Through Friday’s close, the dollar has dropped for five consecutive weeks (the longest slide in three years) and probed a five-month low.
The Euro saw a dip late-week but overall remains supported by a less dovish than expected ECB. A steadying in Euro-Zone data will prevent further accommodative policy action, which will only help the Euro as it will be a sign of an economically improving Europe.
The Japanese Yen is at the mercy of US fiscal and monetary policy trends as the government remains shuttered and investors ponder the Fed’s intent to “taper” QE.
The British Pound surged to fresh year-to-date highs only to finish lower versus the US Dollar, suggesting that the previously high-flying Sterling may have set an important top through recent trading.
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Written by the DailyFX Research Team. To sign up for a weekly e-mail with our currency outlooks, go to our page for forex news delivered to your inbox.
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