FX MARKET REPORT 25.02.2021

FX MARKET REPORT 25.02.2021

FX MARKET REPORT 25.02.2021

Daily Commentary
FX MARKET REPORT 25.02.2021
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FX MARKET REPORT 25.02.2021

GBP/USD has bounced off the lows as Powell’s dovish message weighs on the dollar. An attack on 1.42 looks imminent, Markets seemed to have been waiting for a further reassuring from Jerome Powell, Chairman of the Federal Reserve, before making another convincing move higher. The upbeat mood is adverse for the dollar, despite higher bond yields. The British pound remained well supported by the impressive speed of the coronavirus immunization campaign and the UK government’s plan to ease the current lockdown measures. In fact, UK Prime Minister Boris Johnson has already unveiled a new four-step plan to end restrictions by 21 June. The Relative Strength Index on the 4-hour chart has dropped below 70, exiting overbought conditions and opening the door to further gains. Momentum remains to the upside and the cable continues trading above the 50, 100 and 200 Simple Moving Averages. EUR/USD clears the 1.2200 hurdle and advances to multi-week highs on the back of the now increasing selling pressure surrounding the greenback. The dollar index fell to its lowest since early January on Thursday and dropped to three-year lows against the Australian and Canadian dollars, after dovish signals from the U.S. Federal Reserve boosted the reflation trade in currency markets.

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GBP/USD has bounced off the lows as Powell’s dovish message weighs on the dollar. An attack on 1.42 looks imminent, Markets seemed to have been waiting for a further reassuring from Jerome Powell, Chairman of the Federal Reserve, before making another convincing move higher. The upbeat mood is adverse for the dollar, despite higher bond…

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