October 14, 2021

USD Falls Ahead Of Inflation Data And FOMC Meeting Minutes

 The USD giant continued to retreat further, providing an opportunity for its main rivals to record gains in today's trading session.

At the time of writing, the dollar index that measures the strength of the greenback dollar traded lower at 94.30, moving away from its previous one -year high of 94.54.

The latest data shows the U.S. economy hit a new record when as many as 4.3 million people quit their jobs in August, and job openings also declined to 10.4 million from 10.9 million expected.

Investors ’focus is now on the publication of US inflation data tonight and the minutes report of the meeting early Thursday morning.

The decline in the greenback dollar has benefited the euro to bounce back from a 14 -month low, with it trading steady at 1.1556 during the European session.

While the pound remained stable at 1.36200 against the USD, after readings of published UK economic data did not change the Bank of England's (BOE) expectations to raise interest rates this year.

Investors are now awaiting developments on the issue of the Irish protocol which remains a hindrance to the UK and European Union (EU) deal and continues to pose risks to the currency.

Trading in the Aussie dollar, kiwi and loonie also received some support to rise from the depreciation of the US dollar and rising commodity prices.