The US dollar fell on Thursday, to pull back from its 4-month peak on profit-taking, which comes ahead of the reasele of key inflation data in the US for January.
The dollar index fell 0.2% to 98.85 points, after opening at 98.99, and hitting a day high and highest since Oct. 10 at 99.06 points.
The greenback gained 0.3% on yesterday, to post its seventh daily gain in 8 days, and the largest in a week.
These gains are due to increased demand for the US currency after the release of successive strong data that raised confidence in the US economic growth path in the first quarter of 2020.
Fed Chair Jerome Powell stated before the House Financial Services Committee on Tuesday that the US economy is doing well, ruling out any reasons that could hinder the growth rate, and added that the current interest rates are appropriate to support economic growth.
Powell said before the Senate Banking Committee on Wednesday, that there is no reason that should stop growth as the unemployment is low, wages are high, and new jobs are added.
Investors are anticipating the release of the key US inflation data for January, should the data show positive performance, the US dollar will extend its surge to new highs, which will impact gold and other dollar-denominated metals.
At 13:30 GMT, the CPI annual reading will be released, with forecasts to rise by 2.4% in January vs. 2.3% in December, and the monthly reading is expected to rise by 0.2% unchanged from previous reading.
The main US stock indices opened lower on Thursday, weighed down by sharp losses in the technology sector and the lingering concerns over the coronavirus.
China revealed today that the coronavirus death toll rose to more than 1,360 victims, and infected about 60,000 cases.
Fed Chair, Jerome Powell, said before the US Senate yesterday that the Fed might use more quantitative easing, adding that the fiscal policy is as important as monetary policy in combating any upcoming recession.
Data showed today that the jobless claims in the US increased by 2,000 to 205K during the past week, while the CPI reading for January rose by 0.1%.
As for stocks, Dow Jones fell by 0.6% or 185 points to 29,360 as of 15:06 GMT, Nasdaq lost 0.5% or 51 points to 9,674, and S&P 500 lost 0.2% or 7 points to 3,372.