Forex Today: Dollar Hovers Near Six-Week Low

Sari Holtz

Powell to address House Financial Services Committee today.

  • Surging prices for commodities like oil, lumber, and copper have pushed the Australian dollar and the New Zealand dollar higher, while keeping the U.S. dollar hovering near six-week lows.
  • Rising bond yields have posed a problem for Federal Reserve Chairman Jerome Powell; on one hand, higher yields could be a sign of the reflation that Powell has been hoping for. On the other hand, if Powell remains complacent about the country's economic recovery, the markets may respond negatively.
  • Higher bond yields also caused a stir for stocks yesterday, as they caused a massive selloff in the tech sector, causing the NASDAQ to end down 2.46 percent, and the S&P 500 to close down 0.77 percent. Higher 'risk-free' yields have been known to cause traders to shed shares in equities. TSLA stock eased 8.55 percent on Monday, while MSFT and AAPL both shed more than 2 percent.
  • The United States crossed a grim threshold on Monday, logging more than 500,000 COVID-19 deaths. President Biden held a moment of silence for all the lives lost.
  • The number of new COVID-19 cases in the world has fallen nearly 50 percent from January highs, with some 2.4 million cases diagnosed last week, compared to over 5 million cases on the week of January 4, 2021.
  • Data released by the World Health Organization on Monday indicated a decline in new coronavirus cases for the sixth consecutive week. New infections were down 11.7 percent last week compared to the prior week. The decline in new cases was especially prominent in the Americas, Europe, and Africa.
Sari Holtz

Sari Holtz began working at DailyForex in 2011 when she was hired to provide daily news analysis and to manage the daily content. Since then, she has continued to provide regular news items that focus on how political events impact the global economy. She also works directly with dozens of Forex brokers worldwide to ensure that they get their messages across and that traders can find the best broker for their individual needs.

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