The US dollar had a tough week, falling in the first two days to significantly low levels. With little data of its own to stem losses, the US currency fell to four-and-a-half year lows against sterling, and the lowest since mid-March against the euro. Sentiment from the country was improved mid-week, as Chairwoman of the Federal Reserve Janet Yellen stated that the labour market was still improving, but this support ultimately did little to buoy markets. Yesterday then saw significant changes in the world markets, which involved the dollar briefly touching the lowest point since October 2011 against the euro. This was short lived, however, as the euro weakened drastically to put the rate near to the start of the week’s levels following comments from the European Central Bank President following their rate setting meeting.
We saw better-than-expected unemployment claims data from the US, but the subsequent optimism was dampened as Yellen backed the central bank to maintain its stimulus package for as long as necessary. The labour market provides the final data point of interest, with Job Openings data due to round off a labour-centric week.
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