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    The U.S. Dollar was the Big Winner Last Week

    Upon the rise of the U.S. housing data and inflation that both increased the expectation level for a hike in interest rates, the greenback on Friday traded higher versus its major counter peers.

    As last Friday’s data showed that core prices climbed excluding energy and food, the consumer prices in the U.S. escalated 0.3% for the month of June.

    A separate report highlighted that for the month of June, the housing starts in the U.S. reached 1.174 million units, having escalated 9.8%, much higher than analysts’ initial estimations for a 6.2% rise.

    In the meantime, the building permits in the U.S. approached 1.343 million units, having jumped 7.4%.

    Earlier last week, Janet Yellen, the Federal Reserve Chair stated that the central bank was to increase the interest rates by the year end, provided that the economy resumes growing as predicted.

    Furthermore, amid the speculations that the Federal Reserve will perform its first rate rise close to September, the greenback escalated versus the Swiss franc and the yen, with the USD/CHF reaching a 12 week peak and the USD/JPY approaching a three weeks high.

    The EUR/USD reached its weakest level since May after the drop from 1.0831, a 0.41% declination. The euro currency lost versus the U.S. dollar 0.3% during the week and performed its worst eight weeks performance.

    Last Thursday, the euro zone ministers agreed that the European Union-wide fund will support Greece with a bridging loan of €7 billion to keep the nation going.

    In addition, as expectations that the rate appreciation in the UK increased the demand for the nation’s currency, the sterling climbed versus the euro and reached an eight-year high.

    With the Chinese economy somehow losing momentum, the New Zealand, the Australian and the Canadian dollars dropped against their U.S. counter peer toward multi-year lows.

    Moreover, the traders and the investors will mostly focus this week on the U.S.’s jobless claims and homes sales as well as on the timing of the interest rates rise. 

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