The British pound fell against the much stronger dollar, extending yesterday’s losses amid disappointing UK inflation figures attributed to massive discounts and lockdown measures. The GBP/USD currency pair’s decline was also driven by negative investor sentiment as markets anticipate the disruption of Britain’s vaccination drive due to supply interruptions.
The Canadian dollar is modestly sliding against its US peer in the middle of the trading week, ostensibly hitting the pause button as one of the world’s top-performing currencies. The loonie is paring its gains mostly on falling energy prices, as well as investors seeking shelter in conventional safe-haven assets, like the US dollar and the Swiss franc. But what about domestic data?
The euro rose intraday, boosted by good domestic macroeconomic data. Despite that, the currency has been retreating during the time of writing, trimming gains against some of its rivals and losing them outright versus others.
The euro fell against the dollar fueled by the negative investor sentiment following dovish comments from an ECB policymaker regarding rising European yields. The EUR/USD currency pair’s rally was further driven by the surge in US Treasury yields as bonds sold off following the signing of the $1.9 trillion US stimulus bill.
The US dollar weakened for the second consecutive session on Thursday as improving jobs data and another rally in the broader financial markets reduced the currency’s safe-haven appeal. The greenback has come under pressure this week restarting its surprising 2021 rally. With inflation fears widespread and the economy ostensibly recovering, is it high noon for the dollar?
The US dollar weakened in the middle of the trading week as all eyes will be on the Treasury auctions. The greenback has been strengthening this month following a lackluster February, buoyed by turmoil in the financial markets and soaring bonds. Can the buck continue its journey upward, or will it fall back to earth? Inflation and the Treasury market could be the deciding factors.
The Turkish lira extended its weakness against the US dollar in the middle of the trading week. Despite being one of the few economies to avoid a contraction during the coronavirus pandemic in 2020, the lira has been witnessing a selloff in foreign exchange markets. Inflation continues to be a significant worry for investors.
The Japanese yen strengthened against its US counterpart to finish the trading week amid reports that the central bank is reconsidering loose monetary policy to spur economic growth. This comes as the Bank of Japan (BoJ) conceded that the world’s third-largest economy is recovering and returning to pre-pandemic levels.
The US dollar is holding steady against many of its major currency peers in the middle of the trading week. Inflation came into focus for foreign exchange markets on Wednesday, as well as the likelihood that the US government will pass President Joe Biden’s $1.9 trillion stimulus and relief package. After an impressive start to 2021, the buck has taken a breather, sliding nearly 1% over the last week.
The New Zealand dollar performed the same way as its Australian counterpart today: rising initially but retreating later. That is despite the supportive market sentiment and positive domestic macroeconomic data.
