What Factors Influencing European Session Market Movements? - Kakiforex.com - Financial Market Media No. 1 in the World What Factors Influencing European Session Market Movements? What Factors Influencing European Session Market Movements?
InstaForex

August 3, 2021

What Factors Influencing European Session Market Movements?

 Cautious market sentiment put the U.S. dollar behind the safe-haven yen and swiss franc, amid growing concerns over a resurgence of coronavirus cases due to the spread of the Delta variant and dismal U.S. economic data readings.


In the United States, hospitalization rates due to Covid-19 are reported to have increased to record highs, particularly in Louisiana and Florida.


US bond yields, which are usually seen as a measure of market confidence in economic growth, fell below the 1.20% level, the lowest since February.


Along with weak US bond yield movements, the greenback continued to trade lower against most major currencies during the European session.



The US dollar slipped 0.1% to around 109.21 against the yen, not far from its previous two -month low. Against the swiss franc, the greenback traded around 0.9046 francs, after touching a one -and -a -half -month low in the previous session.


The Aussie dollar continues to benefit from the decision of the Australian Central Bank (RBA) to continue its plan to reduce bond purchases in early September until at least mid-November.


Moreover, the kiwi dollar also rose after the Central Bank of New Zealand (RBNZ) said it would soon begin discussions on ways to tighten mortgage lending standards, as it seeks to control the rising housing market and protect home buyers.


Meanwhile, the pound also recorded gains in the European session by trading firmly above the 1.39000 price level against the US dollar, as the Covid-19 case in the UK continued to show a decline.