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The greenback loses further the grip and drops to session lows near 90.50

The greenback, in terms of the US Dollar Index (DXY), loses further the grip and drops to session lows near 90.50. The selling momentum around the index picks up the extra pace on Thursday after Initial Claims rose by 861K during last week, disappointing consensus. On the brighter side, the Philly Fed manufacturing gauge bettered forecasts at 23.1 in February albeit easing a tad from January’s reading (26.5).

 

Major equity indexes in the US opened in the negative territory for the second straight day on Thursday as safe-haven flows continue to dominate the financial markets. As of writing, the S&P 500 was down 0.75% on the day at 3,901, the Dow Jones Industrial Average was losing 0.8% at 31,353 and the Nasdaq Composite was falling 1.15% at 13,544.

 

In terms of economic data, later today in the European session, the UK Retail Sales, Composite PMI, Manufacturing PMI, and Services PMI are going to be released. The series of UK data may affect the related pairs significantly in the short-run.

 

EURUSD recovery continues after dismal US data but at this the point, further gains seem unlikely unless the pair breaks above the 1.2100 level

 

The GBPUSD is about to post the highest close since April 2018 as it trades around 1.3950. Earlier on Thursday, it climbed to 1.3986, the new cycle high, and then pulled back, finding support at 1.3925.

 

The USDCHF pair gained more than 70 pips on Wednesday and fluctuated in a tight range a little below 0.9000 on Thursday.

 

AUDUSD saw some selling pressure in the first half of the US the trading session, dropping from mid-European session highs of only about 10 pips away from the 0.7800 level to session lows just above the 0.7730 mark. However, over the last few hours, the pair has recovered back into the green and now trades in the 0.7760s, up about 0.2% or around 15 pips on the day.

 

The NZDUSD pair advanced to a fresh daily high of 0.72222 in the early American session but struggled to preserve its bullish momentum. As of writing, the pair was up 0.33% on the day at 0.7212 and was on track to snap a two-day losing streak.

 

The USDCAD dropped to a daily low of 1.2660 during the early trading hours of the American session but didn't have a hard time staging a rebound with falling crude oil prices hurting the commodity-sensitive loonie. Now, the pair was virtually unchanged on a daily basis at 1.2703.

 

Gold is currently trading at $1,774 and virtually flat on the session having moved with a relatively tight range between $1,768.59 and $1,789.63. There has been a pause in volatility on Thursday as the greenback and US yields take a breather in their advance this week.

 

WTI is back below the $61.00 mark and down about 40 cents or 0.7% on the day. The stock market downside, downbeat jobs data, and India lockdown concerns all weighed on Thursday. A bullish EIA report has taken the edge off of losses, however.

 

Yesterday was another good day for Bitcoin investors: the price rallied from $48745 to around $52660. With the rise of bitcoin, other cryptocurrencies moved up as well, some of them even hit a new historical high.

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