August 24, 2021

USD Going Up And Down?

 The monarch's movement of the US dollar was limited in the European session with a modest rise amid market vigilance ahead of an important event on Friday.

News of the U.S. Food and Drug Administration (FDA) granting full approval to Pfizer-BioNTech’s Covid-19 vaccine, continues to support market sentiment to remain positive.

This full approval is expected to increase public confidence to be vaccinated as it meets high standards of safety, efficacy and manufacturing quality, thus increasing vaccination rates in the country.

Uncertainty about when the Federal Reserve (Fed) will reduce its stimulus still dominates sentiment on the U.S. dollar, causing investors to be more cautious while waiting for the Jackson Hole symposium to get clues about it.

The dollar index, which measures the strength of the greenback against a basket of major currencies, traded stable at 93.04.

Meanwhile, the pound’s bullish momentum was seen slightly shaky at the start of the European session, but it still maintained most of its gains against the US dollar this week after soaring nearly 1%.

The euro traded slightly lower in line with the movement of the US dollar, trading around 1.1722 in the European session.

Commodity currencies still maintained gains by continuing to trade higher during the European session. The Canadian dollar benefited from a resurgence in world crude oil prices.