Dollar ticks up ahead of preliminary Michigan consumer sentiment
The US dollar hit a bottom at the beginning of the year, and it has since recovered quite strongly. However, sentiment appears to be shifting with the dollar pulling back this week and much of that has to do with the persistent strength of US equities. The dollar index is trying to recoup some of the previous days’ losses, rebounding off the 50-day simple moving average (SMA) around 90.40. Shares on Wall Street closed higher on Thursday, but US stock futures are drifting lower today.
The University of Michigan’s preliminary consumer sentiment for the US will be released at 15:00 GMT. In the previous month, the index was revised lower to 79 in January from a preliminary of 79.2 and below 80.7 in December.
Also, on the agenda is the virtual meeting of the Group of Seven (G7) finance ministers from Britain, Canada, France, Germany, Italy, Japan, the United States, and the European Union. The discussions will focus on the affects of the Covid-19 pandemic, emerging market debt, implementation of digital taxation and central bank digital currency.
EU-UK still in discussions; euro falls below 1.21
The UK and the European Union did not resolve the key disagreements over trade, despite the rare meeting between UK Cabinet Office Minister Michael Gove and European Commission Vice-President Maros Sefcovic in London.
Today, Bank of England Chief Economist Haldane made some upbeat comments about the UK recovery. Haldane said the economy will bounce back “like a coiled spring” as lives start coming back to normal and people spend their recent savings. This is reflected in the upbeat outlook that the bank presented at its latest meeting earlier this month. The pound is losing ground below the $1.38 level versus the US dollar. However, pound/yen is advancing above 145.00, while euro/dollar is retreating beneath $1.21.
Victoria back in lockdown; US waits more vaccines
In terms of coronavirus pandemic, the Australian state of Victoria will shut down again for five days as there are many concerns around the spread of a Covid-19 variant. Also, President Biden has announced that the US has a deal for additional 100 million doses from Pfizer Inc, and Moderna Inc.
Origin: XM
