Demand For United States Dollar (USD) Is Still Growing Despite COVID-19 Concerns

Demand For United States Dollar (USD) Is Still Growing Despite COVID-19 Concerns

There is a sluggish performance of the Asian stocks on Wall Street overnight, sabotaged by the prospects around the resurgence of the Delta Covid variant and stimulus withdrawal in the region.

The mood of the market remains unexciting, heading into the session before USD’s steady sustenance of three-week highs helped by the expectation of tapering from the Fed after the US NFP blowout and the hawkish Fedspeak. As Delta covid fears grow, so does sentiment around the safe-haven currency, putting downward pressure on US yields.

Also, ahead of the US Senate vote on the $1 trillion infrastructure bill by President Joe Biden, the greenback held the higher ground. The majority leader of the US Senate, Chuck Schumer, has this to say on the bill; “we have reached a concrete agreement” on the final infrastructure bill passage.

Alongside that, gold is gathering momentum to stage a rebound to $1735 from $1688, the lowest price in five months. WTI is currently on a stabilized recovery from the 3-weeks lows to recapture $67 prior to the weekly report from the US Crude Supplies.

The majors on the FX board are currently consolidating in a narrow range amid the widely unwavering USD. With that, AUD/USD is lagging, getting closer to the current low in 2021 amid the drop in the confidence of businesses and the unending spread of the COVID-19 virus in Australia. Currently, New South Wales in Australia has been tagged the new epicentre of the virus after recording 350 new cases.

Fresh demand is rising on GBP/USD around 1.3850, though it remains stalled by the migrant crisis and the renewed Brexit jitters. Nigel Farage, the former Brexit Party leader, slammed France and the European Union for failing in addressing the migrant crisis.

For EUR/USD, the pair is hovering around the last 4-month lows around 1.1731. This is caused by the drop in the confidence of the Eurozone Sentix Investors and the expectations of the hawkish Fed prior to the German ZEW Survey.

In the crypto space, there has been some sort of a pull pack with the flagship asset failing to take the next support zone. Currently, there has been a rejection of the crypto amendment though the bipartisan bill is in the final stage of adoption pending the final votes.