The beginning of the trading week saw the US dollar strengthening, as a shelter-currency. The leading indicators index for August, which was released on Monday, turned out to be at the previous month’s level, but below the forecast, which also influenced the American dollar consolidation. The US dollar positive dynamics was also a result of the market participants’ expectations for the outcome of the FRS meeting this week.
Due to the demand drop for the high-risk assets’, the euro turned out to be under pressure and the EUR/USD pair showed its minimums around the $1.4610 level, but by the end of the day the euro demonstrated a positive dynamics. On the same day the pound happened to be under pressure thanks to the investors’ expectations, that the Bank of England would leave the principal rate unchanged at the previous low level. And the GBP/USD rate set its minimums at the $1,6130 mark, but later on managed to rehabilitate.
On Monday the financial markets in Japan were closed due to the celebration of the national holidays, which lasted for three following days.
On the first day of the trading week due to the US dollar strengthening, the oil prices decreased to the level of $70.66 per barrel. And due to the reduction at the stock markets, the oil rate dropped to the $66 mark per barrel. The gold rate decreased to the $ 995.5 mark per ounce. And the silver price dropped to its minimum of $16.470 per ounce.

On Tuesday the demand for the high-risk currencies increased, and the US dollar started to drop and reached its minimum levels against the major currencies. The dollar was also pressured by the speculations regarding the results of the G20 leaders’ meeting. And the signs of the world economy rehabilitation supported the high-risk currencies.
The Richmond Federal manufacturing index, which was published on Tuesday, turned out to be at the same level of the previous period, but lower than the forecast, which did not have any influence on the dollar dynamics. The EUR/USD pair set its maximum at the level of $1.4820.

The diverse trading dynamics of the US dollar on Wednesday was an outcome of the market participants’ expectations of the FRS meeting results publication. According to the released FRS meeting data, the principal rate was left unchanged at the previous level of 0.25%, and probably would stay at the low level for continuous period. It has been announced that the economic activity grew, but still considered to be rather weak. The results of the FRS meeting lead to the drop of the American dollar against the major currencies.
Due to the speculations regarding the soonest rehabilitation of the world economy, the demand for the high-risk assets grew. Therefore, the euro demonstrated its maximums against the American dollar. And the PMI services and manufacturing indices for the Euro-zone, which were published on Wednesday, did not show any significant changes, thus, did not have any influence on the euro dynamics. Consequently, the EUR/USD pair established its maximum at the level of $1.4843.
After the release of the Bank of England minutes of the meeting, the pound showed a sharp growth against the American dollar. Particularly, the pound increase was influenced by the decision to leave the volumes of the government bonds buy-out unchanged. And the GBP/USD rate reached the levels around the $1.6450 mark.
The growth of the US oil inventories, released on Wednesday, resulted in the drop of the “black gold” rate. The oil price decreased to the $68 per barrel.
On Thursday the US dollar continued to be under pressure due to the results of the FRS meeting, which were announced on Wednesday. During the second part of the day the American dollar dynamics changed. The initial jobless claims volume turned to be lower, than the forecast and the previous period level. But the existing home sales demonstrated an unexpected decrease: its level dropped for 2.7% while the experts forecasted the increase for 2.1%. The market reacted immediately. The demand for the shelter-currencies grew and the American dollar rate increased.
The IFO – Business climate indicator in Germany for September, which was released on Thursday, demonstrated growth compared to the previous month. Particularly, the indicator turned out to be at the 91.3 level, when the previous month volume was at the 90.5 mark. This fact rendered support for the euro against the US dollar. On Thursday the market participants were under pressure of the expectations regarding the G20 members’ meeting results. The EUR/USD pair showed its trading day maximum at the level of $1.4801, but decreased to $1.4626 by the end of the day.
The sterling turned out to be under pressure after the statement of Mervin King regarding the fact that the pound decrease was necessary for the national economy. Consequently, the GBP/USD pair established its trading day minimum around the $1.6021 level.
The yen strengthened against major currencies due to the fact that the financial semi-annual period would be over very soon in Japan. The USD/JPY pair dropped sharply to the Y90.34 level, but then rehabilitated.
On the last day of the trading week some negative US economic indicators were published, which influenced the trading dynamics. The durable goods orders level demonstrated a sharp decrease compared to the forecast and the previous month’s volume. And the new home sales also turned out to be lower than the expectations and the previous period. Therefore, the American dollar, as a shelter-currency, received support against the European currencies.

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