Demand for safe haven assets dampens on global recovery optimism
The US dollar weakened slightly against its peers as investors shifted away from risk-off trading. The continued hope for a global recovery based on the vaccine rollout has caused downward pressure on the greenback. Cold temperatures in the US have resulted in oil refinery shutdowns - driving crude oil prices higher.
Economic news this week:
Tuesday: Eurozone GDP
Wednesday: Canada CPI, UK CPI
Thursday: US Initial Jobless Claims, US Housing Starts
February 16, 2021
EUR/USD 1.2103 GBP/USD 1.3884 USD/CAD 1.2691 AUD/USD 0.7749 USD/JPY 105.7400 USD/CNH 6.4268 USD/ILS 3.2405 USD/MXN 20.1882 USD/CHF 0.8923 USD/INR 72.6987 USD/BRL 5.3778 USD/SGD 1.3270 USD/DKK 6.1432 USD/SEK 8.2882 USD/NOK 8.4272
USDThe greenback fell as demand for haven assets diminished on optimism that fiscal stimulus in the US and the vaccine rollout will support a global economic recovery. The Bloomberg dollar index is down 0.2%.GBPSterling climbed to 1.3952 after touching a fresh high not seen since 2018. GBP/USD approached the psychological level of 1.40 as virus concerns in the UK ease.EUREUR/USD hit a one-week high of 1.2169 following pressure on the US dollar as markets were optimistic on a global recovery. The currency pair has since retreated from key Fibonacci level of 1.2170.CADUSD/CAD continues to trade within the 1.26 handle despite crude oil prices surging higher on the freeze in production. The cold weather in the US has caused refineries to shut down resulting in WTI oil trading near $60/bbl.ASIA/PACIFICUSD/JPY rose to highest level since Feb 8 as demand for safe haven assets dampened. New lockdown restrictions in New Zealand have not negatively effected the kiwi. The currency continues to trade near YTD highs as investors see the potential of lockdown easing to push the currency higher.
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