Asian session review: the US dollar rose moderately against major currencies

During today's Asian trading, the dollar recovered some of the losses, but may still record the highest weekly decline since the beginning of the year after stronger-than-expected statistics in Europe, an unexpected increase in applications for unemployment benefits in the United States and dovish comments from the Fed.

The ICE index, which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), rose 0.25%.

"In short, the energy of the dollar's rebound in the first quarter has dried up, just as it did in the bond sell - off," said Keith Jukes of Societe Generale.

Federal Reserve Chairman Jerome Powell said that the jump in spending on the back of the opening of the US economy, together with supply-side bottlenecks, is likely to increase prices this year, but it will not result in a steady increase year after year, which the Fed considers inflation.

The number of applications for unemployment benefits in the United States over the past week rose to 744,000, while analysts, based on preliminary data, predicted a figure of 680,000. 

The euro fell against the US dollar, which was due to the publication of data on Germany. According to provisional data of the Federal Statistical Office (Destatis), in February 2021, production in industry was down by 1.6% on the previous month on a price, seasonally and calendar adjusted basis. Economists had expected a 1.5% increase. Compared with February 2020, which was the month before restrictions were imposed due to the corona pandemic in Germany, real production decreased by a calendar adjusted 6.4% in February 2021. In January 2021, the corrected figure on the production in industry showed a decrease of 2.0% (provisional: -2.5%) from December 2020.