What you need to know on Thursday, February 18:
Demand for the dollar persisted, supported by rising US Treasury yields as long-term government bond yields hit new one-year highs. Upbeat US retail sales, likely as a result of stimulus controls, further supported the US currency.
The FOMC released the Minutes from its last meeting, which showed that policymakers believe it is premature to talk about reducing QE, as asset purchases would remain at current levels until the first quarter of 2022. Lawmakers also noted that the pace of economic recovery has moderated in recent months.
European indices closed lower, but the Americans managed to cut most of their initial losses after the release of the Minutes of the FOMC meeting.
The shared currency was the worst performer, approaching 1.2000 against its US rival. GBP / USD lost the 1.3900 level, but the decline is still limited by upbeat UK inflation figures.
Gold prices plummeted. The shiny metal was trading as low as 1,769.40 a troy ounce, a new 2021 low, ending the day around 1,774. Crude prices started the day lower, but recovered before the close, amid production disruptions in the United States due to low temperatures in Texas.
European restrictive measures are likely to continue due to the ongoing pandemic. Vaccine roll-out is proceeding slowly but progressing, although the number of new cases is far from optimal. In the UK, Prime Minister Boris Johnson said restrictive measures will be lifted cautiously, adding that he hopes the process will be irreversible.
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