The market at the beginning of the week moving slowly is expected to continue until the European session this afternoon in conjunction with the Easter Holiday before the New York session market returns to stability.
The US dollar moved weaker at the opening of the Asian market session at the start of trading earlier this week after showing strength when the US NFP jobs data report was published last Friday.
Being the main focus last week, the NFP jobs report showed a significant increase in employment increased for March to 916,000 higher than expected to rise to 652,000 while the unemployment rate also declined.
This indicates good developments in the US with confidence in the economic recovery having prompted companies to start increasing hiring in the past month.
But investors will scrutinize the movement of the US dollar earlier this week to see if it can continue to strengthen after a weak move last week following a fall in declining US treasury yields.
U.S. services sector data will be the focus early in the week before attention is given to the minutes of the FOMC meeting to be published early Thursday morning.
European currencies such as the Euro and the Pound are still seen struggling to strengthen against the US dollar with investors monitoring the development of viral outbreaks and vaccination programs in Europe.
It is reported that over 5 million UK citizens have received a second dose of the vaccine involving 10% of their country’s population and this factor will lead to a faster economic recovery.
Market sentiment which is seen to recover will put further pressure on commodity currencies involving the Australian and New Zealand dollars.
