The movement of the currency is expected to continue to slow until the New York session as the holidays in the United States dampen the mood in the market to move more aggressively.
The greenback displayed gloomy action after rising at the end of last week’s trading, seeing the dollar index continue to hover around 95.12 against its main competitor.
China’s better -than -expected economic growth data unfortunately failed to influence large movements by risk -sensitive currencies, the Aussie dollar and the kiwi.
Gross Domestic Product (GDP) grew 4.0%in the fourth quarter (October-December) from the previous year compared to the expected increase of 3.3%, but declined from the third quarter which was recorded at 4.9%.
The failure of the Aussie dollar and kiwi to rise may be due to the bleak outlook for China’s future economic growth which is now hampered by the growing Omicron outbreak in many areas.
While the European currency is still hovering around the same price, with the euro trading at 1.1400, the pound at 1.3670 against the US dollar.
European Central Bank (ECB) president Christine Lagarde said on Friday that they were ready to take the necessary steps to control inflation back to the 2%target.
