The U.S. dollar fell sharply during today's trading to a 9-week low against a basket of currencies at 93.83 after breaking the trend line that we referred to, following the shift in the eyes of investors towards the Fed meeting next week.
The markets stabilized to some extent after a strong response to tariffs announced by China and the United States on Tuesday, and as tensions grew between them, traders turned to the U.S. dollar as a safe haven currency amid the strength of U.S. economic data.
The pound hit a two-month high in the wake of positive retail sales figures that exceeded expectations in a sign of a good UK consumer position, and the GBPUSD rose near 1.33 level before retreating to the 1.3240 levels currently.
As risk appetite increased, the New Zealand dollar rose to its highest level since August 30 at 0.6680 in the wake of positive growth data, as GDP grew in the second quarter of 2018 by its fastest pace in two years rising by 1% on quarterly basis and by 2.8% on yearly basis.
The Swiss National Bank (SNB) has kept its easing policy unchanged as widely expected, citing the fragile currency market, trade tensions and global protectionism. The Swiss franc hit its highest level against the U.S. dollar since mid-April as the USDCHF dropped to the level of 0.9589.
