December 28, 2021

This is the Current Movement of the USD Ahead of the New York Session

 The start of the European session market saw major currency trading not change much following investor vigilance amid uncertainty about the coronavirus outbreak.

At the time of writing, the dollar index which measures the strength of the greenback dollar against a basket of major currencies traded slightly lower at 96.05.

The market as a whole was seen as cautious due to high price volatility factors towards the end of the year, causing investors to limit their positions in the financial markets.

Investors are also once again assessing the risks of the Omicron variant to economic growth, which has led to a sharp increase in Covid-19 cases worldwide.

Even so, investors seem to be taking a more positive view given that most countries have adapted Covid-19 as endemic.

The U.S. Centers for Disease Control and Prevention (CDC) has reduced the quarantine period imposed on U.S. citizens to five days from 10 days when the Covid-19 outbreak is spreading.

This supports the trading of major currencies to maintain the gains made following the weakness of the greenback dollar.

This can be seen in the movement of the pound which is getting closer to the five -week high of 1.3450 against the USD. The administration of UK Prime Minister Boris Johnson has assured that no new restrictions will be implemented this holiday season.

Meanwhile, the euro continued to hold above the price level of 1.1300 against the US dollar.