November 1, 2021

This Currency Movement Ahead of US Manufacturing Data

 The greenback dollar remained stable against its major rivals in the European session, as investors awaited the release of US manufacturing data for October tonight.

The benchmark US 10 -year bond yields moved flat around 1.5% after falling from the 1.7% level it reached at the end of last week's trading following encouraging inflation data.

Over the weekend, world leaders voiced their commitment to resolving the issue of global supply disruptions during the G20 summit.

US President Joe Biden says they need to act now, along with allies in the private sector to alleviate the problems they face.

At the time of writing, the dollar index which measures the strength of the greenback dollar against a group of major currencies traded little changed at 94.11.

The pound slipped to its lowest level since mid -October around 1.3668 against the strong US dollar.

While investors expect the Bank of England (BOE) to announce an interest rate hike at a policy meeting this week, turmoil over post-Brexit issues has kept the currency from posting gains.

Meanwhile, the Aussie dollar traded lower at 0.7500 against the greenback dollar with market focus now focused on the Australian Central Bank (RBA) policy meeting on Tuesday.

The RBA was under pressure following an increase in April 2024 bond yields that exceeded the central bank’s target. At the end of last week, it decided not to defend its 0.1% target for 3 -year bond yields, which have risen above the 0.8% level.