Market Risk Appetite Begins to Change Ahead of The Fed Meeting!

 The US dollar still maintained its performance on Friday by making a consolidation to a 2 -week high after several days of uncertainty due to changes in risk appetite among traders. The focus of the market now is on the Federal Reserve meeting next week.

The dollar index, which measures the US dollar against a group of six major currencies recorded a slight strengthening today at the trading level of 92.877. For this week, the US dollar strengthened 0.2%, after strengthening 0.6% in the previous week.

The decline in the strengthening in the US dollar was driven by reduced concerns of market players over the Covid-19 variant that could thwart the global recovery.

Risk appetite among investors remained high on Friday, with U.S. stocks. increased, U.S. Treasury the occurrence of sales and commodity currencies continue to perform well.

Wells Fargo’s Nelson analyst, however, isn’t confident the U.S. dollar can survive in the next few weeks given the decline in U.S. Treasury yields.

The next market focus is on the Fed’s 2 -day policy meeting next week. Meanwhile, the euro slipped 0.1% to $ 1.1763 against the US dollar, showing little reaction to a survey of purchasing managers coming out of France, Germany and the eurozone as a whole.

Eurozone business activity grew at the fastest monthly rate in more than two decades in July due to the easing of Covid-19 restrictions. The Australian dollar seen as a proxy for market risk appetite slipped 0.1% to $ 0.7374, heading for its fourth consecutive weekly loss.

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