The US dollar started the week soft, falling against basically all its major peers. But the greenback managed to turn the momentum up following the release of a very positive housing report. Now, the US currency trades either higher, or at least flat versus most of rivals, though the Japanese yen was a major exception.
With plenty of events ahead during the week, investors were reluctant to purchase the dollar. Yet the US housing data changed it, showing a big increase of new home sales. In fact, the sales reached the highest level in a decade.
Not all currencies surrendered to the dollar, though, as the yen maintained its gains versus the US currency. Analysts explained that by signs the era of ultra-loose policy in Japan may be coming to an end.
EUR/USD was up from 1.1924 to 1.1960, the highest level since September 22, intraday but retreated to 1.1900 as of 19:06 GMT today. GBP/USD traded at 1.3318 after opening at 1.3325 and rising to the daily high of 1.3382. At the same time, USD/JPY was down from 111.52 to 111.05, and its daily low of 110.83 was the weakest level since September 15.
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