The Performance of Selected Currencies This Week

  • EUR/USD rose to this week’s high on Thursday at 1.2242 and dropped on Friday to a low of 1.2061 by the end of the day.
  • XAU/USD dropped to its week’s low on Friday to 1716 from a high of 1816 on Tuesday.
  • The Euro rose in value against some major currencies such as CAD, AUD, and NZD.

US Dollar (USD)

This week, the value of the USD has risen. Considering that gold and the US Dollar move opposite to one another, the likelihood of the value of gold dropping is there and it did drop. Gold is mostly traded in US Dollars. In this situation, few dollars are needed to purchase gold measured in ounces.

The reason for the rise in the value of the USD was the rise in treasury yields. Treasury yields are the earnings you get when you own debt instruments issued by the government in exchange for your money. The government is loaned money by investors. These debt instruments mature in different time lengths. Some of them include; treasury bills, treasury notes, and treasury bonds.

Treasury yields increase when there is less demand for the debt instruments from investors while high demand reduces the treasury yields. Investing in treasuries is considered to be of low risk because of the guarantee from the U.S government.

The US Dollar gained value over other major currencies. For example;

  • On Thursday, as a result of the rise in treasury yields, the US Dollar gained value over the Euro (EUR), British Pound (GBP), Canadian Dollar (CAD), Australian Dollar (AUD), New Zealand Dollar (NZD).
  • There was a steady rise in USD value against the Japanese Yen (JPY) and the Swiss Franc (CHF) from Tuesday to the end of Friday.

Euro (EUR)

The Euro gained in value against other major currencies except for the USD.

  • EUR/JPY reached its lowest at 127.50 on Monday and rose to its highest on Thursday at 129.98 but the price dropped by the end of the week.
  • EUR/CHF lowest point was 1.0852 with its highest point at 1.1098 on Thursday.
  • Both the EUR/CAD and EUR/NZD started the week on a downward trend in the 1-hour timeframe but the prices started rising from Thursday reaching their peaks for that week on Friday.
  • The lowest point for EUR/GBP this week was 0.8538 with the price rising afterwards to the week’s high of 0.8730.
  • The Euro gained value against the AUD. The currency pair’s price rose to its highest point at 1.5692 on Friday.

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