November 2, 2021

What Fate Awaits the USD Ahead of the New York Session?

 The market again saw a strengthening of the greenback dollar in the European session, while the Aussie dollar slipped to a one -week low after being disappointed by the policy decision of the Australian Central Bank (RBA).

Market focus is now shifting to the US Federal Reserve (Fed) which will begin its two -day policy meeting on Tuesday and is expected to announce the start of a reduction in its asset purchases.

Moreover, the market also pinned hopes for an interest rate hike at the Bank of England (BOE) policy meeting on Thursday.

At the time of writing, the dollar index traded slightly higher at 93.97 against most other major currencies.

The Aussie dollar plunged more than 0.47% following a dovish statement from RBA Governor Philip Lowe who saw inflation still low despite it setting aside previous predictions that interest rates would not be raised until 2024 and ending the April 2024 bond yield target.

While the kiwi dollar also recorded a depreciation against the USD, as investors ’focus is now focused on the publication of New Zealand jobs data for the third quarter early tomorrow morning.

The euro, on the other hand, depreciated slightly following the rebound displayed by the greenback dollar, with it trading around 1.16000.

On the other hand, the Canadian dollar also traded lower against the US dollar even as world crude oil trade rebounded around annual highs.