The dollar continued to remain on the backfoot for another week. However, it was not a one-sided affair. The greenback did fight back to some extent though mixed housing data and the threat for a government shutdown loomed large. It is the bullish comments from some of the Fed officials as regards the economy that helped the currency put up a strong fight. The news from the previous week that China might move away from U.S. Treasuries continued to put pressure on the greenback. However, a correction was also observed, especially in USD/JPY pair. In the euro-zone, European Central Bank officials’ effort to use the strategy ‘talk-down-the-euro’ met with only partial success. As U.K.’s inflation data came out as analysts expected and some amount of calm prevailed on the Brexit front, the pound could stabilize a little bit.
This week brings us GDP from the US and the UK, Rate decision, Monetary Policy Statement and Press Conference in Japan and Europe and many other events await us in a busy week. Furthermore, The US. government shutdown happened after markets closed on Friday, and has yet to take effect.