The US dollar was broadly lower this week against most currencies, including the Japanese yen, which was unexpectedly strong. Traders were selling dollar ahead of next week’s meeting of the Federal Reserve members.
Without any important event during the current week, traders were focusing on the future and speculating if the US central bank maintains stimulus or no. The Fed members will meet next week and will announce their decision on July 31. The gathering is expected to be uneventful and the central bank is not likely to make any major move before September. Non-farm payrolls will likely be more important factor for the dollar next week.
Another important event next week will be meeting of the European Central Bank and Bank of England policy makers. No changes to policies are expected, but comments of the central banks’ leaders may affect the Forex market.
EUR/USD jumped from 1.3135 to 1.3281 this week (the highest closing price since June 19).GBP/USD advanced from 1.5263 to 1.5387 and its weekly high of 1.5433 was strongest since June 26. USD/JPY slipped from 100.44 to 98.14, touching the lowest since June 27.
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Dollar Soft Ahead of Fed Meeting
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