Dollar strengthens across the board on Friday

Traders bought the greenback on Friday, and it was up against all major currencies, excluding the yen.

The EURUSD pair was seen down 0.3% at 1.2120, cable fell to 1.3650, while the USDJPY pair was marginally lower near 103.70.

Commodity currencies were also weaker today as all the main commodities were lower. Correlations seem to be breaking up – US yields fell notably today, but the greenback was higher, and commodities were under pressure. 

Earlier in the day, the new US President Joe Biden proposed a 1.9 trillion USD stimulus plan to boost the world’s largest economy, which has been hit hard by the Covid-19 pandemic. Investors think that inflation will rocket higher in the US, evident by the soaring food prices as all of the basic agriculture commodities are up 50-80% over the last weeks. 

Traders will focus on today on US retail sales numbers, which are due later in the day. Markets forecast a notable bounce from the previous levels, which might strengthen the US dollar further. 

Moreover, industrial production, capacity utilization, and PPI figures will be released.

Source: https://www.axiory.com/market-news/dollar-strengthens-across-the-board-on-friday