Risk-on mood continues, stocks climb, dollar mixed
The risk-on mood with investors continues, as markets are driven higher by positive news on corporate earnings and US stimulus. The MSCI World [stock] Index gained for an eighth day, its longest run since November. The S&P 500 is opening up near 3924. The US dollar index is mixed against its peer currencies. The UK pound jumped over $1.38 to a fresh two-year high. Bond yields are largely unmoved -- US Treasuries holding at 1.15%. Oil and gold both edged higher, trading at $58.37 and $1848, respectively.
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February 10, 2021
EUR/USD 1.2131 GBP/USD 1.3852 USD/CAD 1.2684 AUD/USD 0.7747 USD/JPY 104.61 USD/CNH 6.4239 USD/ILS 3.2502 USD/MXN 20.0263 USD/CHF 0.8902 USD/INR 72.8450 USD/BRL 5.3953 USD/SGD 1.3251 USD/DKK 6.1310 USD/SEK 8.3025 USD/NOK 8.4205
The US dollar index is slightly lower overnight, but fairly mixed against its peer currencies – the CHF, EUR and GBP made gains, and the CAD, AUD and CNY showing losses. US CPI was released this morning, showing CPI YoY unchanged at 1.4%, highlighting Covid-19’s persistent check on inflation. Federal Reserve Chair Powell speaks today.GBP
The UK pound gained for the fifth day, reaching fresh highs near $1.3850 and its highest level since April 2018. The key driver is a weaker US dollar as the currency shrugs off a poor vaccine deployment in the UK.EUR
The euro moved slightly higher in line with the weaker dollar. Most European stock markets were in the green. There was little regional news today.CAD
The Canadian dollar is slightly lower despite higher oil prices and the generally weaker US dollar. There are no economic data releases for Canada today.ASIA/PACIFICAsian currencies are mostly lower, led by the NZ dollar’s decline of 0.4%. Asian stocks rallied, led by Hong Kong and China. Hong Kong officials gave approval for a new game from Tencent, which helped support HK’s Hang Seng index.
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