The Dollar Stands Near Two-Weeks Low, the Pound Boosted


On February 11, the U.S. dollar traded near two-week lows on a holiday-thinned Asia session. Furthermore, soft U.S. inflation and FED’s promise to keep rates low reinforced anticipations of meager returns from the reserve currency.

The risk-sensitive currency, the Australian dollar, stood below a two-week low hit overnight. Meanwhile, the euro stood at $1.2119, close to its highest since February 1.

The British pound settled at a close to a three-year peak of $1.3865. Significantly, the sterling increased by receding hopes for negative interest rates in the United Kingdom.

Moreover, in China and Japan, moves were slight, and trade was lightened by the Lunar New Year holidays. The American currency against a basket of other currencies stood at 90.387. Significantly, it hit a two-week low of 90.249 in the wake of U.S. inflation figures.

Another essential thing to mention is that U.S. core inflation last month was zero, while market anticipation was 0.2%.

An easy policy is likely to be negative for the greenback

According to Westpac currency analyst Imre Speizer, an easy policy is likely to stay there for a long time, which should be a negative for the greenback.

The safe-haven Japanese yen reached a two-week high of 104.41 per dollar overnight and last traded a fraction softer at 104.59 per dollar.

The world’s largest cryptocurrency, Bitcoin, had declined 7% and settled at $44,786. Significantly, it hit a record high on Tuesday and traded at near $48,000.

For example, in New Zealand, where the containment of the virus was successful, increasing accommodation prices have inflation running above expectations, and investors are scaling back further rate cutting anticipations.

Across the Tasman Sea, the risk-sensitive currency, the New Zealand dollar, stood at $0.7222 on February 11.

Later on Thursday, European Commission economic forecasts will be announced, as are U.S. labor market figures, with investors watching the data to measure the relative progress in recovery.

  • Support
  • Platform
  • Spreads
  • Trading Instument

For more news updates, visit our homepage now and see our latest news article. Want to learn more about trading? Visit our education page now and learn for FREE!


Leave a Reply