The U.S. dollar’s further slide in the morning on February 19 after losses the day before was most likely a reaction to rather bleak statistics on employment in the United States, argues Ricardo Evangelista, senior analyst at London-based foreign exchange broker ActivTrades.
According to Evangelista, the greenback’s February 18 dip was attributable to a Federal Reserve statement that made clear that the U.S. central bank would stick to its policy of low interest rates and large-scale bond purchases.
The latest U.S. labour market data suggest that the recovery of the United States’ COVID-drubbed economy is still some way down the line, Evangelista believes.
They also provide little support for expectations that a possible fiscal stimulus would catalyse inflation and mark a sharp change in the Fed’s monetary policy, he thinks.
The dollar was on a rise during the first part of this week before losing ground to other major currencies on February 18.
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