Heading up to the opening of the New York session, investors remained firm in their hold on the US dollar giant with the market’s main focus focused on the publication of the FOMC meeting minutes report early this morning.
Following the sharp fall in the currency market on Tuesday, the market continued to avoid taking risks which saw major currency trading remain weak at lows.
Reports of China launching another large-scale test in Shanghai and the city of Xi, which implemented a seven-day temporary control measure, were also seen to affect sentiment.
The euro continued to depreciate to its latest low since December 2002, weighed down by the gloomy outlook for the European economy in the wake of the escalating energy crisis.
The pound weakened to a more than two -year low as Prime Minister Boris Johnson struggled to defend his leadership in the UK after more members of his cabinet resigned following the resignations of Finance Minister Rishi Sunak and Health Secretary Sajid Javid.
The minutes of the FOMC meeting will be the focus of the market today to get further indications on the action the Federal Reserve (Fed) will take after raising rates by 75 basis points in June.
In addition, the production of ISM services PMI data will also be scrutinized as a guide ahead of the release of the US NFP employment report on Friday.
