NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

FOREX-U.S. dollar dips for 4th day after weak data; bitcoin hits record high

Published 02/11/2021, 11:41 PM
Updated 02/11/2021, 11:50 PM
© Reuters.
USD/SEK
-
DX
-

* Softer-than-forecast U.S. jobless claims weigh on dollar
* Bitcoin hits another all-time peak
* Currency markets quiet, holidays in China and Japan
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

(Adds new comment, FX table, U.S. data, changes byline, dateline - previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Feb 11 (Reuters) - The dollar slipped on Thursday in quiet trading, weighed down by slightly
weaker-than-expected U.S. jobless claims data that followed tepid inflation numbers and a dovish message
from the Federal Reserve the previous session.
Currency moves however were confined to narrow ranges due to holidays in Asian markets.
In the cryptocurrency market, bitcoin hit another record of $48,481.45 BTC=BTSP , as it continues its
march toward the $50,000 mark. It was last up 6.3% at $47,685.
Thursday's data showed initial claims for state unemployment benefits totalled a seasonally adjusted
793,000 for the week ended Feb. 6, compared to 812,000 a week before. Economists polled by Reuters had
forecast 757,000 applications for the period. "While the data have improved lately, filings remain very elevated by pre-pandemic standards and also
have stayed above many of the figures reported back in October and November," Daniel Silver, economist at JP
Morgan, said in a research note.
In mid-morning trading, the dollar index was down 0.1% at 90.354 =USD . So far the dollar is on track
for its largest weekly loss since around mid-December.
Prior to this week, the dollar had gained more than 2% since January as investors covered extreme short
positions on the currency.
"Gains of the dollar that we saw over the past few weeks are just overdone and the downtrend we have
seen the last few days was due to Treasury yields coming off," said Ron Simpson, managing director, global
currency analysis at Action Economics in Tampa, Florida.
Data on Wednesday showed U.S. core inflation last month was zero, data showed on Wednesday, against
market expectations of 0.2%.
Federal Reserve Chair Jerome Powell reiterated on Wednesday that the central bank's new policy framework
could accommodate annual inflation above 2% for some time before raising rates, reinforcing market
expectations of weak returns from the dollar.
Powell's comments are keeping the dollar "somewhat on the defensive, but without any real definitive
reasons to break out of ranges", said Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets.
Currency market moves were small overnight because of holidays in Japan and China, but the dollar fell
close to two-week lows against a basket of currencies before recovering somewhat as European markets opened.
The euro was up around 0.2% against the dollar at $1.2138 EUR=EBS . A European Commission forecast that
the euro zone economy will rebound less than expected in 2021 did not impact the currency. "Going forward, the dollar is going to do better, against the euro for one," said Action's Simpson. "The
potential for economic recovery in Europe is looking pretty dismal right now."
The Australian dollar - viewed as a liquid proxy for risk appetite - was up 0.5% at US$0.7765. It hit a
three-week high earlier in the session of US$0.7772 AUD=D3 .

========================================================
Currency bid prices at 10:20AM (1520 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.3180 90.4290 -0.11% 0.375% +90.4710 +90.2610
Euro/Dollar EUR=EBS $1.2141 $1.2119 +0.18% -0.63% +$1.2150 +$1.2114
Dollar/Yen JPY=D3 104.6600 104.6700 +0.01% +1.35% +104.7850 +104.5900
Euro/Yen EURJPY= 127.06 126.74 +0.25% +0.11% +127.1600 +126.7100
Dollar/Swiss CHF=EBS 0.8901 0.8906 -0.04% +0.63% +0.8907 +0.8893
Sterling/Dollar GBP=D3 $1.3820 $1.3836 -0.14% +1.13% +$1.3859 +$1.3812
Dollar/Canadian CAD=D3 1.2673 1.2698 -0.19% -0.47% +1.2710 +1.2661
Aussie/Dollar AUD=D3 $0.7765 $0.7723 +0.56% +0.96% +$0.7771 +$0.7713
Euro/Swiss EURCHF= 1.0805 1.0787 +0.17% -0.02% +1.0806 +1.0787
Euro/Sterling EURGBP= 0.8784 0.8756 +0.32% -1.71% +0.8785 +0.8753
NZ NZD=D3 $0.7240 $0.7215 +0.33% +0.81% +$0.7251 +$0.7205
Dollar/Dollar
Dollar/Norway NOK=D3 8.4460 8.4660 -0.15% -1.56% +8.4760 +8.4420
Euro/Norway EURNOK= 10.2541 10.2597 -0.05% -2.03% +10.2790 +10.2380
Dollar/Sweden SEK= 8.3097 8.3204 +0.17% +1.39% +8.3306 +8.2979
Euro/Sweden EURSEK= 10.0899 10.0730 +0.17% +0.14% +10.1065 +10.0765

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates https://tmsnrt.rs/2RBWI5E
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.