fxstreet.com 05 Feb, 2021 09:00 am

Exceptionalism? US yield curve steepens and the USD rallies

Exceptionalism?  US yield curve steepens and the USD rallies
The focus today is on the NFP print and the FX markets as the G10 currencies sit at key levels. Investors will be wary of fading the USD rally here as

BOE encouraged banks in the UK to prepare for negative rates although it showed no signs of planning to implement them soon.The market took this as hawkish overall as some had expected negative rates to come soon.37 level, despite risks of negative rates.Stocks in London remained subdued as Sterling strengthens, after comments from the Bank of England that it will resort to negative rates only if the economic situation declines.

The focus today is on the NFP print and the FX markets as the G10 currencies sit at key levels.This suggests a strong print from NFP today and it likely helping the USD rally.

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