Dollar Demonstrates Mixed Week on Uncertainties

The US dollar posted a mixed week against the other currencies on Forex, as the investors didn’t seem to be certain of which direction to choose on worsening of the economic situation and intervention threats from Japan.

The dollar fell for a first week in three against the euro and declined for a second week against the Japanese yen. Against the Great Britain pound, the greenback managed to grow for a third week in a row but the gain was minimal this time. The poor macroeconomic releases from US that signaled about a slower recovery and pushed back the future interest rate hikes were the main drivers for the dollar bears this week.

The US dollar failed to gain against the Japanese yen even despite the expected currency intervention there, which has been a major news topic of the week. A slight increase against the GBP can be seen as the result of some moderate risk-aversion seen this week. The analysts believe that if the next week we’ll continue seeing the same levels of pessimism in the fundamental reports in the United States, the dollar will continue going down against the majors.

EUR/USD rose from 1.2705 to 1.2760 after touching as low as 1.2588 this week. USD/JPY went down from 85.60 to 85.20, while the drop on GBP/USD was from 1.5538 to 1.5525.

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