We are in the midst of another stimulus war, and this time the dollar may be one of the better positioned combatants.
The Euro withstood speculative headwinds in the wake of the ECB rate cut, and now find itself in the enviable situation of controlling its own destiny should incoming growth proxy data rebound as forecasted.
The British Pound climbed to a fresh monthly high of 1.6134, with the GBPUSD continuing to close above the 1.5900 handle, and the sterling may continue to track higher next week should the Bank of England (BoE) Minutes highlight a greater willingness to implement the exit strategy ahead of schedule.
Gold prices snapped a two week losing streak with the yellow metal up a fractional 0.02% ahead of the of New York close on Friday.
The Australian Dollar remains driven by external forces, with Chinese economic growth expectations and Federal Reserve policy bets dominating the spotlight.
How does a Currency War affect your FX trading?
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.