The US dollar fell during the past trading week as traders continue to speculate whether the Federal Reserve is going to raise interest rates this year. The greenback demonstrated bigger losses versus its major counterparts and smaller versus the commodity-related ones.
Fed Chairperson Janet Yellen was speaking this week, suggesting that monetary tightening will continue in 2016, albeit perhaps with slower pace than was initially planned. Yet the tone of her comments was so cautious that market participants remained in doubt if she would be able to fulfill her promised. This made dollar longs fall to the lowest level in more than a year.
While the Fed considers raising rates, many other central banks are cutting them. The Swedish central bank performed a rate cut this week, and traders speculate that central banks of other European naitons, like the Swiss National Bank, may follow suit.
EUR/USD rose from 1.1142 to 1.1254 over the week. USD/CHF dropped from 0.9921 to 0.9764. AUD/USD ticked up from 0.7068 to 0.7100.
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