Ahead of US inflation -focused data today (Friday), the US dollar was seen to return to show strengthening in New York session trading on Thursday after a more gloomy momentum was displayed the previous day.
The dollar index rose to weekly gains for the seventh consecutive week ahead of the release of US inflation data that will also influence the Federal Reserve’s (Fed) decision in implementing its policy tightening measures.
Also published alongside the inflation data is US consumer confidence data in the upcoming New York session for investors to assess price pressure factors.
While awaiting policy meetings for major central banks including the Fed, Bank of England (BOE) and Bank of Japan (BOJ) next week, investors are also following developments for the Omicron coronavirus variant threat report.
Current developments assessing Omicron’s risk of resuming have given an edge over risky and high -yielding currencies such as the Aussie dollar and the New Zealand dollar to record excellent performances this week.
The Euro, which managed to strengthen in Wednesday's trade, was hampered by its gains after being re -pressed by the strengthening US dollar towards the end of the week.
The pound, meanwhile, came under pressure with expectations that a rate hike was unlikely to be implemented by England’s central bank in the near term as uncertainty hit triggered by concerns over the Omicron coronavirus wave in the UK.
Such concerns have prompted Prime Minister Boris Johnson to announce ‘Plan B’ which is the latest movement restriction measure in the UK making investors assess the economic recovery will return to slow.
Commodity market developments, crude oil prices recorded a decline on Thursday following concerns over uncertainty in China which is one of the world’s largest consumers of oil that could impact demand.
The sensitive currency of the oil market, the Canadian dollar received tempias by displaying depreciation on current trade.
While gold investors are still restless watching a horizontal movement in the value of the yellow metal towards the weekend which remains hovering below the $ 1,800 level while clearer signals are awaited for current market sentiment.
