The US dollar is holding the higher, as the market sentiment remains roiled by escalating concerns over a slowdown in the economic recovery, especially after the Fed’s Beige Book signaled a ‘downshift’ in the economy. The rapid spread of the Delta covid variant threatens to derail the economic turnaround.
Further, hawkish comments from the Dallas Fed Chief Robert Kaplan also bacs the dollar’s strength. Kaplan called for tapering as early as October. Despite the taper talks, the US Treasury yields remain pressured amid risk-off mood. The Asian indices also trade in the red alongside the S&P 500 futures.
US President Joe Biden on Thursday will present a six-pronged strategy aimed at fighting the spread of the highly contagious Delta variant and increasing covid vaccinations.
Gold price is nursing losses near two-week lows of $1782, unfazed by weaker Treasury yields, as central banks’ tapering expectations outweigh.
EUR/USD Is easing towards 1.1800, as investors turn on the sidelines ahead of the ECB monetary policy decision.
It seems that the central bank will maintain its ultra-loose policy in place, despite the spike in inflation. However, the tapering discussion will surely be on the table. Whatever policymakers let know about it will set the tone for EUR/USD. Additionally, the ECB is expected to review its inflation and growth forecasts,” FXStreet’s Chief Analyst, Valeria Bednarik explains.
Meanwhile, GBP/USD falls for the fourth straight day and flirts with 1.3750 amid the unabated dollar’s strength and Brexit concerns. Traders digest the latest comments for BOE Governor Andrew Bailey, as he said, “we are seeing some short-term leveling off in the recovery.”
AUD/USD drops to test 0.7350 amid mixed Chinese inflation data and covid concerns, Australia’s ‘Roadmap to freedom’ for New South Wales fails to offer any help.
Attention turns towards the ECB decision, US President Joe Biden’s six-pronged strategy to fight the virus battles and the weekly Jobless Claims.
Cryptocurrencies see a sluggish performance, with Bitcoin once again challenging the $46,000 level.