The US dollar began to find a rhythm to start trading after going through a long weekend, seeing it trade little changed in the Asian session.
However, it is still too early to determine the direction of the movement of the king of the currency due to the absence of key catalysts to stimulate more aggressive trading of the US dollar.
Furthermore, the movement of the USD was also limited as market sentiment was seen to be improving following reports on the outcome of talks to abolish Chinese import tariffs by the Biden administration may be known this week.
Following that, investors also saw gains in major currencies, particularly the Aussie dollar which was supported by investors ’expectations for a 50 basis point rate hike by the Reserve Bank of Australia (RBA) today.
The pound also benefited from positive sentiment as investors targeted the focus on interest rate hike signals by the central bank of England (BOE), where Governor Andrew Bailey will speak tonight.
Even so, the pound’s recorded gains were relatively limited following continued uncertainty over the Brexit issue and the shock of rising real incomes in the UK economy.
Meanwhile, the euro rose slightly but was still not far from a five -year low against the US dollar.
