Currencies
MARKET VIEW
Weekly changes: EURUSD +0.07%, GBPUSD +0.33%, USDCAD –0.78%
EURUSD closed the week at 1.13130. The pair hasn't changed since last week, as the forthcoming meetings of the American and the eurozone central banks put the trading activity on hold.
GBPUSD rose to 1.32658 by Friday. The 0.65% intraday growth slowed the pair's second half of 2021's ongoing decline.
USDCAD declined by 1.7% to 1.26025 by Wednesday and made a u-turn to 1.27208 due to the crude oil rally.
BULLISH TRIGGERS
EURUSD awaits the central bank's decisions. The Fed and the ECB have opposing preliminary tones of voices. Due to this, investors anticipate significant volatility upon the final solutions of central banks.
In the meantime, the American CPI report made the U.S.dollar slip against a basket of currencies to 96.05. EURUSD reached its semi-annual low at 1.11824, and the pair might extend its further decline to 1.10.
GBPUSD has declined by more than 6% since June. By Wednesday, it touched the current year's low of 1.31596. The recent developments around the new COVID variants bring uncertainties to the terms of the possible rate hikes by the BoE. The ongoing Brexit dispute also weighs upon the British pound.
BEARISH TRIGGERS
USDCAD declined to 1.26025 by Wednesday, its lowest in three weeks. But later, the BoC had disappointed investors by leaving its key rate unchanged, despite the elevated inflation in the country.
The Canadian dollar pulled back from its strongest level, and the pair had made a 1% rise afterwards. Moreover, oil prices grew as concerns over Omicron fears eased, boosting USCAD dynamics.
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