The US dollar ended the week mixed but will likely end April as the weakest currency on the Forex market. The reason for the lackluster performance is the fact that many market participants no longer anticipate an early interest rate hike from the Federal Reserve.
The US currency was demonstrating strength previously as traders speculated about a possibility of an early interest rate hike. Yet the recent wave of poor economic data made such event rather unlikely. As a result, the dollar lost its shine to many investors. In the longer term, the greenback retained its support from the outlook for higher rates, but in the short term the currency will likely underperform.
As for the past week, the weakest currency was not the greenback but the New Zealand dollar which has been hurt by the talks about possible reduction of borrowing costs. As for the winners, the strongest currency was the Great Britain pound that received a strong boost from the unexpectedly hawkish policy minutes from the Bank of England.
EUR/USD ticked up from 1.0818 to 1.0867 over the week after reaching the weekly low of 1.0660. GBP/USD climbed from 1.4958 to 1.5179, bouncing from the low of 1.4856. NZD/USD sank from 0.7697 to 0.7599.
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