US Dollar Plunges, But Remain High Against The Euro

US dollar plunges

The US dollar plunged during the morning session of Thursday Asia. However, it remained around 14 months high against the euro. Investors and traders have concerns over surging the resultant inflation and soaring energy prices that could send economic recovery from the Coronavirus pandemic for a toss. While their eyes are also hooked on asset tapering timeline by US Federal Reserves. 

Per euro, the US currency got steadied at USD 1.1558. On Wednesday, it has strengthened to USD 1.1529. It was the maiden time since 2020, July. 

The US Dollar index edged down to 94.248 or 0.03 per cent at 2:53 AM GMT (10:53 PM ET). The USD/JPY pair edged up to 111.47 or up by 0.06 per cent. 

The AUD/USD pair climbed up to 0.7280 by 0.11 per cent. On the other side, NZD/USD pair surged to 0.6917, up y 0.11 per cent. 

The USD/CNY pair remained at 6.4467. Notably, Chinese markets are shut following a holiday. The GBP/USD pair edged up to 1.3582 by 0.01 per cent. 

Interestingly, Crude oil reached a 7-year high overnight and eased from the recent gains subsequently. Meanwhile. Natural gas also soared to a record high in Europe. On the other hand, coal prices hit all-time highs from major exporters. 

Chris Weston, head of research, Pepperstone said in a note that the talks on the floor over natural gas were deafening. It was all on broad markets and social media. The note was titled OMGas.  He added that stagflation was something that traders feared. Chris questioned how central banks would deal with events driven by the stagflation shock of supply. 

More importantly, investors and traders are monitoring progress on the debt ceiling negotiations of the US. It resulted when Mitch McConnell, Senate Minority Leader stated that his party Republican was allowing an extension to the federal debt ceiling until December 2021. 

Moreover, the latest jobs report of the US is also awaited. That includes non-farm payrolls. It is slated to come on Friday. Additionally, on Wednesday, the ADP non-farm employment change was released for September. It was more than anticipated numbers 568,000. It was due to plunging numbers of COVID-19 that is allowing Americans to move to other places for eating out, travelling and other high-contact activities. 

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