Surely Someone Is Asking, Why Can The USD Rise Back? - Kakiforex.com - Financial Market Media No. 1 in the World Surely Someone Is Asking, Why Can The USD Rise Back? Surely Someone Is Asking, Why Can The USD Rise Back?
InstaForex

May 27, 2021

Surely Someone Is Asking, Why Can The USD Rise Back?

 The rise of the US dollar continued to grace the Asian trading session after gaining gains on Wednesday which saw the major currency king bounce back from a 4 -month low against its major rivals.


At the time of writing, the dollar index that measures the strength of the greenback dollar against most major currencies is trading rising around the price of 90.10.


On the other hand, 10 -year US bond yields continued to move weakly around the 1.58%level. This indicates that investors are beginning to believe that the Federal Reserve (Fed) will maintain current monetary policy despite rising inflation.


The greenback gained gains as investors prepared to end this month’s trading with profit -taking against several major currencies by the end of the week.



The euro fell lower below 1.22000 following the resurgence of the US dollar. European Central Bank (ECB) policymaker Fabio Panetta says he sees no signs of inflation moving upwards and it is still too early to pull a stimulus measure.


Meanwhile, the pound also depreciated lower, with price movements struggling to maintain a position above 1.41000 against the USD. Disagreements over Northern Ireland’s protocol re -pressed the currency’s trading to limit gains.


Meanwhile, the Canadian dollar traded lower despite stable crude oil trading. However, the currency is still strengthening around its almost 3 -year high.


The next market focus will be targeted at the publication of US Gross Domestic Product (GDP) data showing early estimates tonight.