The price of the US dollar versus a number of its primary currency rivals appears to have leveled off on Friday. The recent plummet brought about by the Federal Reserve’s latest policy statement may still have momentum, but today’s suppressed market liquidity is helping the greenback consolidate around its current price levels.
Affecting the market in today’s trading sessions primarily is the Royal Wedding in Great Britain, which has closed all banks in Britain and captivated an international audience. The result has been limited trading among European investors leading to corrective price movements in the forex market.
Also limiting in this morning’s Asian session was a major bank holiday in Japan which kicked off a week of holidays known as Golden Week in the island economy. With Japanese banks largely absent until after May 5, yen movements will likely be driven by the effects wrought by the USD in next week’s trading sessions.
The stability of the US dollar in today’s trading, however, is more likely associated with thin trading than with market fundamentals, many analysts have said. The start of next week should see the return of relatively normal liquidity which in turn will likely push back down on the greenback as the week progresses.