InstaForex

October 14, 2021

The USD Plunge Has Not Stopped! How far do you want to go down?

 The king of the USD extended its decline lower in the European session, touching a nine -day low against most major currencies despite having been shown with high US inflation data readings.


The US dollar should have risen higher as US inflation data continued to show an increase and the minutes of the FOMC meeting reassured investors that a reduction in bond purchases would be implemented soon.


However, the giant currency showed the opposite reaction by depreciating lower, following the decline recorded in 10 -year US treasury yields.



At the time of writing, the dollar index that measures the strength of the greenback dollar is trading 0.2% lower than its main competitor, at 93.80.


The euro continued to rise higher following the weakness of the US dollar, with it trading stronger at 1.1610, far leaving the 15 -month low it touched earlier.


While the pound also strengthened above the 1.37000 price level following weak USD trading, it was also supported by expectations that the Bank of England (BOE) will raise interest rates this year.


Commodity -linked currencies also gained, with the Aussie dollar soaring near a one -month high, and the kiwi dollar moving closer to a three -week high against the greenback.