🇺🇸 USD – BULLISH
1️⃣ A general deterioration in investors’ risk appetite and as Treasury yields continue to soar amid expectations of high inflation.
🇬🇧 GBP – BULLISH
1️⃣ Prime Minister Boris Johnson is set to announce more details of the plans to ease restrictions on the UK economy, which are expected to start being lifted March 8th.
2️⃣ Hopes of a quicker economic recovery helped by the UK’s rapid pace of vaccinations, as well as lessening expectations of negative interest rates and a post-Brexit trade deal with the EU.
🇪🇺 EUR – BEARISH
1️⃣ The ECB policy meeting minutes showed last week officials agreed that headline inflation was at a very low level and that it continued to be distant from the central bank’s target.
2️⃣ Concerns mounted over the slowing pace of COVID-19 vaccination in the EU and its impact on Europe’s economic recovery.
🇳🇿 NZD – BULLISH
1️⃣ Riskier currencies were boosted amid prospects of a robust global economic recovery.
2️⃣ New Zealand’s foreign currency rating to AA+ from AA and its local currency rating to AAA from AA+, citing faster-than-expected economic recovery.
3️⃣ Ten-year yields in both Australia and New Zealand surged more than 10 basis points on Monday.
🇨🇦 CAD – BULLISH
1️⃣ Global economic recovery and rise in oil prices support the CAD.
🇦🇺 AUD – BULLISH
1️⃣ Investors cheering Australia’s mass COVID-19 vaccine programme launch as the country looked set to report no local cases for the third straight day.
2️⃣ Ten-year yields in both Australia and New Zealand surged more than 10 basis points on Monday.
3️⃣ Australia’s seasonally adjusted unemployment rate fell to 6.4% in January, the lowest jobless rate since April as the economy continued its rebound from the coronavirus pandemic.
🇯🇵 JPY – BEARISH
1️⃣ The Yen remains particularly sensitive to the US bond market due to local yields remaining anchored by the Bank of Japan, while US treasury 10-year rate rose above yearly highs to 1.38%.
🇨🇭 CHF – BEARISH
1️⃣ The Swiss Franc has pressured by the rising of US Treasury yields.
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