USD Remains Strong, Major Currencies Show Lifeless Action

 The start of European session trading saw the king of the US dollar continue to strengthen at a two -week high against major rivals.

Stronger-than-expected readings in US producer price index (PPI) data have supported the US dollar to climb higher, while most other major currencies have been weighed down by the Covid-19 threat.

Against most major currencies, the dollar index traded higher around 92.80.

The euro slipped lower by slipping below the 1.1800 price level following the strengthening of the US dollar.

While the pound is still holding back from falling lower, as the market awaits a speech from UK Prime Minister Boris Johnson on the government’s plans to manage Covid-19 in the autumn and winter.

Moreover, the kiwi dollar gave little reaction after New Zealand Prime Minister Jacinda Ardern announced sanctions in Auckland would begin to be eased to phase 3, while other areas were downgraded to phase 2.

The Aussie dollar continued to bear pressure from Covid-19 infection cases which continued to hit daily record highs. A reading of economic data to be published this week will show the impact of the sanctions that have been implemented in Australia.

Moreover, market sentiment earlier in the week was also clouded by reports from China that were said to make Alipay, one of the country’s largest payment apps the next victim in the government’s latest attack on technology companies.

The Canadian dollar traded steady as crude oil prices rose higher supported by still -unrecovered production operations in the US Gulf of Mexico after more than two weeks of Hurricane Ida.

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