The general index of the US dollar is trading down by 0.44% in the middle of the trading session today, Tuesday the 19th of October, and before the opening of the US markets, trading at 93.48 levels, the lowest level since the end of September, affected by the improvement in risk appetite in the markets, amid the decline in the yield on US Treasury bonds in a quiet trading session from Where is the economic data?
The yield on US Treasury bonds for ten years, after testing 1.62 levels during the opening session yesterday, has recorded declines since the Asian session, to trade at 1.57 levels.
During today’s session, the markets are awaiting the building permits and housing starts index from the United States of America, in addition to statements by members of the US Federal Reserve Committee (Daly – Bowman – Waller – Bostic) and statements by the Governor of the Bank of England Billy.
The rise in risk appetite in the markets supports the rises of the commodity currencies, as the New Zealand dollar rises by more than 70 points and is trading at 0.7145 levels, its highest level in five weeks, supported by the rise in the quarterly inflation reading issued with the opening of the markets yesterday, Monday, and the rise in expectations to raise interest rates in the next meeting of the Bank.
The Australian dollar, in turn, is trading at its highest level since the third of last September against the US dollar at levels of 0.7474, an increase of about 60 points, despite the minutes issued this morning in which the members of the Australian Reserve Bank confirmed that the bank is committed to the accommodative monetary policy until employment levels return to its previous era. But the Australian dollar is benefiting from being one of the currencies with high risks in the markets.
On the other hand, the Canadian dollar is trading at 1.2318, its highest level against the US dollar in more than three months, with a rise of about 55 points, taking advantage of the dollar’s declines on the one hand and crude’s rises by more than 1% on the other hand.
The pound sterling is one of the biggest beneficiaries of the decline of the US dollar outside commodity currencies, as it records gains of more than 90 points against the US dollar and is trading at 1.3813 levels for the first time in five weeks, supported by the high market expectations that the Bank of England will raise interest rates soon, especially after the Governor of the Bank confirmed Andrew Bailey said on Sunday that the bank must act quickly to address the risks of inflation.