On Friday, February 16, the US dollar decreased vs the majors and touched the bottom over 3 years due to fears about the current US economic policy. The positive influence of the recent reports was leveled down by concerns about increasing the budget deficit.
The negative USD dynamics is related to an anticipated increase in US budget deficit to some $1 trillion in 2019 on expanded infrastructure project costs and reduced corporate taxes. Earlier, the US dollar posted some gains on the back of the January CPI report showing a 0.5% rise. These results led to higher yields of US 10Y bonds.
According to another report, US PPI expectedly went up by 0.4% in January.
Seeing higher inflation rate, the Federal Reserve can revise interest rate earlier than expected.
The US Dollar index (USD capacity vs six main currencies) fell down to 88.27 this morning. As a result, it was recorded the minimal level since December 2014.
The euro and sterling to US dollar rose to 1.2537 and 1.4128 respectively. The US dollar to yen exchange rate touched the bottom since November 2016 at 105.79.
AUD and NZD improved against the USD to 0.7972 and 0.7424 respectively.