The US dollar rallied this week and ended the month with gains against the majority of its most-traded peers as speculations about potential quantitative easing tampering in September continued to push the currency up.
As was expected, the dollar was unsure where to go at the start of the week and was unable to maintain rally. Yet it quickly found a reason to resume its advance: a potential war in Syria. Of course, positive domestic fundamentals also played in favor of the US currency, increasing likelihood of QE reduction next month. Concerns about Syria eased by the weekend, but this did not prevent the greenback from retaining gains.
USD was trading sideways versus EUR as the week began, but dropped sharply in the second half. The currency’s movement against GDP was more straightforward as it was rising for almost the whole week. USD demonstrated different performance versus JPY as it plunged on Tuesday and was attempting to rally for the rest of week. USD/JPY ended the week with relatively small loss, but loss nonetheless.
EUR/USD sank from 1.3382 to 1.3215 over the week. GBP/USD was down from 1.5562 to 1.5495, while its weekly low was at 1.5426. USD/JPY slid from 98.54 to 96.81, but bounced to close at 98.16.
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