Forex Today – Asian Session: The Return of the King Dollar

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What you need to know on Wednesday, February 3:

The US dollar strengthened further, rising to new 2021 highs against the EUR, AUD and CHF. However, he was appreciated against all his main rivals.

The catalyst was the progress of the US stimulus talks. The talks between US President Joe Biden and Republican senators were productive, according to Senator Susan Collins. However, there is a big difference between Biden’s $ 1.9 trillion package and the Republicans’ counter offer of approximately $ 600 billion. Additionally, Democratic congressional leaders pushed for a budget resolution that allowed them to pass Biden’s coronavirus aid bill without the support of Republicans.

GBP / USD fell to the 1.3610 level, rebounding afterwards. It is the second time this year that the pair has rebounded from the level. The third time could be a charm.

The loonie was the best performer against the dollar as crude oil prices soared to their highest level in a year amid signs of tight supply. The WTI closed at $ 54.70 a barrel.

Gold prices, on the other hand, slumped, partly weighed by renewed demand for the dollar and partly undermined by falling silver prices as the retail investor frenzy continues to wane.

Stocks soared on optimism, and global indices closed higher.

Immunization against the coronavirus continues at an erratic pace. Delivery delays persist in Europe, while Israel and the United Kingdom accelerate the rate of vaccination. Restrictive measures have been extended in Scotland and Japan. The global number of new cases fell from record lows and stands at October 2020 levels, although the death toll remains high. Hopes remain for an economic recovery in the second half of the year.

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