Positive sentiment in the market continued to support major currency trading to trade higher against the weak greenback dollar.
Federal Reserve (Fed) Governor Lael Brainard’s remarks became the focus of the market reaffirming the central bank’s commitment that the economy still has a long way to go to recover and the rise in inflation is only temporary.
The statement has revived market sentiment and put pressure on US dollar trading. Speeches by other Fed officials, Charles Evan and Randal Quarles today will be the next market focus.
The weakness of the US dollar has provided an opportunity for the euro to soar to its highest level since January at the beginning of the European session, with it trading stronger around the 1.22500 price level against the USD.
European Central Bank (ECB) policymaker Yannis Stournaras said the economy remained unstable and stressed there was no risk to high inflation. Therefore, there is no reason to change the measure in its quantitative easing.
Meanwhile, the pound also posted higher gains in the European session, although with price movements still struggling to get back above 1.42000 against the greenback dollar.
Market confidence in the stronger recovery of the UK economy continued to support the strengthening momentum of the pound currency to continue trading around its highest level since February.
