The euro/U.S. dollar currency pair gained 0.777% during the week. The single currency is trading at 1.0987 after a period that was high on political risk with the French presidential elections entering their final stretch. The televised debate between the two candidates was an entertaining affair but failed to change the odds by much.
The U.S. dollar will finish the week ending on April 7 on a high note despite the US non farm payrolls (NFP) missing expectations. The greenback is only lower against the JPY as other major pairs have fallen as risk aversion following the geopolitical events around the globe. The U.S. airstrike against Syria in particular caused a wave of USD selling but as the day went on the currency recovered along with the risk appetite of investors. Members of the G7 will meet in Italy on Monday for a two-day prescheduled meeting that has risen in importance given current events.
The U.S. Dollar appreciated across the board after U.S. Federal Reserve Chair Janet Yellen gave her speech at the Jackson Hole central bank summit with a positive take on the economy. Yellen recapped the upgrades to monetary policy undergone through the crisis of 2008 and felt confident that based on the strength of employment, the outlook is positive for the economy building a case for a rate hike. Missing from the speech was the actual timing of the suggested rate hike.
The U.S. Federal Reserve and the Bank of Japan showed the two sides of central bank action this week. The Fed's Federal Open Market Committee ended with no change to the U.S. benchmark interest rate. The lone dissenter was once again Federal Reserve Bank of Kansas City President Esther George.