October 26, 2021

Currency Market Lost Direction!

 The currency market did not have a clear direction at the opening of the European session, seeing the greenback dollar trading slightly higher and major currencies slightly changed.

The dollar index traded steady at 93.85 against most major currencies, defending the gains recorded in the previous session.

The lack of a clear catalyst in today’s trading session, caused the currency to move around the same price.

The rise of the new Covid-19 case in China to the point of forcing the implementation of sanctions in Lanzhou is seen to have less of an impact on the currency market, especially risk-sensitive currencies such as the Aussie dollar and the kiwi.

The Aussie dollar traded slightly higher at 0.75000 against the USD, the focus of investors ahead of the release of Australian inflation data in the Asian session tomorrow, which is expected to be unchanged from previous readings in the third quarter.

Meanwhile, phone calls between Chinese Vice Prime Minister Liu He and Treasury Secretary Janet Yellen were seen as positive for US -China trade relations.

In addition, Canadian dollar trading was stable despite a slight decline in crude oil prices, with investors' focus now on the Central Bank of Canada (BOC) policy meeting on Wednesday.

The pound rebounded, approaching the 1.38000 price level after slipping in early trading of the week. The euro was little changed as it continued to trade lower following the decline recorded in the previous session.