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USD: worst week in months

FXStreet (Córdoba) - The US dollar finished the week lower across the board and was among the worst performers in the currency. The Dollar Index (DXY) reversed sharply from above 100.00 and finished the week with a decline of almost 2%. Greenback’s decline accelerated on Thursday after the European Central Bank decision and Draghi’s press conference.

The decline created a significant correction in many USD crosses after several weeks of constant gains. The most notable rally was EUR/USD, that jumped from 1.0530 to 1.0980 and finished above 1.0850. The other currencies that rose the most against USD, were the Swiss franc (USD/CHF lost more than 300 pips) and the New Zealand dollar (NZD/USD gained 3.50%).

It was the first significant bearish correction for the US dollar since August and pushed many crosses to break important technical levels. There were no significant fundamental data that triggered the decline. In fact employment numbers surpassed market consensus and rate hike expectations for a lift-off in December are high and well anchored.

Among the most traded currencies, only the Russian ruble and the Colombian peso failed to rise against the US dollar. Lower crude oil prices weakened the mentioned currencies, that fell sharply.

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