Sentiment Remains Uncertain, Investors Are Back To Caution - Kakiforex.com - Financial Market Media No. 1 in the World Sentiment Remains Uncertain, Investors Are Back To Caution Sentiment Remains Uncertain, Investors Are Back To Caution
InstaForex

July 13, 2021

Sentiment Remains Uncertain, Investors Are Back To Caution

 The US dollar began to create a rhythm to rebound in early trade in the week, trading higher against major currencies as US treasury yields stabilized.


The dollar index traded up 0.10% against its major rivals in slower market movements.


Concerns over the Delta coronavirus variant are still plaguing the market, causing investors to be more cautious and driving demand for the US dollar safe-haven to increase.


Cases of Covid-19 infection in the United States are on the rise again, with an increase of 60% having been recorded within two weeks even though it was only reported in certain areas.



The pound fell back below the 1.39000 price level it reached in the previous Asian session, with the focus now on Prime Minister Boris Johnson's announcement today.


PM Johnson is expected to confirm on his plans to lift all restrictions in England on July 19, and warn his citizens to always be wary of the freedoms granted.


Meanwhile, the euro remained stable as the US dollar recorded a modest rise ahead of the release of US inflation data on Tuesday.


On the other hand, the Aussie dollar continued to move weakly, weighed down by the possibility that coronavirus restrictions in Sydney would continue following an increase in infection cases of up to 45%.


Concerns over the slowdown in China's economic recovery have also weighed on sentiment. The People’s Bank of China (PBOC) earlier announced interest rate cuts for banks to stimulate the economy.