The past week witnessed many important forex news, as the US dollar fell against most of the other major currencies at the end of trading on Friday, recording its largest weekly loss in nearly a year. He fired the director of the Federal Bureau of Investigation and disclosed classified information to a Russian diplomat, which raised doubts about Trump's ability to run the affairs of the largest country in the world.
The dollar index, which measures the strength of the US currency's performance against a basket of six major currencies, fell by 0.79% to its lowest level in six months at 97.00, giving up the gains it made after the presidential elections that were held last November.
It is noteworthy that the index fell by more than 5 % to move away from its highest level in fourteen years at 103.82, recorded on the third of last January, and this came after investors lost confidence in the so-called “Trump Trade”.
Over the course of the past week's trading, the index declined by 2.12%, which is the largest weekly loss since July of last year.
It is worth noting that the US currency has been subjected to continuous selling, especially after several important reports indicated that a senior adviser in the White House is interested in investigating alleged Russian interference in the presidential elections that took place last November. The Department of Justice on Wednesday appointed a former director of the Federal Bureau of Investigation as an advisor Special to investigate possible coordination between the “Trump” campaign and Russia.
The appointment of a special lawyer comes after Trump fired the director of the Federal Bureau of Investigation, James Comey, who was investigating Russia's interference in the elections, and stated that he tried to interfere in the judicial process, which led to talk of the possibility of indictment.[banner-group name='bannerforex']
These political tensions that Washington is currently witnessing have severely damaged the dollar, especially in light of the growing fears that the American political system has become engulfed by the crisis, which prevented lawmakers within Congress from implementing tax payments or spending reforms.
Returning to forex news, the euro rose against the US dollar by 0.95% to reach the level of 1.1207 late on Friday, recording its highest level in six months. The dollar ended the week's trading down by 2.5 % against the euro.
The rise of the single European currency comes with the support of investors awaiting the future outlook of monetary policy, especially in light of the decline in concerns about political risks.
Recently, economic data indicated that there are indications that the economic recovery is deepening in the monetary bloc, which indicates that the European Central Bank can quickly reduce its monetary stimulus program.
On the other hand, the US dollar fell against the Japanese yen by 0.2 % to reach the level of 111.25, and the dollar had recorded its first weekly decline in five weeks against the Japanese currency by 1.82 %.
The dollar also fell against the Swiss franc by 0.7 % to trade at 0.9729 late on Friday, hitting its lowest level in six months against the Swiss currency.
The British pound rose against the US dollar by 0.73 % to reach the level of 1.3034 at the end of trading on Friday, and the pound had ended the week's trading, recording an increase of 1.16 % against the US currency.
During this week, global markets are awaiting a lot of important forex news represented in the release of the minutes of the Federal Reserve's meeting scheduled for Wednesday, in order to know any new indications about the future of monetary policy and the gradual raising of US interest rates during this year.
Investors are also awaiting with great interest the release of revised data from the United States on economic growth during the first quarter of this year, and in the euro zone, several important data are scheduled to be revealed about the private sector survey in the region.
Here are the top forex news of the week:
Monday May 22
The financial markets in Canada are scheduled to remain closed due to public holidays in the country, and on the other hand, the finance ministers and central bankers of the Eurogroup countries will hold a meeting in the Belgian capital, “Brussels”.
Tuesday 23 May
It is scheduled to reveal many important data about business activity in the private sector in the eurozone, and the Ifo Institute will issue a report on German economic sentiment, on the other hand, a number of Bank of England officials, led by Governor Mark Carney, will The Bank will present their testimony on inflation and economic expectations before the Treasury Committee of Parliament, Canada will release several important data on wholesale sales, and in the United States is scheduled to release a report on new home sales.
Wednesday 24 May
Mario Draghi, President of the European Central Bank, is scheduled to speak in the Spanish capital, “Madrid”, on the other hand, the Central Bank of Canada will announce the benchmark interest rate, in addition to publishing a statement on policies that determine economic conditions and the factors that would affect In the monetary policy decision, and in the United States a report on existing home sales will be published, the Federal Reserve is also scheduled to release the minutes of its last monetary policy meeting on Wednesday and is likely to provide any new hints regarding the gradual increase in US interest rates during this general.
Thursday 25 May
The UK will release several revised data on the growth of the British economy during the first three months of this year, in addition to releasing several preliminary data on business investment, and the US will publish its weekly report on unemployment claims.
Friday May 26
The United States is scheduled to conclude the week's trading by issuing several important reports on durable goods orders and consumer sentiment, in addition to issuing revised data on the growth of the largest economy in the world during the first quarter of this year.