U.S. Dollar, Yen Advance As Risk Sentiment Deteriorates
The U.S. dollar and the Japanese yen gained ground against their
major counterparts in the Asian session on Monday, as persistent
concerns about rising coronavirus cases in the region and lagging
vaccination efforts dented the risk sentiment.
Over the weekend, China's top disease control official has said
that the effectiveness of Chinese coronavirus vaccines was low and
authorities are considering options to bolster protection.
Oil prices dropped as worries about the outlook for energy
demand amid a continued surge in coronavirus cases weighed on the
Friday's stronger-than-expected U.S. producer price inflation
data supported expectations for higher inflation in the coming
In an interview with "60 Minutes" on CBS, Federal Reserve Chair
Jerome Powell said that the economy "has brightened substantially"
due to faster vaccinations and intensive policy support.
But Powell cautioned that there were risks if a quick reopening
leads to a continued rise in coronavirus cases.
Investors will be watching U.S. inflation and retail sales data
due this week for more indications about a rebound in the
The greenback spiked higher to 1.1881 against the euro and
0.9267 against the franc, after dropping to 1.1904 and 0.9243,
respectively in early deals. The greenback is poised to find
resistance around 1.16 against the euro and 0.94 against the
The greenback approached more than a 2-month high of 1.3669
against the pound, up from Friday's close of 1.3702. The currency
is likely to find resistance around the 1.35 level.
The greenback edged up to 0.7595 against the aussie, 0.7014
against the kiwi and 1.2568 against the loonie, following its prior
lows of 0.7628, 0.7628 and 1.2523, respectively. The next possible
resistance for the greenback is seen around 0.74 against the
aussie, 0.68 against the kiwi and 1.29 against the loonie.
The yen rose to 76.79 against the kiwi, 83.15 against the aussie
and 87.17 against the loonie, recovering from its early lows of
77.27 and 83.69 and a 6-day low low of 87.59, respectively. The yen
is seen finding resistance around 74.00 against the kiwi, 80.00
against the aussie and 85.00 against the loonie.
The yen rebounded from an early low of 109.77 against the
greenback and a 5-day low of 130.61 against the euro, gaining to
109.47 and 130.14, respectively. Next key resistance for the yen is
possibly seen around 108.00 against the greenback and 126.00
against the euro.
The yen appreciated to 118.22 against the franc and 149.76
against the pound, off its early lows of 118.62 and 150.48,
respectively. On the upside, 115.00 and 148.00 are likely seen as
its next resistance levels against the franc and the pound,
Looking ahead, Eurozone retail sales for February are due in the