USD is back in power! - - Financial Market Media No. 1 in the World USD is back in power! USD is back in power!

June 2, 2021

USD is back in power!

 The US dollar continued to extend its strength in the European session by trading higher against most major currencies.

US ISM survey manufacturing data readings exceeded expectations by recording stronger growth in May, marking a continued recovery in economic activity in the country.

Following that, the greenback dollar regained support to recover despite additional doubts from Federal Reserve (Fed) policymaker Lael Brainard speaking at the New York Economic Club on Tuesday.

He told that the Fed is now getting closer to its maximum employment target and 2%inflation. However, due to the ongoing problems, the central bank needs to stick to a very loose monetary policy so that more progress can be achieved.

The euro slid lower, failing to sustain the strengthening recorded on Tuesday following the resurgence of the US dollar.

Meanwhile, the pound continued to trade lower after falling from a three -year high it reached on Tuesday.

There are new concerns surrounding the UK, where the risk of the spread of a viral variant will prevent the country from coming out of a full coronavirus ban on June 21.

As for Asian currencies, the Aussie dollar failed to capitalize on encouraging data readings by plunging further in the European session. The Australian economy registered a growth of 1.8% in the first quarter of this year, exceeding market expectations for a 1.5% increase.