The Forex market last week witnessed quite a number of fluctuations as far as the US Dollar is concerned. Owing to the global position and significance of the US currency, the Dollar has a lot of options to regain its standard. It has gained a positive acclamation after the President of European Central Bank’s announcement.
As soon Mario Draghi announced that economic weaknesses will persist in the Euro zone in the first half on this year, there has been a hike in the demand for safe and liquid greenback. As a result, the Euro has moved to a weaker position compared to previous weeks. Going by the report of the US trade market, US trade deficit had narrowed down further.
The trade imbalance is anticipated to further contract thus enhancing the brokers’ and investors’ confidence. In a similar note, the Chinese trade deficit increased owing to an enormous surge in imports. In the last week the Forex trading in the Japanese Yen market, against US dollar, also experienced some variations. Following the Japanese Finance Minister’s confession about the increased pace of yen’s weakening trend, the FX rate, USD/JPY, experienced a fall. Observing the frequent ups and downs in this market, the Japanese Prime Minister has asked to keep up a tolerance level of inflation and undertaken policies to prioritize growth.
However, the yen has landed in better place against Euro and Pound. According to recent reports, the US dollar has won against its Canadian counterpart. On the other side, the pound versus dollar has hit an all-time high since the beginning of this February.