The last week, the Forex market saw the end of the February trading session. The dollar witnessed fluctuations as it ended the week with a mixed trading. The rebound of the equities of the US as well as the news that the central bank may shelf its asset-purchasing program steered investors from their secure havens. Now, traders are waiting for the testimony of Federal Reserve Bank chairman before the Congress on its monetary policy.
Meanwhile the Canadian dollar fell against the USD as the world’s 11th largest economy saw a rise in inflation and a huge drop in its retail sales. The FX indices showed that except for NASDAQ all the major stock exchanges of the world ended the week higher.
However, the investors remained wary and with the upcoming Italian elections, the Euro ended the week’s trading with a six week low against the U.S dollar. This came in with the declaration of the Euro zone banks that they would pay less than half of the EUR 61 Billion in emergency loans from ECB. The announcement made many Forex traders worry about the options of the European banking sector.
The Yen saw good trading last week as the Dollar fell with respect to Yen and saw the week closing at 93.97 to the Japanese currency. Yen’s strong showing came as the Bank of Japan is predicted to implement more aggressive easing measures. On the other hand, the Australian Dollar displayed impressive gain against the US Dollar and ended the week on a good note.