The greenback has been rallying since last Friday. Strong U.S. data have rekindled the appetite for the dollar, which recorded its best daily performance in nearly two months.
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Supported by growing evidence that the easing of pandemic restrictions is underpinning UK growth, the GBP/USD pair has resumed its upward trend.
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The Euro ended the week on a lower note despite a smaller than expected decline in Eurozone GDP, a higher than expected inflation rate, and a falling unemployment rate. The EUR/USD was down 0.84% by market close on Friday.
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The EURUSD hit a two-month high overnight on Wednesday, with the dollar falling slightly following the Fed's rather dovish statement and speech by Jerome Powell regarding the inflation outlook.
Gold prices have shown signs of weakness on Wednesday as long-term rates rebound.
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The picture on the Forex market today is quite striking, apart from the Yen which is weakening by -0.60% against the dollar and -0.40% against the Euro, no gap exceeds 0.10% on the main currency pairs.
The greenback began the week on a negative note, falling to a nearly two-month low of 90.80 after recording its third consecutive week of declines last week.
The euro rose against the dollar Friday to its highest level in seven weeks as traders weighed Washington's plans for a capital gains tax, revealed in the press, ahead of a Fed monetary meeting next week.
Bitcoin continues to deepen its losses on Wednesday with a pullback towards $56,000.
The price of gold hit a nearly two-month high of $1,790 on Monday before retreating to $1,770 as U.S. long-term rates rebounded.
The British pound climbed on Monday against a weakening U.S. dollar as traders regained confidence in the British currency as the U.K.'s deconfinement progressed.
The euro remained stable against the dollar on Friday, in a foreign exchange market without conviction, the greenback remaining close to its lowest in a month against the single European currency.
The price of gold is rising on Thursday, as the yield on 10-year U.S. Treasuries is falling again, down 15 basis points from its March 23 peak of 1.776%.
Denigrated by its opponents for its volatility and speculative nature, Bitcoin, which keeps breaking records, can have its uses within a multi-asset portfolio, says Robeco.
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