July 6, 2021

USD Inactive To Continue Rising

 The opening of the European session saw most major currencies trade higher against the greenback dollar.

The US NFP employment data reading last week, showed a mixed reading, with the growth of key employment figures in June rising above market expectations.

The unemployment rate, on the other hand, disappointed market forecasts by registering higher increases in the past month, while labor force participation remained unchanged.

This is causing investors to start worrying that this latest data reading will leave room for the Federal Reserve (Fed) to wait before reducing their asset purchases or raising interest rates.

The pound traded higher in the European session, with market focus now focused on UK Prime Minister Boris Johnson’s press conference expected to announce the easing of sanctions on July 19th.

Although the UK is currently recording a sharp increase in Covid-19 cases, the number of hospital admissions and deaths recorded is declining, marking the progress of vaccination in the country to be protective of its citizens.

Meanwhile, the euro also rose slightly following the depreciation of the greenback, however, dovish statements by European Central Bank (ECB) officials on inflation caused euro trading to be limited.

The Aussie dollar also rose ahead of the Reserve Bank of Australia (RBA) policy meeting tomorrow in the Asian session which is expected to see current interest rates and easing remain unchanged following the new Covid-19 threat in Australia.