Weekly changes: EURUSD –0.72%, GBPUSD –0.19%, USDCAD +1.33%
The ECB declared some inconsistent steps at its December meeting, leading to fluctuations in the eurozone currency. EURUSD ended on Friday at 1.12357.
The BoE opened the rate race, raising the benchmark from 0.1% to 0.25%. GBPUSD ended the week unchanged at 1.32318 but with ups and downs of 1.5% each way.
The BoC mentioned the likelihood of hiking the rate next month. However, the hawkish statement didn't help the Canadian dollar get stronger. USDCAD rallied to a multi-month high and closed at 1.28900 on Friday.
BULLISH TRIGGERS
USDCAD outperformed all majors by reaching 1.29383, the highest level since August. The previous weakness of the Canadian dollar was due to the rise in number of Omicron cases. This situation implies inflow of funds into safe-haven assets, retreating from the riskier currencies.
BEARISH TRIGGERS
The ECB announced its monetary policy decision by ending tapering towards next March. EURUSD climbed to a monthly high of 1.33742. Later the central bank specified it would hold the low rate and restart the emergency support. EURUSD turned the opposite way and passed the 1.50% drawdown afterwards.
GBPUSD rocketed to the monthly top of 1.3357 upon rating announcement. The next day the British officials released new social restrictions due to the Omicron impact on the economy. GBPUSD fell to 1.32318 and lost all previous gains.
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