October 6, 2021

Thats it! USD Back Crazy

 Concerns over rising price pressures have weighed on the trading of most major currencies and provided an opportunity for the US dollar to rise higher in the European session.

The greenback dollar rose near a one -year high against its major rivals, with the dollar index trading stronger at 94.30.

Rising global energy prices, especially world crude oil, also drove an increase in 10 -year US treasury yields to return to a three -month high.

This was followed by a decline in global stock markets which also saw US stock futures trade in the red ahead of the opening of the New York session.

The release of US private sector ADP employment data tonight, is the focus of investors to get clues on the reading of the NFP report on Friday.

Meanwhile, the kiwi dollar weakened sharply following the strengthening of the USD, failing to capitalize on the hawkish decision of the New Zealand central bank (RBNZ) to raise interest rates to 0.50% at a policy meeting held today.

The euro also sank to its lowest level since July 2020, trading around 1.1552 against the USD.

The pound also slipped around 1.35500 against the USD, while investors awaited UK Prime Minister Boris Johnson's speech on his vision for the country. The UK military continues to help bring petrol to petrol stations as the country continues to be plagued by supply shortages and high prices.