FX MARKET REPORT 17.02.2021

FX MARKET REPORT 17.02.2021

FX MARKET REPORT 17.02.2021

Daily Commentary
Daily Commentary
FX MARKET REPORT 17.02.2021
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FX MARKET REPORT 17.02.2021

Cable witnessed some selling during the first half of the trading action on Wednesday and retreated further 34-month tops, around mid-1.3900s touched in the previous session. The downtick was sponsored by some follow-through US dollar buying interest, which remained well supported by the recent runaway rally in the US Treasury bond yields. The market has been pricing in the prospects for the passage of the US President Joe Biden’s proposed $1.9 trillion stimulus package. The reflation trade, in turn, pushed the yield on the benchmark 10-year US government bond to the highest level since February 2020, around 1.30% and was seen as a key factor that underpinned the greenback demand. That said, the downside remains limited amid optimism that the impressive pace of vaccinations in the UK would allow the UK Prime Minister Boris Johnson to lift COVID-19 restrictions and get the economy moving. EUR/USD remains under pressure below 1.2100 ahead of the European open, as the US dollar clings to the recent gains amid a rally in the US Treasury yields. The dollar index was up 0.3% at 90.757, bouncing from the three-week low of 90.117 hit on Tuesday. USD/JPY was flat at 106.06, after earlier hitting a five-month high, while the risk-sensitive AUD/USD fell 0.1% to 0.7746.

Cable witnessed some selling during the first half of the trading action on Wednesday and retreated further 34-month tops, around mid-1.3900s touched in the previous session. The downtick was sponsored by some follow-through US dollar buying interest, which remained well supported by the recent runaway rally in the US Treasury bond yields. The market has…

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