Unexpectedly high bets on rate increases from the US Federal Reserve later in the year pushed the yellow metal noticeably down against the American currency.
USD/JPY keeps consolidating within the boundaries of the symmetrical triangle.
Bullishness of the Cable that we have been observing since the beginning of March proved to be insufficient to carry the price over the monthly R1.
EUR/USD ended the Monday session with a slight loss of about 35 pips, as it touched the 1.11 mark where a declined was ultimately stopped.
The New Zealand Dollar's performance was similar to its Australian counterpart's, as the NZD/USD currency pair rallied 80 pips, but in this case was unable to breach the closest monthly pivot, namely the monthly R1.
"The [FOMC] meeting could see an acknowledgement of slightly improved conditions ... the Fed wants to make sure these developments have taken hold before acting. Such a dovish message could see downward pressure on the dollar." - Citi (based on CNBC) Pair's Outlook As was anticipated, the US Dollar weakened against the Loonie at the end of the previous week, but with losses
The Australian currency soared against the US Dollar on Friday, amid a sharp rebound in oil prices.
Although the Euro appreciated against the Japanese Yen on Friday, as the expected correction was delayed.
On Friday the bullion was out of power to hold to earlier post-ECB gains, as the price eased to the 1,250 mark from intraday peaks above 1,270.
Even though the US Dollar outperformed the Japanese Yen on Friday, the exchange rate remained between the 112.00 and 114.00, namely within its consolidation range.
The Sterling refuses to edge lower and appears to be headed towards the resistance line above 1.49.
As we are entering the vital FOMC-led week today, the outlook for EUR/USD remains cautiously optimistic, particularly because the Fed is not forecasted to raise interest rates.
On Thursday, the USD/CAD currency pair went over the 1.33 level, despite a strong supply area bolstering it.
The Aussie weakened against its American counterpart on Thursday, amid a decrease in oil prices.
Despite ECB's decision to cut rates, the Euro skyrocketed 185 pips after Mario Draghi's statement yesterday, with the third resistance, the weekly R1, limiting the gains.
The Kiwi managed to remain elevated against the US currency yesterday, after experienced rather high volatility.
A broad buoyant sentiment pushed the precious metal to fresh 13-month highs by Friday morning.
The American Dollar weakened against the safe haven Yen on Thursday, retreating from its one-week high, amid the sudden return of risk aversion, caused by ECB Draghi's statement.
Yesterday's ECB's rate decision had an impact on other currency pairs, such as the GBP/USD.
Markets finished the trading session yesterday in a slightly disappointing mood, which ultimately sent the EUR/USD cross as high as the second weekly resistance at 1.1176.
"In view of the lack of price pressure in the economy and since the NZD is still overvalued on several measures, we expect a dovish policy statement from the RBNZ this evening and look for a softer tone in NZD/USD to re-emerge in the coming weeks. We forecast a move towards 0.61 on a 12 mth view."- Rabobank (based on
The US Dollar suffered serious losses against its Canadian counterpart on Wednesday, amid a sharp increase in oil prices and the BoC leaving its key rate unchanged.
The AUD/USD currency pair not only erased Tuesday's losses yesterday, but even reached a fresh eight-month high at 0.7528.
The Euro was bought off yesterday in anticipation of the ECB's rate bid decision today and, consequently, completely recovered from the intraday lows.