Dollar extends rally in wake of 10-year yields
The dollar extends its rally today in the wake of the 10-year yields hitting 1.6% and is stronger versus all peers. Risk sentiment is mixed and the passage of the latest covid relief bill in the house is unable to lift equity futures. Investors anticipate major central bank decisions coming in the next two weeks. Today is International Women’s Day.
Tuesday: Eurozone GBP
Wednesday: Bank of Canada rate decision, US CPI, MBA Mortgage Applications
Thursday: US Jobless Claims
Friday: Univ. of Michigan Sentiment, CA Unemployment Rate
March 8, 2021
EUR/USD 1.1885 GBP/USD 1.3846 USD/CAD 1.2639 AUD/USD 0.7682 USD/JPY 108.71 USD/CNH 6.5380 USD/ILS 3.3375 USD/MXN 21.7721 USD/CHF 0.9330 USD/INR 73.25 USD/BRL 5.7180 USD/SGD 1.3468 USD/DKK 6.2570 USD/SEK 8.5535 USD/NOK 8.5182
The dollar rose again to 3-month highs beating all G-10 peers. The Senate passed a $1.9T Covid relief bill on Saturday that is expected to be approved in the house on Tuesday. 10-year treasuries held above 1.6% this morning as investors bet that additional stimulus on an already recovering economy could overheat inflation.GBPThe pound fell 0.3% and is approaching the 55-DMA. 40% of the UK adult population have now been vaccinated and more than a million people have now received two doses of the vaccine – schools across England will open today for the first time in two months as a first step in the road to recovery.EUR
The euro lost 0.4% to the greenback after sell stops were triggered at 1.1890 on USD momentum. The eurozone continues to struggle to contain Covid and vaccinate its population. Germany has extended its current lockdown and Italy is considering tougher nationwide controls.CAD
The loonie slipped versus the stronger dollar as treasury yields bring investors back to the US currency. Bank of Canada’s monetary policy decision is due out Wednesday. Oil prices climb after Saudi Aramco facilities were targeted by missiles and drones.ASIA/PACIFIC
The dollar rose versus the yen as upward momentum builds speculative option offers are being placed near 109.00. The Chinese yuan sold off all gains from this year, weakening 0.5% in the wake of the US treasury rally.
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