U.S. Dollar Continues to Increase
Significantly, Driven by The U.S. Economic Recovery Optimism
rebounded on Wednesday's Asian market trade. The U.S. dollar getting higher as
well as increasing expectations of the U.S. economic recovery from the Covid-19
pandemic that supported the greenback.
The yield on
US debt for approximately 10 years shows the biggest increase this week, by
attracting investors to participate in a massive auction worth $38 billion.
uncertainty about the latest U.S. stimulus inhibits the dollar from rising. On
the other side, the market also wants to see if Congress can reach a consensus
for that action.
index on today's trades has increased by 0.13% to 93.765. The USD/JPY pair
increased by 0.14% to 106.62. The AUD/USD pair decreased by 0.13% to 0.7133.
The NZD/USD pair decreased by 0.18% to 0.6564. The Antipodean currencies (AUD
and NZD) continued to trade amid concerns over the Covid-19.
Consumer Sentiment Index suffered a downfall, as Westpac Consumer Sentiment
Index decreased by 9.5% to 79.5 in August. Melbourne's second largest city is
currently under the restrictions of the fourth stage COVID-19, and the country
reports the largest increase in daily infections this week.
Auckland had a lockdown when there are four new cases related to Covid-19. This
case is the first in New Zealand in the last three months. The Reserve Bank of
New Zealand interest rate policy decision are following expectations and
remained unchanged at 0.25%.
pair increased by 0.22% to 6.9563. The GBP/USD pair decreased by 0.10% to
1.3035. The Pound was under pressure after this week's labor market data release.
The data missed the expectation and indicated that the loss of jobs in the UK
was at the highest level in more than a decade in the last quarter.