Both the Euro and Sterling forex market prices have been recovering today against a US Dollar that had been showing consistent strength amid an unpredictable market earlier in the week. This rebound comes as the Greenback takes a breather and the markets move back into positive numbers following a difficult start to the trading week. Positive retail data from the UK has further helped strengthen the Pound as the battle over vaccines between the EU and UK continues. Meanwhile, consumer inflation data is due in the US later today.
Dollar Takes a Step Back Providing Currency Relief
US Dollar forex trading has been mounting a recovery of its own lately. It has been persistently weak throughout the COVID-19 recovery. This has as much to do with the general risk-off mood that accompanied markets in recent months though there were times when the Dollar position as a global safe-haven currency appeared under threat. This has not been the case in recent days. Market sell-offs have brought the Greenback back into focus and strength that in turn has balanced out the GBP in particular.
It took a break yesterday though thanks to a number of positive factors. First off, US jobless numbers came in at a new pandemic-era low. Then there is the ramp-up in US vaccinations for COVID with President Biden already exceeding his initial 100-day, 100 million target. This has now been revised to double the number with a more positive outlook moving forward.
UK Retail Data Boosts Pound
Alongside a slightly weakening Dollar, there is also a case for strength from the Pound in particular. Despite the challenges they still face with an ongoing uncertainty hanging over the AstraZeneca vaccine and particularly exports of this from EU neighbors, the currency has managed to summon some fresh strength moving back in the direction toward $1.38 with forex brokers.
The main driver here besides the already mentioned change in US risk attitude has been a boost to UK retail sales. These came in with a better than expected increase of 2.1% for February as the benefits from a very effective vaccination campaign are starting to show on the street. The key issue moving forward that tempers this positivity with caution are the US sanctions on China over human rights concerns. This has led to a retaliatory response from Beijing that could certainly have a knock-on impact for British retailers.
Markets Looking to End Week Strongly
Futures markets on Wall Street continue in a positive vein from where the market finished yesterday’s session. A swinging Dow Jones finished in the green and all the major indices on the street look set to open in positive territory.
This comes on the back of a difficult week that has seen a move toward cyclical stocks and a drop back from the tech-heavy NASDAQ in particular. Inflation data due for release later today will also turn attention back to that which has been a hot topic despite numerous assurances from the Fed that they have all the required tools to deal with any inflationary pressures.