After going through a gloomy trading session last week, the king of the US dollar currency returned to stability at the opening this week as most major financial markets closed in conjunction with the Christmas holiday.
During the Asian session, the major US dollar index traded steady at the price level of 96.10 against a basket of other major currencies.
The U.S. Bureau of Economic Analysis reported on Thursday that Core Personal Consumption Expenditure (PCE), the Fed’s preferred measure of inflation, jumped to 4.7% annually in November from 4.2% previously recorded.
Meanwhile, trading for most major currencies was little changed, with the major leaders of the Asian session, the Aussie and New Zealand dollars trading higher around one -week highs.
Following the development of European currencies, the euro returned to trade above the price level of 1.1300 against the USD after a decline recorded before trading closed on Friday.
The pound continued to strengthen at around 1.3400 against the greenback dollar after being supported by some positive news about Brexit and easing concerns about the Omicron variant.
Meanwhile, the loonie dollar maintained its strength with support from rising world crude oil prices and economic data showing the Canadian economy remained strong in October.
Following a quiet trading session this week, the high price volatility factor in the market driven by low liquidity will put the market at risk. Market players are likely to ‘rest’ from entering positions this week and prepare for the early trading session of 2022.
