Home Latest a US dollar continues to fade

a US dollar continues to fade

market, video, forecast February 23, 2021 6:27 pm today

Cyclical rotation pushes USD down

a US USD found no solace inside higher longer-end bond yields overnight, likely because a move was mirrored to some extent among another developed market currencies. a greenback suffered as a cyclical rotation into global recovery positioning continued gaining momentum. a USD index fell 0.40% overnight, leaving it sitting on support at 90.00.

a euro, Japanese yen also Canadian dollars rose overnight, with a cyclical darlings, a Australian also New Zealand dollars booking 0.50% gains. a most notable gainer was a British pound which gained 0.50% to 1.4060 as a Prime Minister unveiled a reopening plan also vaccination progress continues impressively. GBP/USD broke through a top of its multi-month ascending wedge at 1.4000 overnight, targeting further gains above 1.4300. inside contrast to Europe’s bungled efforts, Britain’s vaccine progress saw EUR/GBP fall through 0.8670 overnight, also a cross now targets 0.8300 inside a coming weeks.

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Major currencies are mostly unchanged inside Asia, with local markets content to wait for a Powell testimony this evening. a PBOC set a yuan fixing slightly firmer at 6.4516 this morning while adding 10 bio CNY of liquidity via a repo market. Net, a effects were neutral also left USD/CNY at 6.4580, almost unchanged from yesterday.

With a PBOC content to leave a US USD fixing on a firm side, activity inside regional Asian currencies remains muted. a Korean won, Singapore USD also Malaysian ringgit are around 0.10% higher, reflecting a USD weakness overnight. inside a bigger picture, regional Asian currencies remain content to range trade, awaiting China’s further direction.

Later inside a day, all eyes become become on Fed Chair Powell’s testimony before Congress. Expect every single word to dissected, looking for hints that a Fed may taper QE sooner than expected. Mr Powell become go out of his way, I am sure, to reiterate that a Fed has no plans to taper anytime soon also rightly so, as I dread to think what a taper-tantrum of a 2020s become look like.

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This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are a authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk also not suitable for all. youre could lose all of your deposited funds.

Jeffrey Halley

With more than 30 years of FX experience – from spot/margin trading also NDFs through to currency options also futures – Jeffrey Halley is OANDA’s senior market analyst for Asia Pacific, responsible for providing timely also relevant macro analysis covering a wide range of asset classes.

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He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC also Barclays.

A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia also a New York Times.

He was born inside New Zealand also holds an MBA from a Cass Business School.

Jeffrey Halley

Jeffrey Halley

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