The “greenback” found a reason to get stronger. Overview for 07.10.2021

EURUSD dropped again; the USD remains strong.

The major currency pair got under another wave of market pressure. The current quote for the instrument is 1.1558.

Yesterday’s surge in the American currency was caused by a rally in the US 10-year bond yield. Apart from that, the continuous uptrend in energy commodities made investors think that inflation might boost on a global scale, and that reduced the risk appetite. “Safe haven” assets are once again got on market players’ radars.

Investors believe that everything that is happening on financial markets right now is a consequence of all possible inflation concerns, and nothing else.

These concerns may have an influence on the US Fed’s intention to revise the parameters of its QE program. The regulator is expected to make its first moves next month and announce exact dates and volumes in the nearest future. 

The ADP Non-Farm Employment Change published yesterday was positive as it showed 568K in September after being 340K in the previous month and against the expected reading of 425K. 

Now market players are paying their undivided attention to the reports to be published on Friday, which may provide insight into what is happening in the country’s economy and illustrate the Fed’s readiness to wind up stimulation.