Forex Today: The return of King Dollar

FXStreet Team FXStreet

What you need to know on Wednesday, February 3:

The American dollar strengthened further, surging to fresh 2021 highs against EUR, AUD and CHF. Nevertheless, it appreciated against all of its major rivals.

The catalyst was progressing US stimulus talks. Talks between US President Joe Biden and Republican senators were productive, according to Senator Susan Collins. Nevertheless, there’s a huge difference between Biden’s $1.9 trillion package and Republicans counter offer of roughly $ 600 billion. Additionally, Democratic congressional leaders pushed forward a budget resolution, allowing them to pass Biden’s coronavirus relief bill without Republican support.

The GBP/USD fell to the 1.3610 level, bouncing afterwards. It’s the second time this year that the pair bounces from the level. The third time could be a charm.

The Canadian dollar was the best performer against the greenback, as crude oil prices soared to their highest in a year, amid signs of supply tightness. WTI settled at $54.70 a barrel.

Gold prices, on the other hand, plunged, partially weighed by renewed dollar’s demand, and partially undermined by retreating Silver prices as retail investors’ frenzy keeps receding.

Equities soared on optimism, with global indexes closing in the green.

Coronavirus immunization continues at a choppy pace. Delivery delays persist in Europe, while Israel and the UK accelerate the pace of vaccination. Restrictive measures have been extended in Scotland and Japan. The global number of new cases receded from record lows and stands at October 2020 levels, although the death toll remains elevated. Hopes persist that an economic comeback will take place in the second half of the year.

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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