Mixed Performance for the Greenback
The USD experienced mixed performance this week as it went up following Powell remarks before reversing its gains on Trump’s comments.
Tuesday, July 17: Dollar Rallies on Powell’s Remarks, GBP Falls Behind
The US dollar continued its climb on Tuesday as Fed Chair Powell expressed confidence in the U.S. economy and data was available to support his optimistic views.
USD/JPY went up from 112.39 to 112.89, USD/CHF also rose from .9934 to parity, AUD/USD meanwhile dipped to 0.7380, and EUR/USD also sipped down to 1.1654.
PM Theresa May was able to manage a victory in the Trade Bill customs union vote, the Sterling bulls weren’t convinced that the Brexit drama could be resolved that easily.
GBP/USD dipped from 1.3240 to a session low of 1.3069, GBP/JPY also dipped from 148.98 to a daily low of 147.64, and EUR/GBP went up to a daily high of 0.8914.
Wednesday, July 18: GBP Bounces on Article 50 Extension Rumors
The Sterling was able to record gains amid rumors that the Article 50 deadline might be extended.
GBP/USD started from a low of 1.3023 to end the day at 1.3077, GBP/JPY was trading at a low of 147.23 before rising to a high of 147.67, and EUR/GBP slipped to a low of 0.8899 after rising to a high of 0.8932.
The greenback wasn’t able to hold on to some of its gains as Powell expressed some concerns about weak inflation while a bit of risk-taking returned.
USD/JPY started at a low of 112.99 before slipping down to 112.67, USD/CHF also slipped to 0.9984, and EUR/USD went up to 1.1651.
Thursday, July 19: Dollar Up on Good Data, Reverses on Trump’s Comments
The USD started strongly before retreating during the U.S session. It was still able to end the day on a positive note, losing only against the yen and the euro.
EUR/USD slipped to a daily low of 1.1574 before recovering to 1.1679, USD/JPY hit a high of 113.18 before retreating to a low of 112.05, and USD/CHF dipped from 1.0020 to end the day at a low of 0.9958.
The safe-haven Yen took full advantage of greenback jitters and risk aversion, to end the day at the top of the forex heap.
GBP/JPY slipped to end the day at 146.33, EUR/JPY dipped from 131.17 to end at a low of 130.93, and CHF/JPY also slipped to the 112.50 area.
Friday, July 20: USD Extends Slide
The USD showed signs of weakness at the start of the day and went on to record some losses despite a small recovery. CNBC released its full interview with President Trump after which the greenback resumed its slide.
USD/JPY dipped to 112.26, and USD/CHF also went down to trade at 0.9970
The Sterling was the second best-performing currency, with no apparent catalyst for the positive movement.
Despite that, the currency ended up as the biggest loser of the week, with some analysts considering the recent positive movement as short-covering by GBP bears.
GBP/USD rose to 1.3044, GBP/AUD also went up to trade at 1.7684, and GBP/NZD went up to 1.9284