Major currencies changed directions several times throughout the week, including the direction of the Euro and USD, but eventually the US dollar depreciated against major currencies including the Euro and YEN. The announcement of ECB along with the Fed and other central banks of the liquidity program may have provided some relief to the Euro as it inclined after a very it had fallen against the USD throughout most of the previous week. The rise in US inflation rate during August, and the flat CPI in Euro Area also may have assisted the Euro/USD to gain back some of its losses during September.
Here is a short review of the changes in major exchange rates including Euro/USD, USD/CAD and GBP/USD during the week of September 12th to September 16th 2011:
Forex Market Weekly summary:
Euro/USD inclined by 0.86% during the week; on the other hand, this week’s average Euro/USD rate reached 1.376, a 1.09% drop from the previous week’s average of 1.391; the Euro to US dollar exchange rate finished the week at 1.366.
GBP/USD, on the other hand, slightly declined by 0.45% during the week; this week’s average GBP /USD rate reached 1.580, a 0.90% decline from the previous week’s average of 1.594.
AUD/ USD also slightly inclined by 0.14% during the week, but this week’s average AUD/ USD rate reached 1.033, a 2.10% decrease from the previous week’s average of 1.055; the Australian dollar to US dollar exchange rate reached 1.047 on Friday.
During the week, the average daily percent change of AUD/USD decreased by -0.21%; EURO/USD inclined by 0.20%.
In the chart below are the changes in selected exchange rates including Euro/USD and GBP/USD during the week of September 12th up to September 16th.
The last chart is of the daily percent changes of selected exchange rates including GBP-USD, EURO/USD and USD/CAD (or in other words the changes around the trend). It shows that the EURO/USD exchange rate inclined during most of the week, until it sharply declined on Friday.