FX MARKET REPORT 18.02.2021

FX MARKET REPORT 18.02.2021

FX MARKET REPORT 18.02.2021

Daily Commentary
FX MARKET REPORT 18.02.2021
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FX MARKET REPORT 18.02.2021

GBP/USD caught some aggressive bids during the early European session. The momentum pushed the pair back above the 1.3900 round-figure mark. President Joe Biden may struggle to pass his proposed $1.9 trillion covid relief program and that means less debt issuance. In turn, Treasury yields may drop off their highs, and make the dollar less attractive. The Federal Reserve’s sanguine approach to inflation may take some of the air out of the rally. The single currency regains the smile following recent losses and motivates EUR/USD to reclaim the 1.2070 region on Thursday. The corrective downside in the greenback follows a drop from recent yearly highs of yields of the US 10-year reference, which managed to climb to as high as the 1.33% zone on Wednesday and drop to the current 1.28% neighbourhood afterwards. The dollar index was down 0.1% at 90.903.  USD/JPY was down 0.1% at 105.81, while the risk-sensitive AUD/USD rose 0.1% to 0.7758. The Federal Reserve released the minutes from its January policy meeting on Wednesday, and these reinforced its plans to let the economy overheat while maintaining an ultra-accommodative monetary policy.

GBP/USD caught some aggressive bids during the early European session. The momentum pushed the pair back above the 1.3900 round-figure mark. President Joe Biden may struggle to pass his proposed $1.9 trillion covid relief program and that means less debt issuance. In turn, Treasury yields may drop off their highs, and make the dollar less…

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