Markets resume advancing after Powell’s dovish comments - 11.2.2021

The Dollar weakening continues currently ahead of the US Labor Department report at 14:30 CET expected to show 755 thousand Americans sought unemployment benefits over the last week, down from 779 thousand the previous week. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slipped 0.01% Wednesday as Bureau of Labor Statistics reported core US inflation eased to 1.4% in January from 1.6% in December.

GBP/USD slowed its rising yesterday while EUR/USD reversed its climbing after French statistics bureau INSEE reported French industrial output contraction accelerated in December. Both Euro and Pound are higher against the Dollar currently. AUD/USD reversed its climbing Wednesday while USD/JPY reversed its sliding with both yen and Australian dollar higher against the Greenback currently.

The US stock futures are up currently ahead of Monetary Policy Report the Federal Reserve is due to submit to Senate today. Stocks ended mixed Wednesday as Fed chair Powell called for a “society-wide commitment” to reducing unemployment which he estimated was nearer 10% than the reported 6.3% once pandemic effects were stripped out. The three main US stock indexes booked returns ranging from -0.03% to +0.2% against the background of surprisingly soft reading on core US inflation and a dovish Federal Reserve outlook.

European stock indexes are higher currently after a bearish session Wednesday amid reports German Chancellor Angela Merkel was set to announce that Germany will extend its coronavirus lockdown until March 7. Asian stock indexes are mixed today with Hong Kong’s Hang Seng Index leading gains in thin trading with markets in China, Japan, South Korea and Taiwan all on holiday.