Forex Today: Dollar extends decline, Bitcoin holds high ahead of US inflation, Powell's speech

Yohay Elam FXStreet

Here is what you need to know on Wednesday, February 10:

The dollar has been extending its decline as markets remain mostly upbeat, awaiting news on stimulus and cheered by vaccine prospects. US inflation figures and a speech by Federal Reserve Chairman Jerome Powell are eyed.

US ten-year Treasury yields have stabilized around 1.15%, after rising beforehand. This current calm in the bond market has made way for the risk-on mood to take over. While the S&P 500 did not reach new highs on Tuesday, equity markets in Asia and Europe are on the rise.

The US Senate is consumed by former President Donald Trump's trial for inciting insurrection on the Capitol and progress toward passing a large fiscal stimulus seem to have stalled. Nevertheless, any development on that front will be closely watched by investors. Democrats are pushing for a large relief plan, but probably below President Joe Biden's original $1.9 trillion proposal.

EUR/USD has topped 1.21 despite Europe's slow vaccination rollout. GBP/USD has surpassed 1.38, hitting the highest since 2018. Commodity currencies are also on the rise, with USD/CAD falling below 1.27, buoyed also by oil prices gushing higher. WTI Cure is changing hands close to $59.

UK vaccine news: One dose of the Pfizer/BioNTech coronavirus vaccine causes two-thirds protection while the second dose raises it to 80%. The UK has opted to space administering of these doses.

US inflation figures for February are of interest amid growing concerns that stimulus would trigger a rise in prices. Both the headline Consumer Price Index and Core CPI are set to rise by 0.2% monthly.

See US Consumer Price Index January Preview: Can consumer demand spur prices?

Jerome Powell, Chairman of the Federal Reserve, is slated to speak about the economy later in the day and may hint about the bank's next moves. A focus on slack in the labor market will likely reinforce the Fed's dovish stance, weighing on the dollar and supporting markets.

Bitcoin has stabilized at around $46,000 after Tesla's decision to invest in the cryptocurrency boosted it early in the week. Other digital coins are also on the rise.

More Cryptocurrencies Price Prediction: Bitcoin, Litecoin & Filecoin

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

GBP/USD: Daily gains remain capped by 1.3650

GBP/USD leaves behind Monday’s pessimism and advances marginally on Tuesday. Cable’s humble gains, however, appear to have met quite a decent resistance in the 1.3650 zone for now, in a context of a slight selling pressure hovering around the Greenback.

EUR/USD picks some pace, retests 1.1670

EUR/USD advances modestly and revisits the 1.670 zone on turnaround Tuesday. The pair’s slight advance comes after two daily drops in a row and follows the humble decline in the US Dollar, while investors gear up for upcoming US data and the Jackson Hole Symposium.

Gold treads water around $4,650

Gold navigates the middle of its daily range near $4,650 per troy ounce on Tuesday. The lack of clear direction in the yellow metal comes on the back of the widespread cautious tone among market participants, a mildly offered stance in the US Dollar and a marked decline in US Treasury yields across the curve.

Crypto Today: Bitcoin soars past $80K as Ethereum and XRP hold gains

Bitcoin (BTC) is trading above $80,000 on Tuesday. This is the highest level the Crypto King has traded since mid-May, underscoring a positive shift in investors' risk-on sentiment, liquidity conditions and the technical outlook.

Nvidia earnings: A quick look at expectations

The 2026 Q2 earnings season is nearly over for S&P 500 members, with the reporting cycle notably positive. But looming large this week is none other than AI-favorite NVIDIA (NVDA) , whose results will wrap up the reporting cycle for the Magnificent Seven group as well.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.