Session Recap: The week of the USD (and the AUD)

By FXstreet.com | August 22, 2014 AAA

FXStreet (Córdoba) - The US dollar and the Aussie were the best performers during the week and posted gains across the board also on Friday. The Yen was the opposite and tumbled as the USD/JPY rose to 104.00 and US treasury yields rose.

European currencies were the worst performers, particularly the Euro.The EUR/USD posted the lowest weekly close since September 2013 and finished Friday below 1.3250. The USD/CHF rose to the 2014 highs but failed to break above 0.9150/55 and ended trading around 0.9135/40.

The GBP/USD hit a fresh monthly low at 1.6560 but then bounced to the upside, and moved all day below 1.6600. The GBP/CHF rose on Friday and finished the week slightly higher around 1.5145 while th EUR/GBP retreated on the last day of the week to end below 0.8000.

Among commodity currencies the Aussie was the best performer on Friday and also during the week. The AUD/USD ended above 0.9300 far from weekly lows while the AUD/NZD failed to break above 1.1100 but posted the strongest close since November.

Janet Yellen did not surprise markets on Friday and in Jackson Hole repeated the tone of the FOMC minutes, released on Wednesday, suggesting that if economic variables (inflation and employment) move faster toward long term goals, the FED could rise rates sooner. The Chairwoman also mentioned that FED’s officials still see significant labor slack.

Main headlines in the American session

EUR/USD makes fresh 2014 lows on Yellen remarks

Fed Yellen offers no surprises at Jackson Hole

USD/CHF testing 2014 highs

EUR/USD makes fresh 2014 lows on Yellen remarks

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