February 11, 2021
Daily FX Market Roundup 02.11.2021
By Kathy Lien, Managing Director of FX Strategy for BK Asset Management
• #USD Rebounds as Stocks Wobble
• #AUD Soars on Higher Inflation Expectations
• #CAD Unchanged as Oil Snaps 8 Day Rally
• GBP Retreats Ahead of Q4 GDP
• Happy Lunar New Year!
At the beginning of the year, the U.S. dollar hit a bottom and it hasn’t revisited those levels since January. However sentiment is shifting with the dollar pulling back this week. Much of that has to do with the persistent strength of U.S. equities but as stocks consolidate and the gains moderate, investors are wondering if the bubble is beginning to deflate. This is important for currency traders because a large part of the dollar’s decline in 2020 was tied to the strength of equities. If stocks are at the cusp of a deeper correction, the dollar would be prime for a rally.