Dollar to consolidate before resuming the broader downtrend
A sideways move of 90-91.50 is possible in the near term
The dollar remained weak all through last week. The US Dollar Index failed to sustain above 91 and fell to a low of 90.25. The euro rising past the key near-term resistance level of 1.21 dragged the Dollar Index lower last week.
On the equities front, the Dow Jones Industrial Average continues to hover at higher levels on the back of the US stimulus support. However, the index seems to lack momentum to further move up further from current levels in the absence any fresh triggers. Overall, a sideways consolidation looks like a possibility before the broader trends resumes in all the asset classes.
5 Min Read
Feb 11 (Reuters) - A slower-than-expected vaccine rollout and the rise of coronavirus variants may make attaining herd immunity against COVID-19 difficult, but that should not stop the economy from rebounding, according to a U.S. central banker Thursday.
“I don’t think the economy requires herd immunity,” Richmond Federal Reserve Bank President Thomas Barkin told Reuters Thursday. “Consumers who get vaccines, who have money in their pockets.are going to be free to spend,” he said.
Analysts have long predicted economic activity will pick up as more people are vaccinated, but hopes for a quick path to a fully immunized populace have faded amid vaccine shortages and other roadblocks. President Joe Biden said earlier this week it will be “challenging” for the economy to reach herd immunity by summer’s end. Barkin’s remarks signal a growing understanding that an economic rebound and an ongoing pandemic are not mutually exclusive realities.
A slower-than-expected vaccine rollout and the rise of coronavirus variants may make attaining herd immunity against COVID-19 difficult, but that should not stop the economy from rebounding, according to a U.S. central banker Thursday.
The U.S. Federal Reserve on Friday unveiled the hypothetical recession it plans to test large banks against in its 2021 stress tests, which includes "substantial stress" in the commercial real estate and corporate debt markets.
U.S. Treasury Secretary Janet Yellen on Friday urged G7 finance leaders to "go big" with additional fiscal stimulus to recover from the coronavirus pandemic and told them that the Biden administration was committed to multilateral engagement and fighting climate change.