FOREX-Dollar buoyed by U.S. recovery hopes, bitcoin near record $52,640

Published 18/02/2021, 01:48
© Reuters.
USD/CNY
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DX
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By Kevin Buckland
TOKYO, Feb 18 (Reuters) - The dollar held ground on Thursday
after its first back-to-back gains in two weeks as upbeat data
bolstered expectations for the U.S. to recover from the pandemic
faster than most of its peers.
Bitcoin BTC=BTSP traded just shy of the new record high of
$52,640 reached overnight, with its roughly 58% surge this month
prompting some analysts to warn that the rally might be
unsustainable. Stimulus cheques helped U.S. retail sales to rebound sharply
in January, while industrial output and producer prices data
also provided robust upside surprises. Investors expect a further boost from Joe Biden's proposed
$1.9 trillion COVID-relief package, with the president meeting
top labour leaders on Wednesday to drum up support for the plan.
Meanwhile, minutes from the Federal Reserve's policy meeting
last month reinforced the central bank's willingness to let the
economy run hot while keeping monetary settings
ultra-accommodative. "Biden's stimulus plans, a steep decline in new infections
and rapid vaccine rollout leave the U.S. well positioned to
recover sooner than most," Westpac strategists wrote in a client
note.
"That will generate periodic bouts of USD upside."
However, like many analysts, Westpac's team expects the
dollar to decline this year, weighed by the Fed's relentless
money printing.
The dollar index =USD was little changed at 90.89 early
Thursday in Asia after strengthening 0.2% overnight and 0.4% on
Tuesday.
The gauge has gained about 1% this year, rebounding from an
almost 7% slide in 2020 that extended to a 2-1/2-year low of
89.206 in early January.
Westpac recommends fresh dollar index shorts on rallies
toward 91.0.
The euro EUR=EBS was little changed at $1.2046 after
sliding 0.5% overnight, the most in two weeks.
The dollar was almost flat at 105.875 yen JPY=EBS ,
following a pullback Wednesday after reaching a five-month high
of 106.225.
Onshore trading of the Chinese yuan CNY= resumes Thursday
following Lunar New Year holidays.


========================================================
Currency bid prices at 0016 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2044 $1.2040 +0.04% -1.42% +1.2046 +1.2042
Dollar/Yen JPY=D3 105.8520 105.8600 +0.00% +2.49% +105.9000 +0.0000
Euro/Yen EURJPY= 127.49 127.46 +0.02% +0.45% +127.5700 +127.4800
Dollar/Swiss CHF=EBS 0.8986 0.8988 -0.01% +1.58% +0.8988 +0.8985
Sterling/Dollar GBP=D3 1.3864 1.3865 +0.01% +1.50% +1.3867 +1.3861
Dollar/Canadian CAD=D3 1.2693 1.2698 -0.02% -0.31% +1.2704 +1.2695
Aussie/Dollar AUD=D3 0.7758 0.7751 +0.11% +0.87% +0.7760 +0.7750
NZ NZD=D3 0.7191 0.7189 +0.04% +0.15% +0.7194 +0.7187
Dollar/Dollar


All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX

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World FX rates https://tmsnrt.rs/2RBWI5E
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