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Session Recap: Depressive USD; unbeatable Sterling

FXStreet (San Francisco) - The Sterling rallied for seventh day in a row amid optimistic expectations in UK and the notion the BoE would be the first central bank that will close the accommodative cycle. GBP/USD reached 1.6755 as highest since November 2009.

On the other hand, USD remains under pressure as market is assuming the Fed won't accelerate the tapering process in the short term. The US dollar lost ground against its major rivals including the Abenomic Yen.


The EUR/USD advanced for second day and tested above 1.3700 level. However the pair was unable to hold prices and it closed at 1.3690. However, the "dollar seems condemned to lose ground as EUR bulls are more determinate now," as the FXStreet forecast poll concluded following the latest poll update.

The yen extended losses for third day against the dollar and after losing 115 from 102.70 (February 11 high) the pair tested 101.60 today's low. The USD/JPY closed the week at 101.80.

Main headlines in the American session

Canada: Manufacturing Shipments (Dec) fell 0.9%

Canadian January existing home sales -3.3% vs -1.8% prior

US: Import Price Index (Jan) rose 0.1% MoM

US: Industrial Production slides 0.3% in January

US: Reuters/Michigan Consumer Sentiment Index unchanged in February

Gold rally continues on US growth concerns

Wall Street extends the come-back and closes 2nd winning week

Flash: EUR/USD for the 1.40 handle perhaps? - ANZ

Tim Riddell, Head of Global Markets Research, Asia at ANZ rounded up the week with the EUR/USD threatening the possibility of risk to the upside and onto the 1.40 handle.
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Flash: EUR/USD closing around 1.37 - Scotiabank

Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted the activity around the EUR/USD as it is closing the week around the 1.37 handle.
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