The beginning of the trading week saw the US dollar growth against the background of the decreased investors’ willingness to take risks. The market participants were negatively influenced by the decision to close the Colonial Banc Group, the financial condition of which was found to be critical. Among the released fundamental statistics we should mention the unexpectedly high level of the index Empire Manufacturing and the increased level of the Net Long-term TIC Flows. On Monday the EUR/USD pair dropped to the trading day minimum in the range of $1.4044.
The UK fundamental statistics, published on Sunday, pressured the sterling on Monday. Particularly, the monthly and yearly Rightmove house prices index showed an unexpected decrease. Therefore the GBP/USD rate dropped to the level of $1,6270.  
Due to the increased demand for the shelter-currencies, the yen demonstrated an increase against its competitors. The released GDP in Japan on Sunday turned out to be at the forecasted level, which supported the national currency.

On Tuesday the dynamics of the main currency pairs changes its direction. The market participants were more interested in the high-risk currencies, therefore, the American dollar rate dropped.  The weak US housing market statistics, which was released on Tuesday, rendered a temporary support to the dollar during the American session. The Euro zone fundamental news, published on Tuesday, supported the euro currencies. The German ZEW survey index (economic sentiments) turned out to be considerably higher compared to the forecast. As a result, the  EUR/USD pair established its maximum in the range of $1.4155. The sterling demonstrated an increase also and the GBP/USD pair reached the $1.6585 level since the retail price index in the Great Britain as well as the consumer price index turned out to be higher than the forecast.
Against the background of the American dollar decrease, the oil prices demonstrated its growth to the $69,00 level per barrel.

On Wednesday the demand for the high-risk assets decreased, which influenced the decrease of the euro rate. It should be mentioned that the yearly and monthly producer prices index in Germany, which was published on Wednesday, demonstrated an unexpected drop. On the same day the Bank of England meeting protocol, which was released on Wednesday, had a negative influence on the sterling.
On Wednesday the oil prices reached its maximum at the level of $70.50 per barrel after the published statistics of the US oil inventories, which demonstrated a decrease.

The unexpectedly high level of the US Philadelphia Fed index, which was published on Thursday, rendered support to the high-risk currencies, and, therefore, the US dollar rate dropped. At the same time, the released US statistical data turned out to be diversified, since the initial jobless claims number happened to be considerably higher compared to the forecasted level and the results of the previous period. Consequently, the EUR/USD pair showed its growth to the range of $1.4274. At the same time the released data regarding the Great Britain budget rendered a negative dynamics to the sterling. Therefore the GBP/USD pair decreased to the $1.6450 mark.

On Friday the euro currencies continued their growth. The released fundamental statistics supported this tendency. The manufacturing PMI indices for France, Germany and the whole European zone turned out to be higher compared to the forecast. And the US secondary housing market sales volume grew as well. Consequently, the EUR/USD pair closed the week in the maximum range of the $1,4375 mark.

 

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