world. The US dollar ended the week as one of the weakest currencies despite the very positive employment report.
The main theme at the start of the week was political turmoil in Europe. Later, concerns about the situation eased and a trade war between the United States and their allies grabbed attention of traders.
As for this week’s macroeconomic data, surprisingly positive US nonfarm payrolls boosted the dollar on Friday, but not enough to prevent weekly losses. Meanwhile, relatively good economic data in the eurozone helped the euro to trim losses that it logged at the start of the week. The same happened to the Great Britain pound, which found support from the Friday’s release of a manufacturing report.
The Bank of Canada kept interest rates on hold this week but issued an optimistic policy statement, bolstering the Canadian dollar.
EUR/USD was down from 1.1684 to 1.1510 during the week but managed to close at 1.1658. GBP/USD opened at 1.3311, fell to the weekly low of 1.3204, but bounced to close at 1.3334. USD/CAD was little changed at 1.2947.
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