The US dollar ended the week mixed as the currency struggled to maintain its upward momentum amid speculations that the dollar’s rally has run its course.
The outlook for an interest rate hike from the Federal Reserve in December continued to support the currency. Yet there were speculations that the event has already been priced in, therefore the greenback should to look for other fundamentals to determine its trend.
One of other important events that will be determining the dollar’s performance in the near term are the US presidential elections. On Friday, a new twist in the Hillary Clinton email scandal appeared as the FBI started to review more emails related to the case. The news hurt Clinton’s chances to win the presidential race. Markets prefer her over Donald Trump due to the view that she represents stability, therefore the dollar tends to react positively to news that increases chance for Clinton’s victory and negatively when it looks like Trump is getting upper hand.
EUR/USD rallied from 1.0880 to 1.0982. USD/CHF dropped from 0.9943 to 0.9876 after rising to the weekly high of 0.9998. USD/JPY was up from 103.82 to 104.70, touching 105.49 during the week — the highest level since the big slump on July 29.
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