The euro rallied against the dollar boosted by some positive releases from the euro area, while some negative macro reports limited the single currency’s gains. The EUR/USD currency pair also benefitted from the drop in US 10-year Treasury yields as investors wait for President Joe Biden’s infrastructure spending plans.
The euro fell to new 2021 lows against the dollar despite the release of upbeat macro reports from across the euro area as investor sentiment remained bearish. The EUR/USD currency pair’s decline was fueled by the dollar’s overall strength buoyed by the rising real US 10-year Treasury yields that lifted the world’s reserve currency.
The Turkish lira weakened against the US dollar and the euro to kick off the trading week, flirting with 8.19 and 9.65, respectively. Despite piling onto its losses from the last week, the lira’s descent appears to have somewhat eased. Foreign investors have seemingly lost a lot of confidence in Ankara, but the leadership is urging everyone to calm down and adopt a wait-and-see approach.
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 South African rand is rebounding against its US peer in the middle of the trading week. With a renewed rally in the broader financial markets, investors are pouring back into emerging market currencies. Can the rand maintain support below the 15.00 mark against the greenback? It might depend on the economic recovery and the market’s appetite for EM currencies.
The Turkish lira is still sliding against its US peer on Tuesday, but the currency’s plunge has cooled down after Turkey’s central bank chief was axed after only four months on the job. Following the initial shock, investors — at home and abroad — are weighing the situation and deciding what is next. The continuing fallout suggests that foreign capital is fleeing Ankara.
The Turkish lira extended its winning streak to two on Friday, buoyed by the central bank raising interest rates more than what the market had anticipated. The lira had been struggling over the last month following its incredible that started in November. Now that Turkey has shown its willingness to tighten monetary policy, could the lira break below 7 against the US dollar?
The euro fell against the dollar, erasing most of yesterday’s gains after the dovish FOMC rate decision as the dollar recovered, surging higher. The EUR/USD currency pair fell amid a risk-off market environment as investors gravitated towards the higher-yielding dollar while dumping the riskier currencies.
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 Australian dollar was strong today, reversing yesterday’s losses and gaining against all of its most-traded rivals. With the lack of any major macroeconomic releases, the possible reason for the currency’s strength was the unveiling of a stimulus package for Australia’s tourism industry.
