US Dollars Records Losses as Iran Sanction Looms
The USD started the week strongly but started to record some losses after president Trump threatens to quit Iran deal.
Monday, May 7: US Dollar Keeps Climbing
The US Dollar started the day on a strong note and continued to power through, supported by safe-haven demand and a few positive remarks from FOMC members.
EUR/USD dipped from 1.1928 to trade at a low of 1.1897, USD/JPY meanwhile went up to 109.14, USD/CHF went up to finish the day at 1.0020, and AUD/USD dipped to a low of 0.7493.
Tuesday, May 8: Risk Aversion Returns as Trump Quits Iran Deal
The Swiss Franc recorded gains on Tuesday and was able to hold on to those gains as Trump’s announcement drove a flight to safety.
GBP/CHF slipped to trade at 1.3522, AUD/CHF also went down to 0.7458, CHF/JPY slumped to finish the day trading at 109.12, and EUR/CHF dipped to 1.1873.
The comdolls were affected negatively by the risk-off flows, with CAD taking an extra hit from the dip in crude oil price.
AUD/USD slipped to trade at 0.7433, NZD/USD also went down to 0.6955, USD/CAD meanwhile went up to a high of 1.2998, EUR/AUD recovered to trade around the 1.5950 area, EUR/NZD went up to 1.7038, and GBP/CAD also rose to finish the day at 1.7556.
Wednesday, May 9: Rebound in Crude Oil Lifts Loonie
The Yen was the worst performing currency on Wednesday as it returned its safe-haven gains.
USD/JPY started the day at 109.57 before going up to a high of 109.72, EUR/JPY also rallied to 130.48 before dipping later on, and NZD/JPY rose to finish the day at 76.76.
An increase in crude oil prices and risk-taking was largely responsible for the Canadian Dollar recording strong gains. The stronger than expected rebound in Canadian building permits is another catalyst that contributed to the growth of the currency.
USD/CAD dipped to trade at 1.2832, CAD/JPY went up to reach a daily high of 85.45, EUR/CAD meanwhile slumped to 1.5234, and GBP/CAD dipped to 1.7413.
Thursday, May 10: GBP Tumbles after BOE Statement
The Pound was the worst performing currency of the day, with several traders selling the currency after the BOE failed to provide them with any hawkish surprise.
At the trading session this morning, GBP/USD dipped to 1.3530, GBP/JPY also went down to trade at 148.39, and GBP/CHF similarly dipped to 1.3560
The Loonie performed excellently against most of its pairs, with the rise in oil prices the main catalyst behind its rise.
EUR/CAD dipped to trade at 1.5188, GBP/CAD also went down to 1.7295, and NZD/CAD dropped to 0.8859
The dollar recorded losses against the euro, the Japanese yen and a basket of other major currencies.
EUR/USD went up to end the day trading at 1.1914, USD/CAD meanwhile dipped to 1.27685, USD/JPY also dipped to 109.34, and USD/CHF also went down to trade at 1.0018