This is the fate of the USD after a severe plunge!


 Opening the curtain of the European session, the US dollar was traded stable following the fall recorded after the release of the minutes of the FOMC meeting.

Disappointed by the more dovish signal than expected, the giant currency retreated from its strongest 2-week high to trade lower than most major currencies.

According to the latest FOMC minutes, the majority of Federal Reserve (Fed) policymakers agree that a smaller interest rate hike is imminent.

It thus strengthened market expectations that the Fed would implement a 50 basis point hike in December.

In addition, the US dollar was also affected by the publication of economic data which showed that US private sector business activity declined sharply in November.

However, thanks to the worsening Covid-19 situation in China, the greenback dollar, which is also considered a safe-haven, managed to reduce some losses at the beginning of the European session.

Risk-sensitive currencies, the Aussie and New Zealand dollars, which initially rose, retreated slightly after reports of Covid-19 cases in China hit new records.

On Wednesday, the country recorded 31,527 cases, surpassing the peak of 29,317 recorded in mid-April last when the closure (lockdown) was implemented in Shanghai.

Also showing declines were euro and pound trades, but each still held on to much of the week's gains.

However, market movement is predicted to be limited heading into the New York session following the closing of the US stock and bond markets in conjunction with the Thanksgiving Day holiday today.