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

AUD/USD traders get set for this week's RBA key event

AUD/USD traders get set for this week's RBA key event

AUD/USD corrected from a key area on the charts on Friday with a test back through 0.64 the figure hardly left a mark on the downtrend that remains the bias for the start of the week and ahead of the Reserve Bank of Australia.

AUD/USD News

EUR/USD oscillates around 0.9800 as investors prepare for US employment data

EUR/USD oscillates around 0.9800 as investors prepare for US employment data

The EUR/USD pair is displaying back-and-forth moves around 0.9800 in the early Tokyo session. The asset has turned sideways in a 0.9780-0.9815 range as the currency domain is developing itself ahead of the US employment data.

EUR/USD News

Gold marches towards $1,680 amid lower consensus for US ISM data

Gold marches towards $1,680 amid lower consensus for US ISM data

Gold price has given an upside break of the minor consolidation, in early Asia, formed in a $1,660.20-1,663.32. The precious metal is marching towards the critical hurdle of $1,680.00 as the market participants are expecting a decline in the US ISM Manufacturing PMI data.

Gold News

Polkadot price at risk of printing new lows for 2022

Polkadot price at risk of printing new lows for 2022

Polkadot (DOT) price action has been on the cusp of breaking the chains of the bear market as, at one point this week, bulls tried to make a run for $6.92. Instead, they were cut short in their tracks by a very simple technical cap.

Read more

Fed resorts to brute force in desperate bid to regain respect

Fed resorts to brute force in desperate bid to regain respect

Another tumultuous week of trading in asset markets is raising hopes for a peak in the USD and a bottom in precious metals. The Fed note spiked again versus the euro and other troubled foreign currencies on Monday before pulling back sharply mid-week.

Read more

Forex MAJORS

Cryptocurrencies

Signatures