Market Research: USD

During previous days, the observed currencies managed to go through some notable ups and downs.

However, the YEN, which started the week with the most impetuous appreciation against the background of weakening oil prices and neutral BoJ’s message on the rates, held its position till the end of the observed period and became the leader with the 1.32% growth of the index.

The DOLLAR, in turn, was among the worst performers and, furthermore, found itself outpaced by the former loser GBP Index on Thursday, when the BoE’s decision to leave the interest rate and asset purchasing program untouched helped the domestic currency to improve its positions after Tuesday’s drop on another wave of “Brexit” concerns.
For the dollar the week could be clearly divided into two parts – prior to and post Wednesday’s Fed’s announcements. The former was associated with a steady USD Index recovery after the previous week’s losses provoked by the ECB’s rate decision and following press conference which supported the single currency. Thus, during the first half of the trading week the Greenback’s index gained 1% of the base value. The last days of the period, however, brought significant losses for the US dollar. Shortly after the Fed’s dovish comments and the decision to cut the expected rate target for this year, the dollar’s gauge fell 0.5 points below the baseline and continued its depreciation throughout Thursday, reaching the week’s low of 98.35 points.