Dollar’s Dominance Continues; Yen Tumbles Further
FEBRUARY 20, 2020
The U.S. dollar continued its strong run again overnight, with the Bloomberg dollar index climbing for a third straight day and reaching its strongest level sine October.
Other safe-havens such as gold and the Swiss franc also rose, but the Japanese yen has been moving in the opposite direction.
The Australian dollar slid again and fell to its weakest level in 11 years versus the greenback, mostly on concerns of the slowdown in China, Australia’s largest trading partner.
The Euro remained near 3-year lows even after producer prices in Germany ticked higher.
This morning’s economic docket will do little to get in the way of the dollar’s dominance. The Philly Fed registered at 36.7 versus an expectation of 11.0 and better than January’s print of 17.0.
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The Japanese yen has been unable to stop the bleeding, losing another half a percent versus the U.S. dollar overnight. The beleaguered currency has weakened over 2.0% over the past two days, the largest two-day drop since September 2017.
For the second straight day, the British pound fell against the U.S. dollar despite the release of strong economic data. U.K. retail sales registered better than expected, but the sterling still dropped for a fourth straight day. Yesterday, the sterling also tumbled even after a report showed inflation accelerated.