The last trading week of the year was not good for the US dollar as the currency was falling against all of its rivals during holiday’s quiet trading, dropping more than 1% against most of them.
As to be expected, there were no major events during the week. With no important new factors to drive the market, analysts were discussing the old news, like the US tax reform and the Federal Reserve’s plans for three interest rate hikes in 2018. But those factors has been priced in already, leaving the greenback without strong supporting factors.
Meanwhile, commodity currencies were among the strongest on the Forex market due to the rally of prices for raw materials. At the same time, the Japanese yen was weak despite signs that some Bank of Japan policy makers were in favor of ending the era of ultra-loose monetary policy.
EUR/USD rallied from 1.1867 to 1.1996. USD/JPY declined from 113.33 to 112.66. USD/CAD dropped from 1.2716 to 1.12582.
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