Is the case of the USD suddenly 'jumping' in the European session? - Kakiforex.com - Financial Market Media No. 1 in the World Is the case of the USD suddenly 'jumping' in the European session? Is the case of the USD suddenly 'jumping' in the European session?
InstaForex

August 4, 2021

Is the case of the USD suddenly 'jumping' in the European session?

 Mixed sentiments adorned the European market, showing the US dollar again gaining demand in the European session by rising higher than the euro.


As of writing, the dollar index is rising around 92.18, rising higher from the previous dismal session.


The euro dipped lower after being shown by a less than encouraging reading of data in the European Zone, at the same time providing an opportunity for the greenback dollar trade to increase.


The release of private ADP jobs data and the US service PMI tonight will be the market's pedestal for guidance ahead of Friday's publication of the NFP jobs report.



However, the US dollar's gains did not prevent the kiwi dollar from continuing to trade higher supported by rising expectations by the market that the Central Bank of New Zealand (RBNZ) will increase its profitability after witnessing another positive reading in the jobs data.


New Zealand's unemployment rate fell below its pre-pandemic stage in the second quarter, recording a decline to 4.0% from 4.6% it recorded in the first quarter.


Meanwhile, the Aussie dollar also continued to trade firmer, which was still supported by the decision by the Central Bank of Australia (RBA) to maintain its plan to reduce the rate of bond purchases in early September despite Covid-19 risks.


At the same time, the market is also being squeezed by concerns about the situation during the coronavirus, especially in China which has implemented stricter travel restrictions to stem the spread of the virus.