TOKYO (Reuters) – The dollar held ground on Thursday after regaining its first gain in two weeks as upbeat data added to what the U.S. expects to recover from the pandemic faster than most. his peers.
Bitcoin trading was just shy of the new high of $ 52,640 reached overnight, with the rise of around 58% this month prompting some analysts to warn that the rally could being unstable.
U.S. retail sales stimulus studies helped to reverse sharply in January, while industry output data and producer prices also provided a strong upside surprise.
Investors are expecting another boost from the $ 1.9 trillion COVID relief package proposed by Joe Biden, with the president meeting top labor leaders Wednesday to drain support for the plan.
Meanwhile, minutes from last month’s Federal Reserve policy meeting confirmed the central bank’s willingness to let the economy run hot while maintaining an ultra-responsive monetary position.
“Biden’s stimulus plans, a sharp decline in new diseases and the rapid rollout of vaccines leave the U.S. in a good position to recover faster than most,” Westpac strategists wrote in a messenger note.
“That would generate occasional hits of USD upside down.”
However, like many analysts, the Westpac team expects the dollar to decline this year, measured by the Fed’s non-stop currency printing.
The dollar index remained unchanged at 90.89 early Thursday in Asia after strengthening 0.2% overnight and 0.4% on Tuesday.
The benchmark has gained around 1% this year, rebounding from an almost 7% slippage in 2020 that extended to a 2-1 / 2-year low of 89.206 in early January.
Westpac is proposing new dollar shorts on rallies towards 91.0.
The euro remained unchanged at $ 1.2046 after slipping 0.5% overnight, the highest in two weeks.
The dollar was near flat at 105.875 yen, after pulling back on Wednesday after reaching a five-month high of 106.225.
Land trade of Chinese yuan begins Thursday after the Lunar New Year holidays.
Reciting with Kevin Buckland; Edited by Sam Holmes