The trading week concluded with a notable decline in the USD. The EURUSD increased by 466 pips or 4.49%, marking the largest percentage movement since March 2009.
The USDJPY decreased by 255 pips or 1.70%. Meanwhile, the GBPUSD rose by 342 pips or 2.71%, representing the most significant shift since November 2022.
Usdchf And Usdcad Movements
The USDCHF fell by 224 pips or 2.48%, the largest change since the week of July 29, 2024. The USDCAD was down by 93 pips or 0.64%, with its decline being less pronounced due to tariff concerns.
Additionally, the AUDUSD increased by 107 pips or 1.68%, and the NZDUSD rose by 116 pips or 2.07%.
The substantial weakening of the dollar shaped the direction of all major currency pairs this week. With the EURUSD seeing its sharpest percentage rise in over a decade, the magnitude of this movement cannot be understated. Such a shift points to broad-based adjustments in trader positioning and sentiment. When any currency moves this much in such a short time, it is often driven by factors beyond routine fluctuations. Similar dynamics played out across other pairs, with the pound exhibiting the most pronounced weekly advance since late 2022.
Looking at USDJPY, the 255-pip drop suggests a shift in demand, reflecting changing expectations regarding relative interest rates or broader risk sentiment. It was not the most dramatic move of the week, but the steady decline signals something more than just routine repositioning. The Swiss franc also saw its most forceful move since late July, suggesting capital flowing away from the dollar into traditional safe-haven assets. Meanwhile, the loonie’s decline versus the greenback was less notable. Existing concerns over trade policies likely counterbalanced the broader downturn, muting what may have otherwise been a steeper drop.
Performance Of Australian And New Zealand Dollars
Apart from the major pairs, the Australian and New Zealand dollars both benefited from the dollar’s weakening, posting firm gains. While these advances were not as extreme, they were still reflective of the same pattern playing out globally. The Aussie and Kiwi tend to be more closely tied to risk sentiment and commodity cycles, adding further weight to the argument that last week’s action stemmed from more than just one-off movements.
When traders see shifts of this magnitude, it often means existing assumptions on macroeconomic conditions are being challenged. A change of this scale does not happen in isolation. If the present momentum carries into the coming sessions, it will require a reassessment of positioning and risk exposure. Large moves tend to trigger a chain reaction, as stops are hit and hedging strategies shift. Staying adaptive will be key.
