September 20, 2021

This Is What Traders Need To Know For Currency Movements At The Weekend

 Global markets were expected to recover slightly in early trading today with the main focus of investors still focused on tapering measures by the Federal Reserve (Fed), stimulus in the United States (US) as well as political tensions plaguing China.

After US inflation data posted a weak reading this week, US retail sales data published yesterday again warmed up the movement of the US dollar.

The US dollar rebounded strongly with the resurgence of expectations for policy tightening measures by the Fed at the September edition of monetary policy meeting.

Before closing trading this week, US consumer confidence data will be given attention by the market in the New York session to survey the health of consumer spending in the world’s largest economy.

The European currency was seen moving steadily against the US dollar until today's European session but investors were wary of risks that overshadowed the move over the weekend.

UK retail sales data published at the start of the European session recorded a lower -than -expected reading for an increase. This will dampen expectations of the Pound’s strengthening after UK inflation data published this week is positive ahead of next week’s meeting of the central bank of England (BOE).

Commodity currencies such as the Australian dollar, New Zealand dollar and Canadian dollar today were seen showing little recovery after pressure on the strengthening US dollar yesterday.

While gold commodity investors were still absorbing the shock of yesterday’s gold price plunge saw a depreciation of up to $ 50 in 1 day.