The US Dollar has somewhat strengthened its positions over the period of February 11-15 as the single European currency ended up under serious pressure. The Dollar index USDX, in the proportion of which the EURUSD pair makes up for 50.14%, strengthened its positions and closer to the reporting period’s end added 0.2%. Nonetheless, in regard to the two other main currencies, the Dollar was acting in a rather reserved way and was even somewhat weakening, which was facilitated by the preserved appetite for the risky assets.
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Over the period of February 11-15 no major macroeconomic data, capable of directly impacting the US Dollar, will be released. Nonetheless, the retail sales data, scheduled for release on Wednesday, February 13 at 13:30 GMT, can provoke a massive reaction on the stock exchanges and can thus impact the Dollar’s dynamics. In general, the investors on the global financial markets are digesting the previous weeks’ movements and the risky assets are correlating which favorably influences the Dollar’s positions. Nonetheless, the fundamental picture remains unfavorable for it.
The US Dollar strengthened its positions over the period of February 4-8 as the risky assets remained under reasonable pressure for most of the week, following a considerable strengthening of the previous ones. In particular, the US stock indices have twice made serious attempts to move from their multi-year maximums, losing over 1 percent during the trading sessions. The US 10-year bond profitability has decreased by 0.07 percent point to 1.95%. The macroeconomic data from the US continued to remain of a positive nature yet the Dollar was generally moving in dependence of the risky assets’ behavior. A considerable impulse to its strengthening was attributed by the ECB Head Mario Draghi’s speech which conveyed a lot less optimism on the Eurozone’s economy’s prospects. Closer to the end of the week, the Dollar index USDX gained 1.2%.
The main event of the week for the single currency traders will be the outcome of the ECB Governing Council’s next meeting and the press-conference of its Head Mario Draghi. No radical decisions are expected from the European regulator, since the situation in the region’s economy is gradually improving. Based on the situation, it will be most logical for him to observe everything from the side. The Euro with this background has all chances to continue the upward movement toward the 1.38 mark.
The past week turned out rich in publications of important economic data yet despite this many traders were in anticipation of the Federal Reserve’s meeting outcome. As it became known, the USFR will continue its monthly purchases of the mortgage securities for the amount of 40 billion Dollars as well as the treasury bonds for the amount of 45 billion Dollars. The USFR has also announced it will continue purchasing the securities until a major improvement on the labor market is noted. Besides that, the USFR will preserve the extremely low interest rates until the inflation falls below 2.5%. At the same time, the USFR pointed out that the economy will keep growing at a reasonable pace at the implementation of the quantitative easing policy measures and the unemployment level will gradually decrease at the easing policy.