Dollar backs off 1-week high ahead of US unemployment claims

The US dollar fell against a basket of major currencies on Thursday, and gave up its 1-week high on profit-taking, but today's loss is ebbed by the high yield of the US 10-year Treasury bonds and ahead of key US data later today.

The dollar index fell 0.25% to 90.67 points, after opening at 90.90 points, and hit an intraday high at 90.98 points.

The index gained 0.5% yesterday, its second daily gain, on investors' risk aversion.

The market sentiment improved on Thursday thanks to growing signs on a fast global economic recovery from the Covid-19 pandemic impact, especially after strong data on the US retail sales during January, and key inflation data in the UK and Canada.

This came thanks to massive stimulus measures in most parts of the world, especially in the US, and vaccination campaigns in many countries, especially in the UK after vaccinating 15 million of British citizens.

The 10-year US Treasury bonds yield rose 1.25% on Thursday to 1.295%, to resume gains after taking a pause yesterday due to profit-taking from an 12-month high of 1.331%.

The Federal Reserve's minutes of its January 26-27 meeting, revealed that the Fed will continue its dovish monetary policy until the economy shows strong signs on returning to its growth path and reach full recovery from the Covid-19 pandemic.

At 13:30 GMT, the US unemployment claims for the week ending February 13 are expected to reach 0.775 million from 0.793 million the previous week.

The Philly Fed manufacturing index is expected to reach 20.3 points in February, from 26.5 points in January.