Dollar remains firm amid stimulus hopes
The dollar remains firm today on optimism that the Senate will be able to pass Biden’s relief bill without having to garner Republican support. The eurozone continues to struggle to get their population vaccinated while trading is focused on positioning ahead of tomorrow’s ECB meeting.
“Everything comes at a cost. Just what are you willing to pay for it?”
February 3, 2021
EUR/USD 1.2024 GBP/USD 1.3646 USD/CAD 1.2806 AUD/USD 0.7615 USD/JPY 105.04 USD/CNH 6.4611 USD/ILS 3.3035 USD/MXN 20.1391 USD/CHF 0.8987 USD/INR 72.9613
The dollar is higher a third day holding above the 55D-DMA on upbeat sentiment surrounding stimulus negotiations. The Senate passed a resolution to debate on budget for the 2021 fiscal year, paving the way for Pres. Biden’s stimulus package to pass without republican support.GBP
The pound edged lower versus the dollar ahead of tomorrow’s Bank of England meeting. Investor focus has turned to tomorrow’s meeting where the BoE will publish the findings on what negative interest rates could mean for the country.EUR
The euro continues to lag on vaccine distribution concerns and as inflation rises to the highest level in five years. Following a breakdown in talks in Italy, former ECB president, Mario Draghi was asked to form a national unity government and will serve as Prime Minister.CAD
The Canadian dollar fell versus the greenback despite one-year highs in oil prices and improved risk sentiment.ASIA/PACIFIC
The yen trades rangebound versus the dollar as the pair awaits passage of the stimulus package before breaking out of its current tight trading range.
The yuan weakened against the dollar as banks bought the US currency to offset corporate dollar selling ahead of the Lunar New Year which begins Feb. 11th.
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