USD Plunges Lower, What's The Case? - - Financial Market Media No. 1 in the World USD Plunges Lower, What's The Case? USD Plunges Lower, What's The Case?

May 7, 2021

USD Plunges Lower, What's The Case?

 The US dollar weakened lower at the opening of the European session, giving major currencies a chance to rise higher ahead of the release of US NFP jobs data tonight.

The dollar index, which measures the strength of the greenback against a basket of major currencies, slipped to a one -week low of 90.80.

The euro surged higher following the decline recorded by the greenback dollar, with the price movement exhibited towards the 1.21000 level.

Rising German 10 -year bond yields also supported the strengthening momentum of prices for the euro.

Meanwhile, the pound also continued to appreciate higher following the announcement by the Central Bank of England (BOE) to reduce its weekly bond purchases and boost economic growth projections.

The UK economy is projected to grow stronger this year following progress in the Covid-19 vaccination program, in which half of the country’s population has been vaccinated.

At the time of writing, the pound sterling is trading strong around 1.392000 against the weak US dollar.

On the other hand, the Aussie and New Zealand dollars remained traded higher, supported by rising commodity prices.

While the Canadian dollar continued to strengthen around a 3 -and -a -half -year high, with market focus also targeted on the publication of Canadian jobs data tonight.