The US Dollar lost positive momentum during choppy Asian trade after the chief of the Federal Reserve said that the US central bank would maintain low rates for the foreseeable future. Jerome Powell also dismissed any expectations that the Fed might soon reduce asset purchases. Analysts acknowledge that the Fed's bond purchasing program has been weighing on the currency, even as it has helped to prop up the US economy. Expectations that the Biden administration will be providing a major stimulus boost was confirmed by the President-elect on Thursday.
In Tokyo trading as of 10:22 am, the USD/JPY was trading at 103.7560 Yen, down 0.06%; the pair has ranged from a low of 103.695 Yen, to a high of 103.860 Yen. The EUR/USD was lower at $1.2146, down 0.0494%, off the session peak of $1.21631. The GBP/USD was lower at $1.3678, a loss of 0.0548%; the pair has ranged from $1.36741 to $1.37029.
UK Data Expected to be Dismal
Later today, markets will be focusing on data from the UK. Specifically, the Office of National Statistics will be releasing key data on manufacturing and industrial production. A recent poll of economists is predicting that manufacturing production in November will have fallen to 0.9% from 1.7% on a month-over-month basis, while industrial production will show a decline to 0.5% from 1.3% for the same period. GDP data is also due out, with analysts expecting to see a significant decline to -5.7% from 0.4% on a month-over-month basis. The impact of the Coronavirus on the British economy is expected to continue to weigh heavily on the currency.