The euro was strong during the past trading week due to the statement of the European Central Bank, which market participants considered to be hawkish. The pair finished the previous week at 1.1664.
Comments of ECB President Mario Draghi after the policy meeting had something both for the doves as well as for the hawks. Yet markets focused on the hawkish part of his speech, believing that the mention of quantitative easing discussion in fall means that the central bank may start QE tapering as soon as September.
The US dollar was weakened by inability of US President Donald Trump to implement planned reforms. The Great Britain pound suffered from the bad inflation reading, which hurt prospects for monetary tightening from the Bank of England. The Australian dollar was volatile as the Reserve Bank of Australia was sending mixed signals about its plans for monetary policy.
EUR/USD jumped 1.7% from 1.1472 to 1.1664, touching the highest level in two years during the week. EUR/GBP soared as much as 2.4% from 0.8761 to 0.8973. EUR/AUD rallied from 1.4655 to 1.4736, bouncing from the weekly low of 1.4419.
This post was originally published by EarnForex