At the end of Monday’s trading day on 7 June 2021 the domestic currency of the USA and, above all, the main commodity currency – the US dollar (USD) – was subdued, as investors started to have initial concerns regarding the current level of inflation in the United States (US). According to analysts, data from the US labor market, which was reported at the end of last week on Friday, 4 June, also contributed to these concerns. Investors are now waiting for official data on real inflation of the US economy, which are to be announced during this 23rd week of 2021.
Based on these facts, the current exchange rate of the USD, measured by the US Dollar Currency Index (DXY) – which compares the value of the USD with six other major world currencies – fluctuated during the European Tuesday morning of 8 June. According to this index, at 7:28 am CET the USD was seen at a price level of 90.06, with a daily appreciation of +0.12%. Meanwhile, the single European currency, the euro (EUR), weakened against the USD on the international foreign exchange – Forex market. At the mentioned time, the global currency pair traded on the Forex market at a mutual exchange rate of US$ 1,218 per EUR, with the current daily decline of the EUR by -0.09% against the USD.
Currently, even a relatively stronger European currency, the British pound (GBP) weakened against the USD. During the European Tuesday trading morning of 8 June at 7:33 am CET, the currency pair GBP/USD traded at the exchange rate in US$ 1,415 per GBP, with a daily depreciation of GBP by 0.176% against the USD. At the same time, the USD, which eased its growth rate, still strengthened on the Asian market and especially against the Japanese yen (JPY). At the time mentioned, the USD/JPY currency pair traded on Forex market at the mutual exchange rate of JPY 109.43 per USD, with the daily strengthening of the USD by +0.17% against the JPY.
According to economic correspondents, reported data from the US labor market reduced US bond yields. At the beginning of the new trading week investors are looking for a new direction based on consumer price data. Many investors now expect the US Federal Reserve (Fed) to introduce a plan to reduce bond purchases with effect from the end of 2021. In this context, investors also expect the Fed to increase current interest rates at the end of this year, which, according to financial market analysts and economists, should cause a further strengthening of the USD exchange rate.
