The start of the European session saw the US dollar continue to trade gloomily at a nearly eight -week low against a basket of major currencies.
Market optimism about a faster -than -expected global economic recovery has supported market sentiment, with S&P 500 futures rising higher and the U.S. dollar falling despite an increase in 10 -year U.S. bond yields.
The euro led with higher gains amid positive sentiment and declining coronavirus cases in Europe.
Nevertheless, German business sentiment data readings unfortunately missed expectations with an increase of only 96.8 from 97.8.
This caused the euro to trade slightly shaky to maintain its position above 1.2100 against the US dollar.
Meanwhile, the pound continued to hold above 1.39000, supported by market confidence in expectations of a faster -than -expected recovery of the UK economy following its extensive vaccination program.
On the other hand, commodity currencies also displayed gains, in part due to rising copper prices supported by expectations of stronger global demand.
While the market remains positive with the prospect of a growing global economic recovery, however, at the same time the market is also facing pressure from the surge of Covid-19 cases in India which continues to set new records in daily cases.
