US Dollar Index leaps to weekly tops beyond 91.00. The buying pressure around the greenback accelerates further and lifts the US Dollar Index (DXY) to new highs above the 91.00 barrier.
The Nasdaq has closed lower while the S&P 500 was little changed on Wednesday as investors rotated out of technology shares and concerns about inflation added some pressure on stocks.
The Dow Jones Industrial Average rose, however, aided in part by gains in shares of Verizon Communications Inc and Chevron Corp, which gained after Warren Buffett's Berkshire Hathaway Inc disclosed major investments in the companies on Tuesday. The Dow Jones Industrial Average rose 91.65 points, or 0.29 per cent, to 31,614.4, the S&P 500 lost 1.16 points, or 0.03 per cent, to 3,931.43 and the Nasdaq Composite dropped 82.00 points, or 0.58 per cent, to 13,965.50.
US Retail Sales m/m came in stronger than expected at 5.3% vs 1.1% expected.
EURUSD slumped on Wednesday and has dropped below 1.2050, weighed by strong US data. EUR/USD trades with losses of about 0.5%. A dovish FOMC minutes release did not impact price action at all.
GBPUSD is on the back foot, trading below 1.39 as the US dollar rises alongside yields and the "reflation trade." US retail sales exceeded all estimates with a leap of 5.3%, boosting yields and the dollar. The Fed's minutes are next.
After closing the previous four trading days in the positive territory, the USDJPY pair extended its rally and touched its best level since September at 106.22 on Wednesday. However, the pair lost its traction in the late American session and was last seen losing 0.25% on the day at 105.78.
AUDUSD trims the previous day’s losses while keeping bounce off 0.7722. Aussie data, RBA’s Kent couldn’t save the bulls as US Treasury yields refreshed multi-month high before easing, favoring greenback earlier. China’s return after the New Year holidays also becomes the key.
USDCAD recovers further from multi-week lows, moves back above 1.2700 mark. USDCAD added to the overnight strong gains and scaled higher for the second straight day. The greenback remained well supported by some follow-through uptick in the US bond yields. Bullish crude oil prices might underpin the loonie and cap any meaningful upside for the pair.
Gold fell to the lowest in more than two months as a stronger dollar and better-than-expected U.S. economic data diminished the appeal of the metal as a haven.
A big freeze in Texas is contributing to a Global oil market crisis. Brent crude surged to within 25 cents of $65 a barrel on Wednesday, a level not seen since last January.
Bitcoin has surged to yet another record high, a day after the virtual currency vaulted to the $US50,000 hurdle, even as analysts warned against the sustainability of such prices amid elevated volatility. Bitcoin was last up 6.3 per cent at $US52,233.
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