The fall of the US dollar continued into the European session, seeing the giant currency plunge to its latest two -month low against its main rival.
High US inflation data unfortunately failed to stimulate the US dollar to rebound, as readings were recorded in line with market forecasts to rise 7% in December.
This indirectly indicates that the upward pressure on prices in the US is not as feared by the market.
The euro was among the currencies that took the biggest gain from the weakness of the greenback dollar to rise to an eight -week high by trading at 1.14700.
Meanwhile, the pound continued to rise higher, with the price moving closer to a three -month high and trading strong at 1.3740 against the USD.
On the other hand, the risk-sensitive currencies of the Aussie dollar and kiwi also continued to rise higher following the weakness of the USD, despite some bad news from Australia which recorded an increase in Covid-19 cases.
Moreover, the Canadian dollar also took advantage of the opportunity to continue to strengthen at a nearly two -month high against the greenback dollar, on the back of high crude oil prices.
Market attention is now turning to the publication of US producer price data on the New York session, which is expected to show a slightly weaker reading in December than before.
