At the end of the week, the main currencies showed mixed dynamics. The fall against the US dollar was shown by the New Zealand dollar (-0.53%), the Australian dollar (-0.33%) and the Canadian dollar (-0.21%). The increase was recorded by the Swiss franc (+ 0.36%), the euro (+ 0.53%), the Japanese yen (+ 0.98%) and the British pound (+1.20%). On Monday, the US dollar rose against the yen and the Swiss franc, as the risk appetite began to improve gradually after a hectic week in the hope that large central banks would try to launch new stimulus measures to support their sluggish economy. The optimism about government actions to prevent a recession in the United States, caused by the inversion of the US bond yield curve last week, increased on the eve of the US Federal Reserve Jackson Hole Symposium at the end of the week, where central banks could announce key actions. China has also unveiled interest-rate reforms that are expected to lower the cost of corporate loans, which has helped boost market sentiment, while the prospect that the coalition government of Germany will abandon its balanced budget rule to take on new debt and to take steps to stimulate the economy, also increased risk appetite. On Tuesday, the US dollar fell moderately against major currencies, which was caused by a decrease in US Treasury yields. Market participants were also gearing up for the Fed’s potentially “pigeon” stance at the Jackson Hole Symposium, with many expecting announcements of some measures that would ease concerns about the US recession. Nevertheless, market sentiment was not as disturbing as last week, when the yield curve for US bonds was inverted, which, according to many investors, portends a recession. Meanwhile, the euro rose against the dollar after the Italian prime minister announced his resignation, even though he launched a fierce attack on his own interior minister, Matteo Salvini, accusing him of “sinking” the ruling coalition and jeopardized the economy for personal and political gain. On Wednesday, the US dollar strengthened against the yen and the Swiss franc, as the risk appetite further improved due to the growth of global stocks and US bond yields ahead of the annual sym Fed position at the end of the week and G7 summit this weekend. Market participants were waiting for any statements from the Fed and other global monetary authorities that will meet at the G7 summit on possible measures to stimulate economies around the world. The dollar was also supported by talk of additional costs. US President Trump said his administration is considering lowering payroll taxes as well as profit from the sale of assets. Investors also analyzed the minutes of the Fed meeting. The document said that most Fed leaders considered lowering rates in July a recalibration of policies and not the beginning of a more aggressive cycle of easing them, and at the last FOMC meeting, they were reluctant to predict the future path of rates. On Thursday, the US dollar fell slightly as investors prepared for a possible announcement a statement by the Federal Reserve at an event in Jackson Hole that will help solve the problem of worsening global economic prospects. Market participants expected the Fed announcement to be a stimulating measure or confirmation that the US Central Bank is on a steady path to lower interest rates, and this scenario is considered negative for the dollar. Fed Chairman Powell will speak on Friday, and expectations were based on the fact that he will clarify the Fed protocols issued on Wednesday, and deliver a “pigeon” speech, which will reduce market concerns about the prospect of a recession. Meanwhile, the pound rose sharply against the dollar, updating the August high, due to comments by German Chancellor Angela Merkel. The most influential European leader suggested that the Irish backstop solution, the key stumbling block in the Brexit negotiations, could be found before October 31. On Friday, the US dollar fell sharply against major currencies after President Trump ordered US companies to start looking for an alternative to China after of Beijing introducing additional tariffs on US goods, further exacerbating tensions between the two largest economies in the world in their protracted trade dispute. “Our great American companies are hereby ordered to immediately begin looking for an alternative to China, including returning their companies home and manufacturing their products in the United States,” Trump wrote on Twitter. His tweet followed China’s previous move on Friday, when it announced retaliatory tariffs against US goods worth about $ 75 billion, adding another 10% to existing rates. Trump’s comments also overshadowed Fed Chairman Powell, who did not announce a major stimulus measure to alleviate the deterioration.