Gold keeps lower by 0.3% but off the lows earlier in the day
That might just be the story for gold as it fails to catch a respite even as the dollar has slumped by quite a bit in European morning trade.

AUD/USD climbs to a high of 0.7837, its highest level since March 2018
The dollar is slumping further across the board and that is helping to lift AUD/USD to its highest levels in almost three years as the pair looks to break resistance at around 0.7800-20 and keep a break towards 0.8000 potentially next.

Latest data released by Markit/CIPS – 19 February 2021
That is surely a welcome development as it keeps the already more optimistic focal points of the market i.e. vaccine rollout and BOE not rushing into negative rates, in an even better spot as we navigate through Q1 this year. Markit notes that:

Further remarks by Saunders
– Scope to cut interest rates is limited now
– If we wanted to lower yield curve, lower bank rate would be the best tool
– BOE has a range of policy tools
The pushback on negative rates by the BOE has been clear since the last meeting. As things stand, it is more of

Buyers show their mettle on a bounce from the 200-hour moving average
caught in a near-term battle
The high for the week rests at 1.3952 and if that gives way, there is little standing in the way of a further shove towards 1.4000 next.

Comments by BOE policymaker, Michael Saunders
The by ONS reveals that roughly 20% of workers are still on furlough, which is the highest levels since June to July last year.

Risk keeps in a more tepid spot so far today
The market is seeing a bit of a mixed mood with Treasuries a little lower alongside stocks, while the dollar is also slightly weaker across the board for the time being.

EUR/USD is up 0.3% just above 1.2070 on the day
The turnaround today comes as the dollar is seeing slipping across the board but so far the gains are roughly only half of the push lower seen yesterday.

Latest data from the Mortgage Bankers Association for the week ending 12 February 2021
– -4.1%
The key drop comes from yet another dip in purchasing activity with refinancing activity also seen declining once again in the past week. That points to some moderation in housing market activity though it will be interesting to see how

Dollar holds firmer even as the reflation trade pauses for breath
The dollar firmed yesterday on the back of higher yields and is so far keeping that momentum going in trading today, gaining modest ground across the board.