Risk-on mood weighed on the Dollar

Forex News FX



Share:

Risk-linked assets managed to gather extra steam on the back of renewed weakness surrounding the Greenback. In the meantime, investors now appear to favour the Fed’s rate cut in May, while geopolitical concerns remained unabated and global yields edged higher on Wednesday.

Here is what you need to know on Thursday, February 8:

Further selling pressure in the greenback prompted the USD Index (DXY) to challenge the 104.00 support amidst marginal moves in US yields and the prevailing risk-on environment. In the US, usual weekly Initial Jobless Claims are due on Thursday, along with Wholesale Inventories and the speech by Fed’s Barkin (Richmond).

EUR/USD traded in a bullish fashion for the second session in a row and revisited the 1.0780 zone amidst persistent risk-on sentiment and somewhat hawkish comments from the ECB’s Schnabel.

GBP/USD added to Tuesday’s gains north of 1.2600 the figure mainly following a persistent downward bias in the US Dollar. On Thursday, BoE’s Dhingra is due to speak.

USD/JPY regained some composure and rose past the 148.00 hurdle on Wednesday, deriving some support from the late small bounce in US yields. In Japan, the Echo Watchers Survey is due on Thursday, followed by Bank Lending figures and weekly Foreign Bond Investment results.

The Aussie dollar was an exception in the risk-associated universe and ended the session with modest losses in the low 0.6500s, as there was no respite for the selling pressure in both copper prices and iron ore.

In China, all the attention is expected to be on the publication of the Inflation Rate for the month of January as well as Producer Prices. USD/CNH traded with decent gains and regained the 7.2000 region, partially reversing Tuesday’s drop.  

Unexpected drops in gasoline inventories and distillate stocks, as per the EIA’s weekly report, underpinned another positive performance of WTI prices, which managed to trespass the $74.00 mark per barrel.

Gold prices ended Wednesday’s session barely changed above the $2030 mark per troy ounce, while Silver prices retreated to new two-week lows near $22.20 per ounce.



Risk-on mood weighed on the Dollar appeared first at: Source

forexnewsfx latest forex news fx
Latest Forex News | ForexNewsFX .com

error

Enjoy this blog? Please spread the word :)