Posted April 24, 2017
It may have been a shorter week because of the Easter break, but the depth of the losses suffered by the dollar this week was still something of a surprise.
Today was Easter Monday, the final day of a long weekend. So, there was no trading today.
As the week finally got underway on the currency markets, the US dollar stood at 0.7973 against the British pound. This dipped to 0.7898 by the close of play, mainly driven by the announcement of a snap General Election in Britain. How would this affect trading for the remainder of the week? Elsewhere, the dollar started on 0.9407 against the euro, before falling to 0.9361 today. It was not going to be the best week for the American currency, that much was certain. And this was backed up by a loss against the Swiss franc, too, as the dollar started the day on 1.0052 before dropping to 1.0003.
The US dollar suffered more at the hands of the British pound today, as it was pushed back to 0.7779 by the close of play. Could it now regain any of these early losses as the week pushed on? Another drop was seen against the euro, too, as the dollar slipped further to 0.9324 today. Would there be any good news to impart by the end of the week? The US dollar also dipped below parity with the Swiss franc today, ending on a disappointing 0.9967 today. Where would it go from here?
Finally, the dollar had some good news today. The dollar managed to regain a bit against the pound, pushing ahead to close on a slightly better rate of 0.7810 today. No such news was seen against the euro, though, as the dollar fell to a week-long low of 0.9306 today. Could it claw back anything for the final day of trading tomorrow? The losses may have slowed against the Swiss franc, but they were still evident today as it fell further to 0.9959.
We were hoping for some more good news to close out the week, but while we finished on a lower rate against the British pound, the dollar did at least minimize those losses, finishing on 0.7825 today. The dollar also managed to get back some of the losses it had suffered against the euro, climbing to a closing rate of 0.9347. This was still lower than it had started on though, so it has much to do next week to try and regain that position. The same position was also noted against the Swiss franc. A rise was seen here, taking the dollar to 0.9983, but it was not enough to regain the opening position it had enjoyed earlier in the week. All told, it was a disappointing time for the US dollar, but perhaps some of these losses would be regained during a fresh week. We would soon see for sure.