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 US dollar bounced back from Wednesday’s loss, rallying on concerns in the broader financial markets and economy following the latest initial jobless claims. The greenback also jumped on the bump in Treasury yields, with investors anticipating higher inflation. Can the buck claw back from its recent weakness?
The euro spiked higher against the dollar, triggered by the dovish tone adopted by Fed Chairman Jerome Powell after announcing the bank’s interest rate decision. The EUR/USD currency pair had traded sideways for most of today’s session before the spike higher, as the US Dollar Index crashed, boosting riskier currencies.
The Sterling pound fell against the dollar as markets reacted to dovish comments by the Bank of England Governor regarding the bank’s bond purchases. The GBP/USD currency pair recovered most of its losses later in the session largely due to the dollar’s weakness as more European countries halted AstraZeneca’s vaccine’s rollout.
The Sterling pound fell against the resurgent dollar fueled by the surging US Treasury yields that boosted the greenback against most of its peers amid a risk-off environment. The GBP/USD currency pair fell despite the UK’s economic recovery in January, as tracked by the GDP rising above analysts expectations.
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 Canadian dollar remained largely weaker than the US dollar, driven by the weak crude oil prices that weighed on the commodity-linked loonie. The USD/CAD currency pair’s gains went against the losses incurred by the greenback as US Treasury yields fell amid the expected increase in US bonds’ supply.
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 euro edged higher against the dollar, reversing a four-day losing streak boosted by the positive investor sentiment and falling US Treasury yields. The EUR/USD currency pair rallied higher, fueled by the positive German trade data combined with the dollar’s overall weakness, adding to the pair’s gains.
The euro fell to new yearly lows against the much stronger US dollar as the US Senate passed President Joe Biden’s stimulus bill with minor changes. The weak investor sentiment further fueled the EUR/USD currency pair’s decline as investors remained cautious, expecting the ECB to intervene in the markets.
