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The US dollar weakened across the board as investors reacted to the rising US national debt

The US dollar weakened across the board as investors reacted to the rising US national debt. In a statement during the weekend, the Congressional Budget Office (CBO), a nonpartisan organization, said that the US deficit will soar to more than $2.3 trillion this year, excluding the proposed $1.9 trillion stimulus package. Now the U.S. Dollar Index is at 90.31.

 

The stock markets are closed on Feb. 15, 2021, in observation of Presidents' Day. Cash will reopen on Tuesday following the three-day holiday weekend that commemorates the birth of America's first president. However, the futures are pointing to a strong open when they do return with the US 500 contract trading up 0.47% now, to 3,949.38.

 

Later today, the RBA Meeting Minutes will be released, which may bring further volatility to the Aussie pairs. And in the European session, German ZEW Economic Sentiment data is going to be published.

 

EURUSD has bounced back from session lows of just below the 1.2120 mark in recent trade, saved weakness in the US dollar, but has been unable to get back to last week’s highs around 1.2150 or indeed session highs set early in the European session in the 1.2140s. On the day, the pair trades with modest gains of about 20 pips or 0.15%.

 

It’s been a stellar session for the pound sterling, despite market volumes being low on account of market closures across China and North America. Cable has managed to reclaim the 1.3900 level, though volatility has died right down since European participants left the market around 17:00GMT. Volumes should pick up again from 23:00GMT onwards as Asia flow arrives. At present, the pair trades higher by about 0.5% or 60 pips on the day. In terms of on the monthly performance, the pair is up over 1.5% and, out of the G10, is only being outperformed by AUD and NOK.

 

AUDUSD stays firm near the monthly peak, easing from 0.7790 to 0.7785 off-late, as the Asian begins for Tuesday. The Aussie pair began the week on a positive note despite holidays in the US and China, not to forget lockdown in Victoria, as market sentiments cheered anticipated nearness to the US coronavirus (COVID-19) stimulus and positive developments concerning the virus vaccines.

 

NZDUSD is a little higher amid low volumes and after failing to break above 0.7250. The kiwi has for the most part shrugged off concerns regarding a new snap lockdown in New Zealand.

 

USDJPY is finding resistance in the 105.80s and the focus is on the downside from the monthly supply. On a break higher, bearish liquidity would be expected to firm.

 

USDCAD dropped below 1.2650 to hit fresh monthly lows on Monday. The loonie is being boosted by risk-on, strength in crude oil prices, and strong Canadian data.

 

Gold spent a whole trading day moving sideways, now the price is trading around $1818.

 

Prices of the West Texas Intermediate advance for the second consecutive session on Monday, returning to the area above the $60.00 mark per barrel for the first time since January 2020.

 

Bitcoin is now around $48111 and in a strong bullish trend. The price is expected to break new high in the coming days and also lift the price of other cryptocurrencies.

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