The Dollar Dipped to Two-Week Lows, the Euro and Pound Rose

The U.S. dollar sank to near two-week lows on February 10 as demand for safer assets declined. Furthermore, the Switzerland crown reached its highest levels in a month versus the euro.

The world’s largest cryptocurrency, Bitcoin, fluctuated around $46,500 after hitting a lifetime high of $48,216. Bitcoin boosted by 20% overnight. Significantly, Tesla’s $1.5 billion investment in the dominant cryptocurrency caused a sharp rise.

The second-biggest cryptocurrency, Ethereum, hit an all-time high of $1,826 on Wednesday before declining slightly. Significantly, it was trading 1.1% higher at $1,791.

Furthermore, the Switzerland crown increased to a two-month high of 10.405 crowns per euro. It was driven by the Swedish central bank’s interest rate decision as the bank kept monetary policy intact on Wednesday.

Moreover, the U.S. dollar index touched a two-week low on 90.299 on February 10 for the first time this month and set for the third day of losses.

As we all know, the U.S. dollar is considered a safe-haven. According to the latest news, the greenback had declined against major peers as optimism over monetary and fiscal support, strong corporate earnings, and COVID-19 vaccines lifted risk sentiment.

Today’s decisions will show the future direction of the greenback

Furthermore, U.S. will announce consumer price inflation numbers for January at 1330 GMT. Moreover, Federal Reserve Chair Jerome Powell’s speech should be on Wednesday. Significantly, those two events will show the future direction of the dollar.

Traders are closely watching the dollar’s movement as President Joe Biden plans a $1.9 trillion fiscal stimulus package.

According to analysts, it is likely to speed a U.S. recovery relative to other countries, supporting the currency. However, it’s essential to mention that it is a major driver in a global reflation narrative that should lift riskier assets at the dollar’s expense.

Based on Westpac analysts, after a strong beginning of the year for the dollar, the latter view seems to be regaining sway.

Additionally, the American currency declined by 0.1% against the Japanese year and traded at 104.42. Significantly, the Japanese currency reached its highest level versus the dollar since January 29.

The yen has become correlated with outright yields than an indicator of broad risk sentiment. A 90-day rolling correlation among yen and U.S. yields has increased considerably since the last quarter of the past year.

The euro increased to $1.2142, adding to a three-day boost and reaching its highest since the start of the month.

Moreover, the British sterling also hit a three-year high of $1.3853

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