These Two Critical Factors Will Drive The USD This Week - Kakiforex.com - Financial Market Media No. 1 in the World These Two Critical Factors Will Drive The USD This Week These Two Critical Factors Will Drive The USD This Week
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July 12, 2021

These Two Critical Factors Will Drive The USD This Week

 Positive sentiment again graced the market with most major currencies trading higher against the greenback dollar at the opening of trading earlier in the week.


The dollar index, which measures the strength of the greenback dollar, traded down 92.08 in the Asian session, continuing the decline recorded at the end of last week's session as the stock market stabilized.


The outlook for U.S. inflation and policy tightening by the Federal Reserve (Fed) is back in investor focus this week, where consumer price data will be published on Tuesday and Fed Chairman Jerome Powell will speak on Wednesday.


The euro traded steady around 1.1875, after rising from a nearly three -month low against the US dollar.



Meanwhile, the pound led the way with a strong trade above 1.39000 against the greenback despite a poor reading of UK economic growth data in May.


The Canadian dollar strengthened against the US dollar after seeing encouraging data readings on Friday, with Canada reportedly adding more jobs than expected in June.


Meanwhile, the People’s Bank of China (PBOC) on Friday, cut interest rates for banks by 50 basis points effective July 15, to support the economic recovery that is beginning to lose momentum.


This has given little support for the antipodean currency to rise again, however, the movement exhibited by the Aussie dollar and the kiwi is seen to be limited at the start of today’s Asian session.