Dollar Under Pressure, Risk-On Rebounds
The US dollar started the week slowly. The Dollar Index (DXY) hovered around 97.5 and fell by around -0.27% today in the European session on Monday (February 9th), as markets adopted a wait-and-see approach ahead of the release of key US data that will determine the Fed's direction.
Pressure on the dollar was also aided by the returning risk-on mood. When risk appetite improves, demand for the dollar as a defensive asset typically declines. And this week, the main focus is clear: employment data (Wednesday) and inflation/CPI (Friday)—two figures that could suddenly change interest rate expectations.
In the yen market, movement was lively. USD/JPY fell to around 156.8 (around -0.25%), after the yen weakened and then rebounded in the European session. The Japanese election and potential fiscal stimulus prompted the market to quickly reposition itself—the result: the yen became volatile within the day.
Meanwhile, in Europe, major currencies took center stage as the dollar weakened. EUR/USD is around 1.1854 (up +0.33%), while GBP/USD is at 1.3602 (down slightly -0.05%).
Among commodity currencies, AUD/USD is the most prominent: rising to around 0.7036 (up +1.23%). NZD/USD is relatively calm at 0.6021 (down slightly -0.05%). In Asia, the yuan is also stable, with USD/CNY around 6.9235 (down -0.11%), indicating that dollar pressure is being felt quite broadly today.
Source: Newsmaker.id
