The US dollar continued to dominate the market after a report of the latest FOMC meeting minutes confirmed the Federal Reserve (Fed) would pursue aggressive monetary policy tightening measures to combat inflation.
Against most major currencies, the dollar index traded stronger at 106.90 during the European session.
Meanwhile, markets in the European session were rocked by news of the resignation of UK Prime Minister Boris Johnson which was seen prompting the pound’s appreciation as an early reaction.
According to Downing Street sources, Boris Johnson will make an official statement to the nation today.
Meanwhile, the euro traded flat at around a 20 -year low, following the movement displayed by the greenback dollar.
In just a few hours, investors will be shown the minutes of the European Central Bank (ECB) meeting for the June edition policy meeting.
However, volatility in the currency market is still at its highest level since the end of March 2020 at 11.2%, reflecting investors' concerns over further movements in the market.
Looking at the development of risk-sensitive currencies, the Aussie dollar and the New York dollar seem to have created a rhythm to bounce back from lows, yet it is still too early to say whether the two currencies will return strong.
