Investors Are Awaiting Shocks, The US Dollar Has Not 'Woke Up' Yet


Trading at the beginning of the week yesterday was slow as expected due to the market being closed in conjunction with public holidays in the UK and also the United States (US).

However, the slow movement of prices is likely to continue with investors who will be cautiously awaiting the release of key data reports such as the PCE price index at the end of the week.

The US dollar, however, is seen continuing its downward trend after the currency weakened again at the close of trade last week.

But analysts still put confidence in the US dollar to strengthen again by looking forward to a re-directed focus on the monetary policy of the central bank, the Federal Reserve (Fed).

In the New York session tonight, the Conference Board's consumer confidence survey data will be given attention as the driver for the current movement of the US dollar.

In addition, the focus will also be on Fed officials who will deliver speeches including Cleveland Fed Loretta Mester, Minneapolis Fed Neel Kashkari and governor Lisa Cook.

Any indication it conveys is important for markets to assess the central bank's inclination for their still divided monetary policy.

Unlike other central banks such as in Europe, clear indications were presented by ECB member Fran├žois Villeroy de Galhau for the central bank to implement interest rate cuts starting in June.

Likewise in the UK where the BOE governor Andrew Bailey has previously also hinted at similar things with the view that rate-cutting measures to be taken do not need to wait for the Fed.

However, while continuing to wait for new indications, currencies such as the Euro and the Pound still managed to register an increase that took advantage of the situation of the US dollar's decline.

Gold trading was also seen to increase slowly yesterday, but there is a risk of falling again if the US dollar returns to its strengthening pace after this.