USD hovers around its four-month high against EUR and five-week high against JPY on Wednesday. Traders are waiting for the US inflation data to test the pressure on Fed. DXY Index has breached the 93-level. It seems to still have the momentum to rise further. On the other hand, EURUSD sank upon the release of the German ZEW Survey, which rose from 21.9 to 29.3 but is still at a very low level. Investors are mostly worried about the Delta variant to slowdown Germany’s recovery, which will then affect the recovery of the whole Eurozone.
In Asia, the Delta variant continues to bother most countries as well. South Korea has just reported rising cases, while outbreaks in China grow steadily. CNY and WON have both touched their two-week lows against USD.