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


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

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 

EUR/USD News

GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 

GBP/USD News

Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures