The US dollar managed to post huge gains against the euro and the Great Britain pound today even during a holiday in the United States. The currency also outperformed the Japanese yen, which rallied against the currencies of the eurozone and Britain too.
It is Independence Day in the USA today and trading was expected to be quiet. Yet today’s trading session was anything but uneventful.
One could say that big moves should be expected on a day when two major central banks announce their policy decisions, but no changes to monetary policies were expected. Indeed, the European Central Bank and the Bank of England kept their interest rates the same, but the statements promised that monetary accommodation will be prolonged and made the euro and the sterling tumble. The dollar profited from this.
EUR/USD slid from 1.3008 to 1.2901 as of 23:12 GMT today. GBP/USD went down from 1.5275 to 1.5032, trading near the lowest level since May 29. USD/JPY was up from 99.87 to 100.24, paring the drop to 99.48.
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