As expected, market movements in yesterday’s New York session were more aggressive than previous sessions at the start of this week’s trading.
The US NFP employment data report published last Friday was seen as failing to continue to support the strengthening US dollar as the market’s major currency slipped to a 1 -week low against several other currencies.
In addition to being driven by the stock market surge on Wall Street, declining U.S. treasury yields earlier in the week also pushed the U.S. dollar to depreciate.
The US services PMI data of the ISM survey published with high readings also failed to support the rebound of the US dollar.
Market sentiment which is seen to recover will give an advantage to commodity currencies in the market.
Still, investors will be wary of the Australian dollar in the Asian session this morning ahead of the Australian central bank’s (RBA) policy meeting with a focus on current monetary policy.
While the European currency took advantage of the opportunity to strengthen earlier in the week against the US dollar even viral transmission factors remained a concern.
UK Prime Minister Boris Johnson has announced for the easing of restrictions starting April 12 with the reopening of shops, restaurants, bars and some listed premises.
Expectations for a UK economic recovery will provide support for Pound Sterling trading.
For commodity trading, gold is seen as optimistic to rise this week but crude oil is under pressure following OPEC+ 's decision to increase production in stages between May and July starting at 350,000 barrels a day.
