Home Forex Dollar recovers as yields rise

Dollar recovers as yields rise

by Jonathan Adams
EUR USD

EUR/USD was trading near 1.21 while GBP/USD has been dropping below 1.38

Markets were calm due to holidays in Asia and as investors awaited news on US stimulus. The dollar was helped by rise in yields. US Consumer Sentiment and vaccine news remained in the spotlight.

US stocks have risen with the NASDAQ index hitting record highs. The move into equities has been accompanied by a shift away from bonds and rising yields have supported a recovery in the dollar. EUR/USD was trading near 1.21 while GBP/USD has been dropping below 1.38. Moves have been relatively subdued due to the New Year holidays in several Asian countries.

Following several weeks of encouraging figures, jobless claims rose to 793,000. The last release for the week included the University of Michigan’s preliminary Consumer Sentiment for February.

Former President Donald Trump’s trial continues to attract attention, pushing the progress on the stimulus bill to the backstage. Discussion about the details of stimulus checks seems to be the main sticking points separating moderate and liberal Democrats.

Meanwhile, gold continued to decline, falling back to around $1,820 after hittng $1,850 earlier in the week.

GBP/USD is expected to move after the first publication of Gross Domestic Product figures for the fourth quarter. Modest growth is expected.

Vaccine campaigns in the UK and the US have been accelerating based on timelines. Britain is turning to AstraZeneca’s, which are expected to be produced at a faster rate. Data from Israel, the world’s leader in immunization, are showing success in preventing severe disease. The Fed’s Patrick Harker said that the US economy will continue to be choppy until vaccination is over.

In cryptocurrencies, bitcoin continued to consolidate its gains and trades at around $47,000, Ethereum is above $1,700 and XRP has been moving above $0.50. Dogecoin is off its highs.

The US Justice Department has subpoenaed executives from Robinhood and other brokerages regarding their actions related to the GameStop frenzy.



Important
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Related News

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Know more