October 5, 2021

‘Slow’ Market Movement, USD Remains Gloomy

 The greenback failed to maintain the gains recorded in the previous session, with the return traded lower after the European trading session began.

Concerns over the Evergrande issue slightly disturbed the market, yet it did not have a significant impact on currency movements.

Initially, the Aussie dollar and kiwi were slightly impressed with news that said Evergrande shares were suspended for trading on the Hong Kong market during the Asian session.

Still, trading of the two currencies returned to stability, taking advantage of the depreciation of the US dollar as investors awaited a clear catalyst to move the king of the currency.

The US data to be published this week will be the main focus of the market where it will be used as an indicator for the plan to reduce bond purchases by the Federal Reserve (Fed) especially the NFP jobs report.

The dollar index, which measures the strength of the greenback against six other major currencies, traded lower at 93.95.

This decline has provided an opportunity for the pound to record an increase to around the price of 1.3580 against the greenback.

Even so, investors remain wary of high gas price pressures and issues regarding the UK and European Union (EU) protocol agreements. Most recently, Britain will threaten to throw out some of the terms of the Northern Ireland protocol agreement.

Meanwhile, the Canadian dollar also recorded gains in support of higher crude oil prices ahead of the OPEC+meeting.